People often ask which financial instrument is better. Credit Card or Personal Loan? But, it completely depends on them if you want to buy something big or more expensive like a car, home Personal Loan is the better option to go and if you want to buy small things within your credit limit like movie tickets or if you want to pay your monthly bill Credit Card is a better option. Basically, it is based on your requirements or if you have any emergency or not and when you will able to repay it.

Personal Loan

Personal Loan is a kind of unsecured loan people take for various reasons like for holiday vacation, medical expenses, weddings, for study and this list goes on. As you don’t have to mortgage anything to that bank or NBFC for your loan so the interest rate is high for this loan.

Credit Card 

Credit Card loan is a pre-approved loan; it is also an unsecured loan. But in this loan, you will have a credit limit based on your credit score.

Documents you need for Credit Card

Following are the set of documents which are required to apply for a credit card-

• ID Proof
  • PAN card
  • Aadhaar card
  • Voter ID card
  • Driving License
• Address Proof
  • Rental Agreement
  • Electricity Bill
  • Telephone Bill
  • Passport
• Income Proof (For Self-employed)
  • Business Continuity Proof
  • Balance Sheet or Audited Profit and Loss Statement
  • Statement of recent ITR (Income Tax Returns)
• Income Proof (For Salaried)
  • Appointment letter
  • Recent Salary slip/s
  • Salary Certificate

Eligibility for Credit Card

• Age– The applicant for the Credit Card must be in the age group of 21 to 65 years. But also people over the age of 15 years can apply for credit card.
• Regular Income– Applicant should have a regular income. He can have a regular business or salaried for at least last three months. The applicant should have proof either with their IT file or last three months salary slips.
• Income– Bank will check applicants income if he/she is capable of repaying his/her credit card bill. This thing has an important role when comes to set the credit card limit.
• Credit History –Credit history tells about your past loan repayment. So if you have a good credit score you will get a better credit card and higher credit limit. And a good credit score really helps when you take any kind of loan. 
• Nationality– Applicant should be an Indian resident or non-resident Indian.

Eligibility for Personal Loan

• Minimum age of 21 years and maximum of 60 years.
• Minimum 2 years of work experience if self-employed minimum 2 years of business experience.
• Minimum income 25,000
• Minimum CIBIL  score 650
• The applicant should have an account in this bank.
• Co-applicant should be applicable in case of HL/LAP

Documents Required for Personal Loan

KYC DOCUMENTS:

• Pan Card
• Aadhaar Card
• Voter’s ID
• Passport  Size Photo

INCOME DOCUMENTS:

• Salaried: Last 3 years of PAYSLIPS, 6 months salary account bank statement.
• Self – employed: IT files for last 2 years, Financial Documents, last 6 months primary account statement of the company.
• Installments applicant is currently paying, all the numbers of credit cards and credit limit applicant has.

PROOF OF EMPLOYMENT / BUSINESS CONTINUITY

• Salaried:Form 16 or appointment letter of 2 years earlier.
• Self Employed: Tax registration certificate of dated 2 years or an earlier period.
• Property Documents (HL/LAP)
• If the property is under construction proof of booking amount or allotment letter.
• If the property is ready Sale deed, Property tax paid certificate(latest).