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Which financing facility must you go for? Personal vs. Gold Loan

From the organized banking sector, there are some attractive financial options which offer the flexibility of a personal loan when you require some funds for an emergency in a short period of time. However, secured loans like gold loan are emerging as a great alternate to personal loans, which is due to the dual advantages of lightning-fast disbursal and minimal documentation. Both types of loans have their own pros and cons and they might prove beneficial or can even become a burden for an individual.

It is strongly recommended by the experts, that before finalizing your decision, you must thoroughly compare the options across different lenders and loan products. Then choose the one which best meets your need and even offers the best repayment term.

Here are some important points to consider, if you are wondering which best suits your requirement:

Gold Loan: This is a secured loan you all are eligible to apply for it, if you can pledge your physical gold in the form jewelry. It is a great option for money requirement but for a short-term or if you want to raise funds in a hurry. Before going for gold loan, you must check the gold rate on that day, as bank will pledge your gold items on that rate.

• Swift and easy processing

The processing of gold loan is faster and easier as well. NBFCs and banks which lend in lieu of gold items need only the basic documents and process is free from any complexities. Mostly loan disbursement can be completed just in few hours.

• Low interest rates

Rates of interest on gold loan are lower as compared to personal loans. This is one of the main reasons why gold loan is better than personal loan. While pledging gold you just have to consider the gold loans per gram rate.

• No CIBIL or credit history required

When procuring instant gold loan, banks do not check your credit score, as it is important in taking personal loan.

Personal Loan: This is an unsecured loan which is ideal for short-term financial commitment. Personal loan is popular among individuals to meet urgent financial need.

• No collateral

This can be the biggest advantage of a personal loan. Borrowers need not keep any kind of asset like gold, life insurance, property, etc. as collateral with the lender or bank when giving a personal loan.

• Minimal paperwork

Personal loans do not need elaborate paperwork. You just have to provide KYC information documents along with income proof.

• Versatility

Personal loans could be procured for several purposes such as home renovation, wedding, family vacation abroad. In fact, the only things which are not allowed are illegal activities and speculative.

Rate of interest in case of personal loan is higher and that is one of the reasons why gold loan is a better and more viable option for those that require funds.

To conclude, consider the above pointers well to find out whether gold loan is better or personal loan as both have their own unique features. It totally depends on an individual’s specific situations and requirement.

Rupeek, we provide best gold loans solutions in market at the lowest gold interest rate, minimal processing fee. Enjoy a hassle-free online gold loan experience in India.