Unexpected big ticket purchase or a forthcoming expense, what would you do, if you fall short of cash at such times? Well, most people would look at options of Credit Card and Personal loan. You can opt for either or both, depending upon how much money you need? how urgent is it? and when can you repay? You can begin with analyzing your situation and then decide. But first, let’s understand what these options are.
What is a Credit card and how it works?
Credit Card is a financial instrument that comes with a predetermined monthly credit limit.
The limit, once used, can be repaid in 45 days without any interest. However, if you are not able to pay in 45 days or you pay only part of the whole amount, interest and other charges are levied. So, it turns out to be expensive. The interest rates also marginally higher than the personal loan interest rates; you can consider it for short-term financing. You can also avail a pre-approved loan on credit card. There’s no documentation required for this loan and is fastest source to attain an unsecured credit loan.
What about Personal Loan?
Personal Loan is an unsecured loan you can avail from any bank or a NBFC to meet your financial needs. It is best suited when your requirement is for higher amount and for longer period. Usually, personal loans providers in India have certain eligibility criteria; having a good credit score is one of them. Credit score plays an important role in getting you a good interest rate on personal loan.
Personal loan usually takes about a week to 5 days for the approval and requires proper documentation. The interest rate varies from 13% to 24% and is levied on reducing balance. You can opt for a repayment period of 12 to 36 months, whichever suits you. On the other hand , if you opt for personal loan online, the process is pretty simple and faster.
So, Collate this information and decide, whether to opt to credit card or personal loan. As such personal loan makes more sense considering the flexibility it offers you. However, it really depends on your requirement.
MYFI is an online lending platform that connects you with lenders who offer you a wide range of personal loans to meet your emergencies, medical expenses, wedding and unexpected purchases. The process is paperless, easy and fast. The interest rates offered are also very attractive which makes it affordable to all. The documentation is simple and quick. Apply for a personal loan on MYFI with all the necessary information. Loan is approved upon verification of your information in the minimal timeline.
Let your financial shortcomings not stop you from living your life. Fly with MYFI!