Credit Card Loan vs Personal Loan: Which is a Better Choice to fund Honeymoon?

The hustle of your wedding is over. Now it’s time for you to relax on your honeymoon. While choosing the destination is an important task, planning your finances well is most crucial. Once you’ve fixed a budget, next step is to choose the right financing option for your trip. It is not uncommon for couples to opt for a loan to cover the costs of their honeymoon.

Often, people are unsure whether to opt for a Personal Loan or a Loan against Credit Card. Despite having many similarities, there are few critical areas of differences to consider while choosing between the two:

• Disbursal Time - Both are unsecured loans; therefore, take less time for disbursal.

• Disbursal Amount - For Credit Card Loans, banks provide the loan on the unused limit of the card. Thus limiting the amount that can be disbursed. You can avail a Personal Loan for a much higher amount.
  
  You can check your eligibility here.

• Interest Rates - Interest rates are generally higher for a Loan against Credit Card as compared to Personal Loans. Moreover, interest for Personal Loans can be fixed or fluctuating. Your repayment amount can significantly reduce in case of fluctuating interest rates. For a Loan against Credit Card, interest rates are always fixed.

• Documentation - Loan against Credit Cards are pre-qualified loans. Since you already hold a Credit Card from that institution, you will require no further proof of eligibility. For a Personal Loan, you will need to submit relevant documentation. This includes proof of eligibility, KYC documents, and bank statements. For a non HDFC Bank customer it will take about 4 hours to process but for a pre-approved customer can get his Personal Loan in just 10 seconds!

• Fees - Loans availed against a Credit Card have relatively higher fee as compared to those levied on Personal Loan.

So, keeping in mind your dream honeymoon, what makes a better choice for you?

If you are looking for an HDFC Bank Personal Loan, click here to apply now.

* Terms & conditions apply. Personal Loan and Loan against Credit Card disbursal at sole discretion of HDFC Bank Ltd.