Is it wise to raise personal loan to pay up credit card bill?
If you have accumulated a huge amount on your credit card, it is alright to take a personal loan to pay up dues. Remember, credit card has an easy mode of payment. The use of a credit card is different from a personal loan. Don’t use a credit card when you need a personal loan. If the amount is big and you need more EMIs spanning two-three years to pay the loan, then go in for a personal loan. I have a savings account with the bank that has offered me a ready cash facility. Should I take it or raise a personal loan? I require a loan of Rs 250,000. Rupees 250,000 is a big amount. I suggest you take a personal loan. Work out the EMI and tenure of the loan. You can choose a loan tenure of two to four years. Pay not more than 25-30 per cent of your monthly salary as EMI. The interest will depend on your previous track record and credit appraisal done by the bank when you will apply for the loan. If you choose to pre-pay later, you have to pay 3-4 per cent of the amount you are pre-paying a
