Personal Loan Or Credit Card: Which Is Better For Your Upcoming Travel Plans?

In this modern age, technology is making crucial developments in almost all sectors. The travel industry is no exception to this. Be it a hotel stay, food joints or various travel modes, everything has become easily accessible. People travel for various personal, professional and leisure needs. But any type of travel needs one thing and i.e. MONEY! But today planning and saving for a trip doesn’t require years. You can plan and travel easily by borrowing money from a bank or NBFC.

There are two ways to borrow money from a financial institution for travel: a personal loan or credit card. Both these modes have their own advantages and disadvantages. You can choose any as per your needs and requirements.

What Is A Personal Loan For Travel?

A personal loan is an unsecured loan taken from a bank or NBFC to fulfill personal financial needs. You do not need to give any collateral to get this loan. Banks and NBFCs offer this loan based on your credit score, current loan obligations, capacity to pay off the loan and other eligibility criteria. You can take this loan and use its funds to travel to your favorite destination.

What Is A Credit Card?

Credit Cards are a type of modern plastic money. They come with a concept of buy now, pay later. Banks have special credit cards for travel purpose only. By using these cards you can pay for goods on credited amount by banks. In simple words, bank gives specific amount as credit or loan to the card holders to use for their utility. You can use this credit amount for their needs and pay back the borrowed amount to the banks before the next scheduled billing in lump sum or as EMIs. You can use a credit card around the world.

Category Personal Loan Credit Card
Interest rate


Banks offer interest rate from 10.85% in personal loan. In credit cards, bank offer interest rates from 12% to 35%*.
Loan Amount


As per your profile and credit score, bank offers as much Rs. 15,00,000 to Rs. 20,00,000 as loan amount. Every credit card has a specific credit limit. You are not supposed to spend over that limit or else you’ll be charged with heavy interest rate.
Rewards and cash backs


In personal loan, banks and NBFCs may offer flexible loan terms but there are no rewards or cash backs for travel bookings. Through a travel credit card, you can enjoy many benefits, rewards and cash back points at your travel bookings and payments at various destinations.


Personal loan tenure is as long as 5 to 7 years. You have to renew your credit card every year. Banks take renewal fees. The amount taken as credit on a travel credit card is supposed to be paid as soon as you can to avoid piling interest rate.

Now that you have read a good comparison between a personal loan for travel and a travel credit card, check your eligibility here to avail one!

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