Gold loan vs personal loan: Which one should you choose?
2 min read
A gold loan and a personal loan are two convenient financing options when you need money at short notice. Read their advantages and disadvantages in detail before you make a decision.
Gold loan pros and cons
- Since this is a secured loan, lenders usually offer up to 75% of the value of the gold you offer as collateral.
- The loan approval and disbursal process are swift and easy.
- Your credit history or score is not critical since it is a secured loan.
- You have flexible repayment options
- If you fail to repay the loan, the lender can liquidate your asset to recover the money.
Personal loan pros and cons
- This is an unsecured loan, so you do not have to pledge any collateral to apply for a personal loan
- Just fulfil simple personal loan eligibility criteria to get funds. Make sure you have a good credit score of 685 or higher to get the loan with ease
- Submit minimal documentation, and once the verification is done, the amount is disbursed to your account within 24 hours* of approval
- You can select your repayment duration ranging up 1 to 5 years based on affordability
- With a Flexi personal loan, you can borrow when you want from a sanctioned loan amount and prepay when you can. This also helps you lower your EMIs by up to 45%* when you choose to pay only the interest as monthly instalments
*Conditions apply
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