1. Gold Loan and Loan against Property are secured loans
2. Gold loans have a shorter tenor
3. Gold loans have higher interest rates
4. Loan against properties offer the higher loan amount
Gold Loan and Loan against Property Introduction
If you are in Financial Jam and need immediate funds to fulfill your dreams then you should go for Gold Loan. It offers high funding to the customers and fulfills your immediate need for funds. It offers quick disbursal and provides instant approval. It helps in generating cash which helps you in fulfilling personal needs, business expansion, and education loan as well as for agricultural purpose etc. Gold loan offers easy processing and minimum documentation.
If you suffering from money cries, in that case, Gold Loan or Loan against property (LAP) can be the answers that you are looking for. If you are wondering which one of the two will be more fruitful in your situation, then you are in the right platform. We are here to help you out which one is a good option from your need.
Loan sanctioned against Gold is known as a Gold Loan. If you are in Financial Jam and need immediate funds to fulfill your dreams then you should go for Gold Loan. They can be availed against gold ornaments and coins. The loan amount is depending upon your gold weight. Often, you get around 75% of the gold’s value as loan as per RBI rule. The gold is in the custody of the lender until the loan amount is repaid. Moreover, the tenor of gold loans is much shorter as compared to loans against property. Besides that, you can easily repay your amount in 4 Different Ways of Repaying Your Gold Loan. Moreover, the falling gold prices have led to an increase in the interest rates of the loan.
1. First of all, the finances of gold loans can reach up to the mark of Rs. 1 Crore.
2. Secondly, the banks and NBFCs will provide full security and safety to the gold deposits of the applicants.
3. Another thing about these loans is that these loans have minimum processing time.
4. Moreover, any portion of these loan amounts can be taken out at any time of the tenure.
5. In addition to the above, no EMIs have to be paid by the applicants in these loans. The applicants only have to pay the interest rate timely.
6. As well as the requirements of documentation in these loans are minimum.
7. Next, the feature of over-draft gives the freedom to the people to use the loan amount accordingly.
8. Lastly, the interest rate is applied to the portions of the loans used.
Loan against Property
A loan against property can be getting against both residential as well as commercial properties. They have a long tenor and a loan amount up to 70% of the market value of the property can be availed as a loan. If the market value of the property is in high amount then you can get a high loan amount. Since the interest rates on loan against property are quite low in comparison to other loans.
1. Loan sanctioned against any commercial or residential property is known as Loan against property.
2. It features tenure of 10 years to 15 years
3. Property evaluation is needed before the loan is approved and the evaluation is taken out by an evaluator confirmed by the considered donor.
4. Each commercial or residential property may be utilized as security.
5. The loan value will be only a fixed percentage of the property value as decided by the evaluator.
6. The property documents have to be saved with the bank till the loan and accumulated interest is paid off in full.
7. Aside from address proof, identity proof, and property documents, the applicant also needs to propose various income proof records as required by the lending institution.
8. A credit report check is made by the considered lender before giving the loan.
9. More proper for higher loan amounts as the repayment tenure is quite high.
10. In case the property used as security is co-owned, the co-owners will emphasize as co-applicants.