Personal Vs Gold Loan: Do You Know Which Is Better Between Personal Loan And Gold Loan?: We take loans from banks, non-banking financial institutions, or known friends and relatives, and then pay them back as soon as we receive the money. Sometimes in life a person suddenly.
We take loans to meet financial needs. We take loans from banks, non-banking financial institutions, or known friends and relatives, and then pay them back as soon as we receive the money. Sometimes in life there comes a time when a person suddenly needs money. With the changing times.. people now follow different methods to get emergency funds. These include personal loans and gold loans. But the help of these loans is also taken to start a business or to get out of any financial crisis. But, many times people get confused about which option to choose between personal loan and gold. So today there are some important things to know about both loans. Then you can clear your confusion. Know about this.
- This loan requires more documents. In a personal loan, you don’t have to mortgage any of your assets. But in a gold loan, you get the loan by pledging gold. You have to submit a lot of documents for a personal loan. It requires the submission of many documents like income proof and ID proof. On the other hand, in a gold loan, you can easily get a loan by pledging only gold.
- There is also a difference in processing fees. Checks your overall background in personal loan. Due to this, the personal loan processing fee is very high. Financial companies or banks charge a high processing fee on personal loans ranging from 0.5 percent to 1 percent. On the other hand, when you take a gold loan, you are pledging your gold. In this case, you don’t need to pay any processing fee.
- The gold loan will be available soon. Nowadays banks and financial companies like to give gold loans to customers. The biggest reason for this is that it is considered a secured loan. If the customer does not return the loan money.. in such a situation the company or bank can sell his gold and recover his money. Due to this, approval is obtained as soon as possible.
- Gold Loan Repayment is Easy Repayment of gold loans is easy as compared to a personal loan. In this, you get various repayment options. You can repay this loan slowly.
- Let’s find out how the interest rate differential works. Banks offer gold loans at very low-interest rates. The interest rate on a personal loan is very high. The biggest reason for this is that a gold loan is a secured loan. This results in lower interest. A personal loan is an unsecured loan. Because of this, banks and financial institutions charge high-interest rates on it.
