All About Gold Loan vs Loan Against Property
When you are facing any financial crisis and need finance immediately at a good and reasonable interest rate, then a secured loan is the best way to overcome all your problems. A secured loan is a service in which the applicant has to submit any asset as collateral, for example, gold, property, deposit, and gold stock, in return of loan amount. After the completion of the loan, the asset is given back to the borrower. There are many secured services available with us, but the most availed secured services are Gold Loan and Loan against Property. Let’s Discuss Gold Loan vs Loan Against Property.
Loan Against Property
A loan that you get against any commercial or residential property is known as a loan against property. Take a glimpse at the major highlights of loan against property:
- Loan against property can be availed for tenure from 10 years to 15 years.
- Before sanctioning the loan, property evaluation is essential and the assessment is done by an evaluator of the bank.
- In such loan your commercial or residential property act as collateral.
- The loan sum will be just a settled rate (more often than not between 40 to 60%) of the property value as dictated by the evaluator.
- The property documents are kept with the bank until the return of the loan amount.
- Apart from residence proof, identity proof, and documents of property, the candidate needs to submit income evidence as required by the lending institutions.
- The imminent bank checks out the credit report before allowing loan.
- More reasonable for higher credit sums as the reimbursement duration is very long.
- In the event that the property utilized as security is co-possessed, the co-proprietors will highlight as co-applicants.
A type of secured service which helps the applicants who aspire to seek a loan to overcome their crisis on the low-interest rate. To begin with, you will just have to submit your gold ornaments in the bank as security in return of cash. After the loan is repaid, the customer is returned the ornaments. Following are the key highlights of this service:
- To start with, The system of security in the banks is so strong that the ornaments are safer in them in comparison to our houses.
- Also, the loan approval is very quick of this service.
- In addition to other features, the term loan facility is provided that helps the applicant to pay only the interest rate for the tenure of the loan.
- Most importantly, the rate of interest is very less in comparison to other services provided by the banks and NBFCs.
- Moreover, the bank charges a very minimal amount for the application of gold loan.
- Furthermore, The formalities that are to be completed are very less due to the type of service this is.
- Last but not least, the applicant can choose the tenure depending upon the need.