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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