When a personal loan undercuts rotating credit-card debt
Revolving interest is the expensive default
Paying only the card minimum leaves a balance that accrues high interest. A personal loan at a clear annual rate, used to clear that balance, can cut total interest—if the loan tenure is not stretched forever and fees are counted. Card EMI conversion is another path; compare its rate and fees the same way.
Run the EMI maths before you apply
Enter the personal-loan principal, rate, and a tenure you can finish without starving the emergency fund. Use the EMI calculator for the monthly hit and total interest. Line that up against continuing to revolve at the card’s effective cost. The cheaper total with a payable EMI wins—not the lowest month at a seven-year tenure.
Close the revolving door
After disbursal, pay the card in full and pause discretionary swipes until the personal loan is routine. Otherwise you stack a new revolving balance on top of the cleanup loan and erase the undercut. Keep a small cash buffer so the next shock does not return to the card.
Results from FinanceChacha are estimates for planning, not financial or tax advice. Read the disclaimer.
Try the calculator
Open the calculator this guide refers to and run your own numbers.