Money Borrowing Tips: When there is a sudden need for money. So often people ask for money from their friends or family. But many times we are not able to get money from friends or family. Then in such a situation people have two options. Credit Card EMI and Personal Loan. With both of these, people’s money problems get solved.

But many times people do not know this. Making EMI by taking money from credit card is full of benefits. Or taking a personal loan directly. There is a lot of difference between these two, which is important to understand. Because choosing the wrong thing can be heavy on the pocket. So let us tell you the advantages and disadvantages of both. So that you can take decisions easily.

Credit card EMI right or not?

If you already have a credit card. So EMI option is the easiest. You can convert any big expense into EMI in a few clicks. The interest rate in this is usually between 13 to 18 percent. Which depends on the bank and your credit history. The duration of EMI ranges from 3 to 12 months. Therefore it is more suitable for short-term needs.

Also read: Ayushman card limit is over, so how can you get free treatment, what is the method?

The most important thing is that no separate documentation is required and approval is done immediately. But keep in mind that if payment is missed in any month, interest and penalty increase rapidly. Along with this, the credit limit also gets blocked. Due to which there may be problems in future expenses. Therefore, before taking EMI, definitely think whether you will be able to pay each monthly installment comfortably or not.

Advantages and disadvantages of personal loan

If your need is a little bigger. For example, for medical expenses, marriage or home renovation, a personal loan would be better. The interest rate in this ranges from about 10 to 16 percent. Which may be slightly less than the EMI. The payment term is also long. Usually from 1 to 5 years. This keeps your monthly EMI low and does not put much pressure on the budget. For this one has to go through some basic documents and approval process.

Also read: Have you not received the fake e-challan link? Account will become empty, avoid fraud like this

But as soon as approval is received, the entire amount is transferred to the account. If your credit score is good and income is stable. So you can get personal loan at cheap interest. Overall, credit card EMI is fine for small needs. Whereas for larger amounts and longer plans, personal loan is a more sensible option.

Also read: Bihar Election 2025 Phase 1: How to get your voting details in an SMS before voting? Know the easy way