New Delhi: When someone needs money, banks are often the first place they turn to. Taking a loan from a bank can easily help complete pending tasks. In urgent situations, people opt for instant personal loans or credit card loans to meet their needs. Both of these loans provide a decent amount of funds, but they have different advantages and disadvantages.

The right choice depends on your needs and financial situation. Understanding the differences will help you avoid problems. You need to consider several important factors before taking either loan. Most importantly, which of these two loans will be more beneficial? You can find out more about this in the article below.

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Important things to know about Instant Personal Loans

Instant personal loans are offered by banks and NBFCs (Non-Banking Financial Companies), and they have distinct features. The biggest advantage is that these loans are approved and disbursed quickly. Interest rates typically range from 10-24 per cent per annum. Repayment is done through fixed EMIs (Equated Monthly Instalments). This loan is ideal for those who need a large amount of money for a longer period. It’s also important to consider processing fees and documentation requirements. This loan can be easily obtained.

Learn about the features of Credit Card Loans.

In times of need, a credit card loan is based on your existing credit limit. The interest rates are relatively lower, usually 12-18 per cent per annum. Many banks also offer no-cost EMI options. The biggest advantages are its quick availability and flexible repayment options. This is suitable for those who need a small amount and can repay it quickly.

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Comparison and Impact of the Loans

If you need a small amount of money urgently, a credit card loan is convenient. However, if you need a large sum for a longer period, an instant personal loan will be a better option. In both options, it’s essential to consider the interest rate and processing fees, as these can increase the EMI burden.

Often, people take out loans impulsively during emergencies without proper consideration. This can lead to significant repayment pressure later. The right choice matches your actual needs, repayment capacity, and credit profile.