Personal loan vs Gold Loan: Which is a better option for you?

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Personal loan vs Gold Loan: Which is a better option for you?

In the midst of this epidemic, people are facing financial problems, and when they need money at short notice, both gold and personal loans are the easiest way to go.

When choosing a loan, if you are confused between the two options, first find a time when you need a loan. If repaying a loan within a few days or weeks, a Development Credit Bank Gold Loan is a better option. If a long stay with EMI is the preferred payment method, then a personal loan is a better option.

Therefore, when deciding and choosing between gold and personal loan options, assessing the repayment period, the length of the loan, and the interest rate are important factors. Gold loan removes the difficulty of qualifying procedures, and anyone can use their gold ornaments and raise the loan immediately. Also, eligibility is ubiquitous – a paid person, a business person, or a home-based maker. Any Indian citizen over the age of 18 is eligible for a gold loan. Experts say that if there are no income-related documents, then a gold loan is the best option for each individual.

Praveen Kutty, Head-Retail and SME Banking, DCB Bank, says, Cultural investment in gold ornaments to help the rainy day is focused on the Indian psyche! The borrower pays interest on the loan amount used, in contrast to the personal loan situation in which the EMI is repaid on all loans disbursed.

Having said that, remember when choosing a gold loan that gold must be guaranteed by the bank or NBFC, and as a borrower, you will not be able to access gold until payment. Moreover, only gold ornaments can be sworn. Other types of gold such as ETF and Bullion cannot be obtained in the event of a gold loan. The value of a loan depends on the market value of the gold and the credit-to-value ratio (LTV) is used by lenders.

Amidst the current crisis, gold loans are proving to be particularly good for securities, especially for small SMEs with urgent financial needs. One can estimate the estimated loan value based on the value of gold and there is no need for proof of income as in the case of a personal loan.

In today’s time where so many lenders have come up with their exciting deals with the offering of Gold Loans, it has become difficult for the borrowers to decide and select one single lender that suits their needs and situations the best.

We at Dialabank with a team of experts in the financial advisory are here to guide you through the various financial products available in the market.

Call us today to get your queries resolved- 9878981144

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