Personal Loan Vs Credit Card EMI: What Works Better For Wedding Expenses?
Personal Loan Vs Credit Card EMI: Many families turn to borrowing options to fund the celebrations without exhausting savings.
Weddings in India are as much about emotion as they are about expense. From grand venues and designer outfits to catering and photography, the costs quickly add up. When savings fall short, many turn to credit or financing options. Two common choices are personal loans and credit card EMIs. But what makes more sense for your wedding budget?
Understanding Personal Loans And Credit Cards
A personal loan is an unsecured loan offered by banks, NBFCs or fintech lenders. You borrow a lump sum and repay in fixed EMIs over a set tenure.
A credit card EMI, on the other hand, allows you to convert high-value purchases into manageable monthly instalments using your existing credit card limit.
Interest Rates And Tenure
Personal loans usually come with interest rates ranging from 9% to 24% per annum, depending on your credit profile, income, and lender. They offer longer repayment tenures, making them suitable for larger wedding expenses such as venue booking or jewellery.
Credit card EMIs are often convenient but can attract higher rates, typically between 30% and 48% annually. The repayment period is shorter. Although some banks offer promotional low-interest EMIs for partner merchants, these are valid for specific transactions only.
Loan Amount And Flexibility
Personal loans give you access to higher loan amounts based on your eligibility. This makes them ideal if you need to cover multiple wedding-related costs, including advance payments and post-event expenses.
Credit card EMIs are restricted by your card’s limit. If your card limit is modest, you may need to split expenses across multiple cards or sources. However, they’re perfect for quick, smaller payments—like buying bridal attire, electronics, or booking a honeymoon package.
Charges And Prepayment
Both options include processing fees and potential prepayment penalties. If you intend to repay early, check which option offers more flexibility without heavy charges.
To conclude, if you’re planning a big, multi-day celebration and want predictable EMIs with flexible repayment, a personal loan offers better control and lower long-term costs. It’s also more suitable for borrowers who need a lump sum to manage vendors, venues, and multiple bookings.
If your expenses are limited to a few transactions or last-minute purchases, a credit card EMI is faster and more convenient. It’s ideal for digital-savvy spenders who want to spread out smaller costs without taking a separate loan.
