Sometimes it is very confusing whether you should go for a personal loan or gold loan. If you are eligible for both loans then it is a very big dilemma to choose one. Both loans provide you financial help in your bad time. Besides that, both loans are available easily nowadays. There are so many banking and non-banking financial organizations that provide you with a gold loan and personal loan as well. There are pros and cons of both let us discuss them one by one. But before that let us discuss what personal loan or gold loan?
A personal loan is the kind of loan that is used to fulfill your personal needs. This is an unsecured loan. Here you don’t need to pledge anything to the lender. It is based on your salary and credit score. You can use this loan to meet any of your personal requirements. It is easy to avail too.
A gold loan is a kind of loan in which you get a loan against your gold. Gold is been considered a part of aesthetics for ages. Besides that gold is very precious and costly too. So it has good market value too. So each and every bank provides you a gold loan. They keep your gold as security and whenever you return the loan back they give you back your gold. They are liable for the security of your gold.
Advantages of Personal loan or gold loan
There are some advantages to a personal loan.
- First of all, no collateral is required in personal loans. Bank provides your personal loan on the basis of your salary and CIBIL score.
- Besides that personal loan is hassle-free.
- One more important thing is that it is a multi-purpose loan. You can use a personal loan for various purposes, whether it is related to your business or educational purposes.
- A personal loan is disbursed very quickly. If you are eligible and have all the documents then you can get a personal loan in very less time. Your loan will disburse in 72 hours.
- Documentation required in the personal loan is very easy and basic.
Disadvantages of Personal Loan
There are some disadvantages to the personal loan as well.
- If your CIBIL score is not good you will have a problem in getting a personal loan. Because banks consider your credit history while providing you a personal loan.
- Besides that, if you want to close your loan then you have to pay some penalty charges for this. It means there is a fee for the pre-closure.
Apply for a personal loan online with Dialabak and easily get the best offers and instant approval.
Advantages of Gold Loan
The gold loan comes with lots of benefits.
- The first advantage of the gold loan is that it is a very hassle-free process. There is no need to bother because it is a very easy process.
- Besides, those lenders do not check your credit history while giving you a gold loan. It does not matter whether your CIBIL score is good or bad.
- There are no pre-payment charges in the gold loan.
Disadvantages of Gold Loan
There are some disadvantages to gold loans too. Let us discuss them one by one.
- The first drawback of gold is that you need to have gold in suitable forms. Like some banks accept only jewelry, some do coins too. So there are different criteria regarding the physical form of gold.
- Besides that there a big risk of your gold assets. In any case, if you would not be able to return your loan back you have to lose your gold assets.
- One more disadvantage is that the tenure of your gold loan is very less.
- One more disadvantage is that gold of purity 22 Karat is required.
One must choose a wisely personal loan or gold loan which one is best suitable. There is a distinction among personal or gold loans about collateral or security pledge, as one can avail of a gold loan when you have some gold ornament. on the other hand personal loan can be accessed without any security. So select the best offers with Dialabank on a personal loan or gold loan.
Apply for a Gold loan from Dialabank and avail the best offers because of Gold Loan as the best option.
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Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.