INCOME TAX11 Sept 2026
Need ₹2 lakh urgently? Here's what experts say is cheaper: Personal loan, savings or credit card | Mint
An urgent ₹2 lakh need has no single right answer. Experts say it affects anyone facing medical bills, repairs or education costs. Using savings beyond your emergency fund is cheapest. Personal loans, at 10-18% annually, suit repayment over months. Unpaid credit card balances can cost over 24% yearly, turning ₹1 lakh into nearly ₹40,000 in interest. Compare rates, fees and repayment capacity first.
Key Statutory Highlights
- Experts say meeting an urgent need from savings, beyond your emergency fund, is usually the most cost-efficient option.
- A personal loan from most banks costs 10-18% annually and suits expenses you repay over several months through structured EMIs.
- An unpaid credit card balance beyond the due date can cost upwards of 24% annually, so a ₹1 lakh balance left unpaid for a year can rack up close to ₹40,000 in interest.
Actionable Advice for Taxpayers / Founders:Before borrowing, compare effective interest rates, processing charges and your own repayment capacity, and remember that urgency alone should not push you into an unnecessarily expensive loan. If you plan to break an FD, check the 0.5-1% penalty your bank charges on the interest earned.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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