personal loan vs gold loan

In case of urgent requirements of cash gold loans and personal loans are the best option. The reasons are they are easy to get, quick loan disbursal, and you can use the loan amount for any purpose. Creditworthiness is checked in both types of loan but there is some provider of gold loan in Uttam Nagar, Delhi who provide gold loan without any credit score. A gold loan is a secured loan where you have to put your gold ornament as collateral. A certain percentage of gold is given as a loan amount. Various options are given to repay the loan amount. When the loan is paid off, the lender returns the gold to you.

A personal loan is an unsecured loan. There is no need to put your asset as collateral. Usually, the interest rate is higher as compared to gold loans. You can repay the loan amount in EMIs.

Personal Loan Vs Gold Loan-

Let’s understand the basic difference between a gold loan and a personal loan to figure out which is the best option for you.

Also Read: What are the Benefits of a Personal Loan?

Interest Rate:

The interest rate on gold loans is usually lower as compared to a personal loan. You can take both types of loans at a lower rate of interest if you have a good credit score. If your credit profile is not good, a gold loan will be a better option for you.

Tenure of Loan:

The period of repayment of a personal loan is longer than a gold loan. If you want a longer period you can go for a personal loan. If you can pay the loan amount in a short period gold loan is a cost-effective choice.

Loan Amount:

A personal loan can be repaid in monthly EMIs. On the other hand, different repayment options are given in the case of a gold loan.

Repayment Options:

A personal loan applicant needs to submit a number of documents. It takes some time for the documents to be verified. In the case of a gold loan, the loan amount is disbursed on the same day after checking the authenticity of the gold.

There are some providers of personal loans and gold loan in Delhi that provide loans on easy terms. It all depends upon borrowers’ needs and preferences. If you need money for a short duration, a gold loan is a way to go. For a longer period of time, a personal loan is a right choice.

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