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Want to use a personal loan for credit card debt? Consolidate outstanding balances by choosing a personal loan with a lower interest rate.
A personal loan is an unsecured credit option with no usage restrictions. You can utilise a personal loan to pay off your credit card debt and clear the outstanding balance.
Multiple lenders on Bajaj Markets offer instant personal loans for those who meet the eligibility criteria. Such loans allow you to take care of immediate expenses. You can also use them to pay off large credit card debt on a single card or multiple cards.
The primary purpose of using a personal loan to manage credit card debt is to obtain a lower interest rate along with more favourable repayment terms. Using a personal loan for debt consolidation can be a sound financial strategy when managed wisely.
Here are some key reasons to consider opting for a personal loan:
Lower Interest Rates: Pay less compared to credit card interest charges.
Simplified Payments: Combine multiple card bills into one EMI.
Flexible Tenure: Choose a repayment period that fits your finances.
Pay Beyond Minimum Due: Reduce both principal and interest faster.
Boost Credit Score: Lower utilisation and timely payments can improve your score.
Compare personal loan offers from some of the leading banks and NBFCs on Bajaj Markets. Check interest rates, tenures, and fees side by side to choose the best option for credit card debt consolidation.
| Available Offerings | Max. Loan Amount | Starting Interest Rate | Max. Tenure | Processing Fee |
|---|---|---|---|---|
Privo (Credit Saison) Personal Loan |
₹5 Lakhs |
9.99% p.a. |
60 months |
1% to 3% of the loan amount + GST |
Bajaj Finance Personal Loan |
₹55 Lakhs |
10.00% p.a. |
96 months |
Up to 3.93% of the loan amount (Inclusive of taxes) |
Kotak Mahindra Bank Personal Loan |
₹40 Lakhs |
10.99% p.a. |
72 months |
1.10% - 1.50% of the loan amount + GST |
KreditBee Personal Loan |
₹10 Lakhs |
12.00% p.a. |
60 months |
Up to 5.1% + GST |
L&T Finance Personal Loan |
₹15 Lakhs |
12.00% p.a. |
48 months |
Up to 3% of the loan amount + GST |
Freo (formerly MoneyTap) Personal Loan |
₹5 Lakhs |
12.00% p.a. |
36 months |
1% onwards |
SMFG India Credit Personal Loan |
₹25 Lakhs |
12.00% p.a. |
60 months |
0% to 6% of the loan amount |
YES BANK Personal Loan |
₹50 Lakhs |
12.50% p.a. |
72 months |
1.15% to 2.75% of the loan amount |
Federal Bank Personal Loan |
₹5 Lakhs |
12.75% p.a. |
48 months |
2% to 3% of the loan amount + 18% GST |
Aditya Birla Capital Personal Loan |
₹7 Lakhs |
13.50% p.a. |
60 months |
Up to 4% of the loan amount + GST |
Fibe Personal Loan |
₹5 Lakhs |
14.00% p.a. |
36 months |
Up to 2% of the loan amount |
Kissht Personal Loan |
₹4 Lakhs |
14.00% p.a. |
24 months |
3% to 5% of the loan amount |
PaySense Personal Loan |
₹5 Lakhs |
14.00% p.a. |
60 months |
2% to 2.5% of the loan amount + GST or ₹500 + GST (whichever is higher) |
Muthoot Finance Personal Loan |
₹10 Lakhs |
14.50% p.a. |
60 months |
2% to 4% of the loan amount |
Finnable Personal Loan |
₹10 Lakhs |
15.95% p.a. |
60 months |
Up to 3% of the loan amount |
InCred Personal Loan |
₹10 Lakhs |
16.00% p.a. |
60 months |
2% to 5% of the sanctioned amount |
Piramal Finance Personal Loan |
₹6 Lakhs |
17.25% p.a. |
60 months |
1.50% to 4.50% of the loan amount |
Olyv Personal Loan |
₹1 Lakh |
18.00% p.a. |
12 months |
2% to 12% of the loan amount |
IIFL Finance Personal Loan |
₹5 Lakhs |
18.00% p.a. |
42 months |
2% to 6% of the loan amount + GST |
Upwards Personal Loan |
₹5 Lakhs |
18.00% p.a. |
36 months |
Up to 4% of the loan amount |
Zype Personal Loan |
₹5 Lakhs |
18.00% p.a. |
12 months |
2% to 6% of the loan amount |
mPokket Personal Loan |
₹45,000 |
24.00% p.a. |
90 Days |
₹50 to ₹200 + 18% GST (maximum APR of 48%) |
Moneyview Personal Loan |
₹10 Lakhs |
1.33% p.m. |
60 months |
Starts from 2% of the approved loan amount |
CASHe (Bhanix Finance) Personal Loan |
₹3 Lakhs |
2.79% p.m. |
18 months |
Up to 5.5% of the loan amount + GST |
Disclaimer: The above-mentioned information is subject to change at the lender’s discretion.
Before applying for a personal loan on Bajaj Markets, you must:
Be an Indian citizen
Be salaried or self-employed
Be at least 18 years old
Earn a minimum monthly income of ₹9,000
Have at least 6 months of work experience
Maintain a CIBIL score of 685 or above
In addition to meeting the eligibility criteria, you must keep the necessary documents ready to ensure a smoother application process. These documents typically serve to verify your identity, address, and income. Generally, lenders require the following:
| Document Type | Accepted Documents |
|---|---|
Identity Proof |
PAN Card, Aadhaar Card, Voter ID, Passport, Driving Licence |
Address Proof |
Aadhaar Card, Voter ID, Passport, Driving Licence, Electricity Bill, Telephone Bill |
Income Proof |
Bank Statements (last 3 months) or Salary Slips (last 3 months) |
Bajaj Markets has a simple process of getting a personal loan to pay off your credit card debt. Below are the steps to apply for an online personal loan:
Click on the ‘Apply For Loan’ button on this page
Choose your profession from the dropdown options
Enter your mobile number and PIN code
Accept the terms and conditions after reading carefully
Click on ‘Proceed’
Enter or choose the following details, including PAN, Name as per PAN card, Date of birth, Employer category, Employer/company name, Net monthly salary, Email ID, Gender, and Salary credit mode (Bank or Cash)
Click on ‘Submit’
Review and select loan offers based on your eligibility
Provide any additional details if requested
Once all steps are completed successfully, the approved loan amount will be credited directly to your bank account.
Considering a personal loan will minimise the burden you are facing from a piled-up credit card debt. Doing so can offer several benefits, like:
Credit cards have a spending limit, and the interest rate charged on the outstanding balance may fluctuate based on how much limit you are utilising.
If you fail to pay your bills on time, the interest on unpaid bills can quickly increase because of the additional fees and charges.
With personal loans, you have to pay a fixed monthly EMI and often, personal loan interest rates are lower than credit card loan interest rates. So, you will pay less interest when you pay credit card bills with a personal loan.
Credit card debt can become unmanageable, especially when you have multiple credit cards with higher interest rates. After the approval of your application, you can use the loan amount to clear outstanding balances on all your credit cards.
You can then pay a monthly EMI towards your personal loan and simplify the payments.
Every credit card has a fixed credit limit based on the cardholder's eligibility criteria and the card-issuing bank's policies. Your credit utilisation ratio will be higher if you have a large credit card debt. As a result, it can impact your credit score.
Paying outstanding balances on your credit cards will allow you to free up your credit card limit. However, be responsible while using your credit card because your overall credit utilisation ratio will still be higher until you repay the personal loan.
Paying off credit card debt using personal loans may help you improve your credit score. However, you need to ensure you continue making prompt payments for your personal loans to maintain and improve your credit score.
Getting a personal loan to manage and pay off credit card debt may prove to be useful. It allows you to simplify payments towards a single personal loan instead of multiple credit card bills.
You can lower the overall interest rate by choosing a personal loan with a lower interest rate. There are other ways to manage credit card debt without getting a loan to pay credit card debt:
If you have sufficient savings to pay off all your credit card balances, you can do so. This allows you to lower your credit immediately. However, when you do this, you may not have sufficient funds to meet any emergencies that may arise later.
Find a card issuer with a lower interest rate and a balance transfer option, and transfer outstanding balances from old credit cards to a new card. Often, balance transfer cards have 0% APR for the first few months (6 to 21 months).
So, you can have enough time to pay your balances without interest charges.
Those with a long-standing relationship with a card issuer can try to negotiate directly with the issuing bank to lower the credit card interest rate. Paying your bills promptly can help you get a lower interest rate, which can help you clear your debt without a new loan.
Yes. A personal loan usually comes with lower interest rates and fixed EMIs, making it easier to consolidate and repay outstanding credit card dues.
Paying off credit card debt with a personal loan can lower your credit utilisation ratio, boosting your score. But missing EMI payments can negatively impact it.
A personal loan gives you funds with a fixed interest rate and repayment term. This makes it a good option for consolidating multiple debts. A balance transfer moves existing credit card debt to another card, often with a low or 0% introductory interest rate.
Balance transfers may include fees and require transferring debt between different card issuers. The best option depends on your debt amount, interest rates, and ability to repay.
Lenders decide loan amounts based on income, credit score, and existing debts. Some lenders on Bajaj Markets offer up to ₹55 Lakhs, but approval depends on eligibility.
Yes, a personal loan can combine multiple credit card balances into one fixed payment. This makes repayment easier and may lower your interest costs.
It can, but only if the personal loan has a lower interest rate than your credit cards. Fixed repayment terms also help you clear the debt within a set period. Compare the loan’s rate, fees, and terms to your credit card costs before deciding.
Yes, but be careful not to build up new debts. Paying off the full balance each month and keeping spending in check can prevent future financial strain.
Yes, taking a personal loan can be an effective strategy to clear credit card dues, especially if the loan offers a lower interest rate. It also simplifies repayment if you have outstanding balances on multiple credit cards.
Opting for an instant personal loan with no usage restrictions can make repayment easier. However, ensure that the loan’s interest rate is lower than that of your credit card; otherwise, it only shifts the debt without reducing the burden.
Credit card issuers generally do not waive the entire debt. In some cases, you may be able to negotiate a settlement and have a portion of the outstanding amount reduced.
