Checkout shows card EMI at 0% and a personal loan at 14%. Neither is free if you cannot pay from money you already have. The real comparison is total outflow, missed-payment penalties, and what you stop saving.
Credit card EMI (including no-cost)
- Converts a purchase into fixed monthly card bills — often 3–12 months.
- No-cost EMI may hide removed discounts or processing fees + GST.
- Miss one cycle → regular card interest (36%+) on the balance.
- Keeps credit utilisation high until the EMI clears.
Personal loan for gadgets
- Unsecured loan at 12–18% reducing balance — total cost is explicit.
- Processing fee (1–2%) adds to effective rate.
- Fixed tenure; no revolving trap if you close on schedule.
- Hard inquiry hits CIBIL briefly; on-time EMI helps score.
Which is cheaper on ₹1 lakh gadget?
True no-cost 6-month card EMI ≈ ₹1L total if you pay on time. Personal loan at 14% for 12 months ≈ ₹1.08L. But a missed card payment destroys the no-cost math. If you need 12+ months, personal loan total cost is often clearer — if you need any loan at all.
The takeaway
Rule: if you cannot buy the gadget twice in cash (price × 2 in savings), skip both EMI and loan. Save 3 months and buy outright.