In case of personal loan, no security is provided to the banks. Borrower’s income verification papers are checked. As a result, banks charge processing fees for personal loans. It can be 0.5 percent to 1 percent. So, in case of gold loan, borrowers are not required to show income proof documents while applying. They use the gold they have as security. Hence no processing fee is charged.
Multibagger Stock: The chemical company’s stock has become a rocket! 17 stocks at Rs 3000
Gold loan process is easy
All documents from income proof have to be submitted while availing personal loan. So its process is long and time consuming. At the same time, the gold loan process is simple. Borrowers sign several forms and submit their gold valuables as security. After that the loan amount is sanctioned.
‘These’ options will be profitable for less investment and higher returns, higher interest than bank FD
Gold loan repayment options are more flexible as compared to personal loans. Gold loan borrowers can choose from various loan repayment modes. Gold Loans offer several solutions to increase your repayment capacity, giving you a better chance of repaying your loan.
Interest rates on personal loans are much higher than gold loans. Because in this gold loan is secured loan and personal loan is unsecured. The most important difference between these two types of loans is the interest rates.
Marathi News, Breaking News in Marathi First on News18 Lokmat. Read today’s latest news, live news updates, first on trusted Marathi news website News18 Lokmat.