Instant Personal Loan vs. Loan Against Credit Card: Which is Right for You? – Ruloans

When a financial emergency strikes, the foremost question that often pops up is – should I opt for an instant personal loan or a loan against my credit card? This dilemma is quite common, especially given the myriad options available today to meet urgent financial needs. At Ruloans, we are committed to helping you navigate this sea of choices and steer towards the one that best suits your financial situation.

Understanding the Basics:

To begin, it’s crucial to get a grip on what these options entail. An instant personal loan is an unsecured borrowing that can be availed without putting up any collateral. It comes with the advantage of quick processing times and hence serves as an excellent resource during emergencies.

In contrast, a loan against a credit card is fundamentally a pre-approved loan with your credit card limit as your borrowing limit. It’s synonymous with instant availability, flexibility, and easy procurement.

Advantages and Disadvantages:

Instant Personal Loan Pros:

  • Higher Loan Amount: These loans usually offer a higher amount than the credit limit of your credit card.
  • Longer Repayment Tenure: This enables manageable EMIs spread over an extended period, which eases the repayment process.
  • No Collateral: As these are unsecured loans, you don’t have to risk any personal asset.


  • Interest Rates: The interest rates might be slightly higher compared to other loan options.
  • Strict Eligibility Criteria: The lenders generally have strict credit score and income requirements.

Loan Against Credit Card Pros:

  • Instant Disbursal: These loans are pre-approved, allowing for almost immediate disbursal.
  • Flexibility: You can decide how much you wish to borrow within your credit limit.
  • No Documentation: The existing relationship with the bank eliminates the need for additional documentation.


  • Lower Loan Amount: The loan amount is limited by your card’s credit limit, which might not suffice in case of larger financial needs.
  • Higher Interest Rates: The interest rates for these loans are usually higher compared to personal loans.

Making the Right Choice:

Ultimately, the choice between an instant personal loan and a loan against a credit card depends on your unique financial circumstances. If you need a larger amount and have a good credit score, an instant personal loan could be more beneficial. However, if you need immediate funds for a short period and don’t want to go through the loan application process, a loan against a credit card might be the better option.

At Ruloans, we provide expert guidance to help you make an informed choice. Visit our website or get in touch with our team for personalized advice tailored to your financial situation. Remember, understanding your options is the key to making the best financial decisions.


Choosing the right type of loan can make a huge difference in how you manage your financial emergency. Whether it’s an instant personal loan or a loan against a credit card, each has its unique benefits and drawbacks. As always, the key is to assess your needs, understand your repayment capacity, and make an informed decision. We at Ruloans are always here to help you sail smoothly through your financial challenges. Make your loan journey easy, secure, and hassle-free. Explore our website for more information, or feel free to reach out to us.

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