Credit Card EMI vs Personal Loan: Which Financial Option Costs Less?

An in-depth mathematical comparison of merchant credit card EMI schemes versus standard personal loans for big purchases.

By FINDEAL Editorial Team

• Published on Sep 07, 2026 • 3 min read

Key Takeaways

An in-depth mathematical comparison of merchant credit card EMI schemes versus standard personal loans for big purchases.

When making a major purchase like electronics, home appliances, or travel bookings, consumers often face the dilemma: Should you convert the transaction into Credit Card EMI or take a Personal Loan?

Interest Rates Comparison

Personal loans offered to salaried professionals on FINDEAL start around 10.49% to 14.00% p.a. On the other hand, non-subsidized credit card post-purchase EMI conversions typically carry interest rates ranging from 16.00% to 24.00% p.a., plus 18% GST on monthly interest charges.

No-Cost EMI Reality Check

While "No-Cost EMI" options sponsored by merchants subsidize the interest amount upfront via discount cashback, beware of processing fees (ranging from ₹199 to ₹999) and 18% GST applied to the interest component on every monthly credit card statement.

Category: Credit Card Guides

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