Gold Loan vs. Personal Loan - Which One Should You Choose?
Gold Loan and Personal Loan are two convenient financing options when you need money at a short notice. Read both their advantages and disadvantages in detail before you make your decision.
Gold Loan
- The loan approval and disbursal process is swift and easy.
- Credit history is not needed, since it is a secured loan.
- There are flexible repayment options.
- Lenders usually offer 75% of the gold value as loan and the 25% high margin is kept with them.
- In case you fail to repay the loan, the lender can liquidate your asset to recover the money.
Personal Loan
- This is a loan without a security deposit, so you do not have to pledge any collateral to apply for a personal loan.
- With a Flexi Personal Loan, you can borrow when you want from a sanctioned loan amount and pre-pay when you can.
- You need to fulfill simple personal loan eligibility criteria.
- Minimum documentation is required and once the document verification is done, the amount is disbursed to your account within 24 hours.
- Make sure you have a good credit history above 700.
Additional Reads:
How to check CIBIL Score for Personal Loan?
What are the documents required for Personal Loan?
How to prepay Personal Loan?
What is Letter of Continuity?
