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Personal loan vs Credit Card? Which is better during Lockdown?

By Bajaj Markets - Apr 23,2020
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Which is better during the pandemic? Personal loan or credit card?

The pandemic has affected almost every country around the globe. The lives of billions of people have been impacted due to the pandemic outbreak. The Indian government has taken some proactive measures like imposing a nationwide lockdown to tackle this global crisis in a better way. While the biggest concern regarding pandemic is to stop its spread and save lives, we cannot ignore the fact that the outbreak will also affect the economy and people’s finances to a large extent. It is also quite possible that the pandemic may impact your monthly income. Therefore, it becomes essential that you utilize your finances wisely during this period and ensure that you cut down on your non-critical expenses. However, if you happen to fall short of money during this trying time, you can consider availing a personal loan or credit card to meet your financial requirements. Let’s have a look at which one of these two financing options is a better one amidst the pandemic.

Personal loan vs credit card

  • You can easily avail an instant personal loan with leading financial institutions through a hassle-free application process. With the help of leading banks and NBFCs, you can apply for a personal loan and get the required loan amount within 24 hours.
  • Though a credit card comes with a pre-approved limit, you are charged 18 % GST on the credit card EMIs. In addition to that, the tenure on a credit card repayment ranges between 12 to 48 months, whereas you can avail a personal loan for a repayment tenure up to five years, this makes the loan repayment easier. Moreover, before availing a personal loan, you can calculate your monthly instalments with the help of an online personal loan EMI calculator. This will help you manage your monthly expenses wisely and make timely repayment of the loan amount. It is essential that you repay your loan within the stipulated time to keep your credit score intact during such times.
  • Another major factor is that the interest rate charged on credit cards is way higher as compared to personal loan interest rates. Therefore, if you fail to repay your credit card bills on time, there is a high chance that you may land up in a debt trap. Accumulating debts during these times can prove to be too costly in the long run. This is because the economic uncertainty that may follow the pandemic may affect your credit repayment capacity, thereby hurting your credit score and credit history adversely.
  • With the help of leading financial institutions, you can avail a personal loan at an attractive interest rate. Moreover, if you have a good credit score while applying for a loan, you can also negotiate with the lender to get the loan at an even more competitive interest rate and favourable terms. Low interest on personal loans will not only lessen the repayment burden but also reduce the overall cost of borrowing in the long run.

Apply for a Personal Loan
By taking the above factors into consideration, it would be safe to assume that a personal loan is a more viable option as compared to credit cards during the pandemic.

Therefore, if you are looking for financing options to meet your monetary requirements during the outbreak, you can consider settling for a personal loan.

You can easily avail a Bajaj Finserv Personal Loan available at Finserv MARKETS from the comfort of your home. Simple eligibility criteria, minimal documentation, flexible repayment tenures, and prepayment facility are some of the major features of availing a personal loan at Finserv MARKETS.The personal loan application is approved instantly and the loan amount is disbursed within a short time. You can also keep a track of your loan status, EMI due dates, outstanding amount, etc. by visiting the online customer portal. This facility helps in making timely repayment of the loan amount.

The loan amount can be used for various purposes such as taking care of monthly expenses during these times, for dealing with unexpected medical emergencies, etc. Before you apply for a personal loan at Finserv MARKETS, make sure that you check your loan eligibility. This will help you in reducing the chances of rejection of your loan application. You must not forget to read and understand the terms and conditions of the personal loan agreement carefully before signing it. This will help you avoid any inconvenience in the later stage of the loan tenure.

Read More:

Managing your Monthly Expenses During Quarantine

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“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522