Gold Loan vs Personal Loan
Many people are on the lookout for the easy and efficient way of getting cash on short notice, for their own purpose, so they may come across two different alternatives that are Gold Loan Vs Personal Loan. Both are similar when it is considered on the line of the interest rate as well as quick approval and disbursement, but still, there are some differences, that’s why one of these is considered more beneficial than the other.
Gold Loan and Its Benefits:
Gold is one of the most precious and costliest metals in the country. The Loan is the financial aid that banks provide to the lender by keeping their gold as security with the bank. Gold Loan is considered one of the most secure types of loans because if a person fails to repay his loan than the bank has the right to use that gold.
Benefits of Gold Loan:
- As compared with some other forms of credit, Gold Loan requires less amount of documentation. It just requires two photographs, any ID proof, and residence proof.
- In the Gold Loan, no CIBIL score is required means any person can apply for this loan whether that person has a good CIBIL score or not.
- The Gold Loan Interest Rate is less as compared to other credit.
- A person will get 75% of the gold value as the loan amount which is more as compared to the personal loan.
- Gold Loan has flexible repayment formats. A person can repay them in three different formats:
- The borrower can pay the interest in the beginning, and can pay the principal amount at the end of the loan tenure.
- The borrower can repay the amount throughout the tenure on a monthly basis and can pay the whole principal amount at the end of the loan tenure.
- The borrower can pay both, the interest as well as the principal amount at the end of the tenure.
- Apply for a Gold loan from Dialabank and avail the best offers because of Gold Loan as the best option. various banks such as HDFC Bank, Axis Bank
Personal Loan And its Benefits:
The money is used for personal use as it can be used for marriage, medical emergency, trip, etc. The Personal Loan is the unsecured finance that does not require any collateral. A person can get a loan on the basis of his monthly income, banking history, etc.
Benefits of Personal Loan:
- The Personal Loan also requires less amount of documentation, a person just has to upload their e-documents when applying online for a loan.
- The tenure of Personal Loan can easily be availed for a minimum of 1 year and a maximum of 4 years.
- The Personal Loan provides doorstep services to their customer, they don’t have to visit a bank.
Gold Loan vs Personal Loan? What to choose?
Both the loans have their own benefits and limitations, but one should opt for that loan which suits their need. If a person wants to repay their loan at a slow and steady pace then he can opt for Personal Loan.
But if your CIBIL score is notably than the average then they may opt for the Gold Loan, as it is quick access to some additional funds. Hence, the Gold Loan Vs Personal loan can be summarised as if you have collateral of any Gold jewellery or ornaments will provide you with the Gold Loan instantly. Otherwise, you have a Good CIBIL score to avail of the personal loan.
So ins short you can avail the best offers on both loans as per your need. If you possess some gold ornament it’s easy to apply for a Gold Loan and avail the best offers on gold loan. Otherwise, if you are unable to provide any security Can apply for a personal loan.
Read Other Related Articles
|Don’t commit These Mistakes While Availing Gold Loan|
|Your Gold Is Your Best Friend|
|5 Tax Filing Mistakes To Avoid|
|Ways you Could Lose your Tax Benefits|