For those planning major expenses—such as buying a new phone, covering wedding costs, or undertaking home repairs—limited funds often raise an important question: should the expense be managed through a personal loan or a credit card EMI?

While both options appear convenient, the real distinction lies in their overall cost. Here’s a look at which choice proves more economical and under what circumstances each option works best.

Personal loans generally have lower interest rates compared to credit card EMIs. The annual interest rate for personal loans typically ranges from 10-15 percent, whereas credit card EMIs can go up to 18-40 percent. Personal loans have fixed rates, set tenures, and equal EMIs, making it easier to calculate the total interest. For longer repayment periods, like 2 to

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