The interest rates aren't what they appear
Card EMI conversions typically run 14–24% p.a., plus a one-time processing fee of 1–3%. Personal loans for good profiles run 10.5–16% with similar fees.
The hidden kicker: GST at 18% applies to the interest and fees on card EMIs — a '15%' card EMI effectively costs ~17.7%. Personal loan interest carries no GST (only the processing fee does).
What 'no-cost EMI' actually means
In a genuine no-cost EMI, the interest equals an upfront discount you'd otherwise get — you pay the sticker price in instalments. But you still pay GST on the interest component, and the processing fee often survives.
No-cost EMI on a planned purchase you'd make anyway is usually fine. It becomes a trap when the easy instalment makes you buy things you wouldn't pay cash for.
When the card EMI wins
Small amounts (under ₹50k), short tenures (3–6 months), and genuine no-cost offers — the convenience beats the marginal cost, and there's no fresh loan on your bureau report.
It also wins when speed matters: conversion is instant, no documentation.
When the personal loan wins
Larger amounts over longer tenures. On ₹2 lakh over 24 months, a 12% personal loan vs an 18%+GST card EMI saves roughly ₹15,000–20,000 all-in.
It also keeps your card limit free — important because a maxed-out card raises utilisation and dents your credit score while the EMI runs.
The one comparison that settles it
Ignore the monthly EMI and compare the total payment: principal + all interest + all fees + GST, over the same tenure. Our credit card EMI calculator and personal loan EMI calculator put both numbers side by side in under a minute.