Personal Loan or Credit Card: When should you opt for it?

Check if you have a Pre-approved Loan Offer  

Planning a big-ticket purchase? 

You can take a personal loan or use your credit card to pay for it. 

Read through our guide to choose the best financing option for you. 

Personal loans vs credit card


Personal Loan

Credit card


Loan for a range of purposes, such as medical expenses, children’s education, wedding, home renovation etc

Small and big purchases for business or personal needs

How to borrow

By applying to a bank or financial institution with documentation

By using credit card in-store or online


Amount paid as lumpsum to the customer

Paid directly to the merchant on card swipe


As EMIs to the bank for a specified tenure

Paid by customer at the end of credit period


Generally from one to five years

Free interest free credit period usually up to 45 days

Borrowing limit

Calculated by bank based on proof of income

Predetermined monthly credit limit

Interest rates

 Competitive in comparison to cards after free credit period (i.e. beyond due date)

Marginally higher than personal loans in case of delayed or part payments

When to buy via a credit card

  • When you want to buy something within your credit limit
  • When you have sufficient credit card limit for a big-ticket purchase.
  • When you want to buy instore or online
  • When you are not eligible for a personal loan

When to buy via personal loan

  • When you need a substantial amount of money higher than your credit card limit.
  • When you are planning a large purchase that you want to pay over a period of time
  • When you need to pay a business or person who does not accept credit cards.

Do remember that you can always use your credit card for needs over and above your personal loan amount.

No matter what your need HDFC Bank has a solution for you – be it a personal loan or a credit card. So apply for a personal loan or credit card now! 

* Terms & conditions apply. Loan disbursal at sole discretion of HDFC Bank Ltd.

Sr. No.

Loan on Credit Card Disbursals are Basis Below Conditions


 If you have an existing  HDFC credit card, you can directly avail loan on your credit card.

Apply fnow


If you don't have HDFC Bank Credit Card, you must first apply for a new credit card with us. Post which, you can check the eligibility and apply for Loan on credit card

Apply for Credit Card