Credit Card EMI vs Personal Loan
Enter your card dues to compare the card's EMI plan against clearing it with a personal loan.
Runs entirely in your browser — your numbers never leave this page.
How it works
Rs 2L on a card at 42% revolving interest is a fire — two extinguishers:
- Card EMI conversion (13–18%): instant, no paperwork, keeps it with the same bank. Rate is decent but rarely the cheapest.
- Personal loan (11–14%): usually cheaper interest, but adds a 1–3% processing fee and a credit inquiry.
- Compare totals, not rates: the fee can erase a 2% rate advantage on short tenures.
- Tenure trap: longer tenure = smaller EMI but much more interest. Pick the shortest EMI you can actually afford.
- The real fix: after consolidating, don't run the card back up. Freeze the limit or cut the card till the loan closes.
Frequently asked questions
Should I convert card dues to EMI?
Yes if you can't clear the full amount — EMI conversion at 13–18% beats revolving at 36–42% massively.
Is a personal loan cheaper than card EMI?
Usually — personal loans run 11–14% vs 13–18% for card EMIs. But add the processing fee before comparing.
What is the interest on revolving credit?
Typically 3–3.5% per month — 36–42% annually. Paying only minimums keeps you in debt for years.
Does EMI conversion affect my credit score?
Positively, if you pay on time — it converts revolving utilization into an instalment loan and stops the utilization damage.
What tenure should I pick?
The shortest whose EMI fits your budget. Every extra 6 months adds meaningful interest.
Are there foreclosure charges?
Card EMI foreclosure: usually 3% of outstanding. Personal loans: check terms — many allow prepayment after 6–12 months.
Can I convert only part of my dues?
Yes — convert what you can't pay now, pay the rest in full to avoid revolving interest on it.
What about balance transfer cards?
Some cards offer 0–6 month low-rate balance transfers — great if you can clear the amount within the promo window.
Will a personal loan hurt my score?
A hard inquiry dips it slightly and temporarily; on-time payments then build it. Net positive for most borrowers.
What's the biggest mistake?
Clearing the card with a loan, then spending on the card again — ending with both the loan AND new card debt.