Key takeaway
Usually yes for amounts you cannot repay within the interest-free period. Credit card finance charges are typically much higher than personal loan rates.
Is a personal loan cheaper than a credit card?
Usually yes for amounts you cannot repay within the interest-free period. Credit card finance charges are typically much higher than personal loan rates.
When is a credit card better?
For short-term spends you can repay in full by the due date, a credit card is effectively interest-free and may earn rewards.
Frequently asked questions
If the loan rate is lower than your card's finance charge, consolidating can save money – as long as you stop running up new card balances.
Sources & editorial policy
Content is researched from official sources such as the Reserve Bank of India (RBI), credit bureaus and lender websites, and reviewed periodically. Rates and charges change often – always confirm the latest terms with the lender.