Home Loans Credit Cards What are Credit Cards and Loans?

What are Credit Cards and Loans?

Credit Cards and Loans

Credit Cards and Loans

Credit Cards and Loans are methods of getting cash, if you are lacking shortage of money. These facilities are provided by financial institutions which can be utilized whenever you are in need of Cash. Read more about it below.

Credit Card

A Credit Card is a form of short term loan, which is used to make payments. When you use a credit card you make the issuer of the card, pay for your purchases. The credit card issuers give you a grace period for the repayment of the amount. Along with the amount, you are also entitled to pay some fees as well. Even credit cards have their pros and cons and it is up to the user how he/she uses a credit card to make the most of it.


A loan is a contract that comes in different forms and with different terms and conditions. A loan can be a simple promissory note between two friends or a complex loan such as a personal loan, student loan, auto loan and so on.

When people require money for significant matters, such as buying a car, a new house, for education and soon, people go to credit unions, banks and other financial institutions. Some other kinds of loans such as small business loans are available only to a selected group of people. It is always advisable to take a loan only after analyzing your repayment ability and the carefully researching about the lender.

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Parul Mahajan is a Post Graduate in Gender Studies from Ambedkar University, Delhi and also holds a Bachelor of Arts degree in English Literature from Daulat Ram College, Delhi University. She is the author of ““Warring Over Religion and Feminism”, a Masters level Dissertation. Parul has also interned with Vimochana, a Bangalore based women’s organization working on various women’s issues.


  1. This article explains about the credit cards and the loans. These both are the different kinds of methods of getting cash at the time of urgency. There are many pros and cons of using a credit card. There are different kinds of loans. The further details are explained in the article.

  2. A good artice lucidly explaining about credit cards and loans. As mentioned, one should not take credit cards for granted. One should handle them responsibly. Before taking a loan check on important points like the credibility of the institute, interest rates and your capability to repay the loan including the EMI.

  3. Credit cards have become a rage in today’s scenario. While it has become a must in some places. It is very convenient while travelling plus the incentives by the card issuer is worth it. Loan is the deficit amount borrowed to fullfill any present situation. It is always not taken for emergencies we also take loan to procure any assets, travelling .

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