Gold loan or personal loan which better in financial crises mhpw

Mumbai, September 4: Loans are often the first option when money is needed. As personal loans are now easily available, people rely on them in times of financial crisis. But along with this, the demand for gold loans is also increasing rapidly. Let’s get information about personal loan and gold loan which one is better. If you take a personal loan, you don’t need to take any mortgage. In case of gold loan, gold remains as collateral. That is, you are getting a loan in exchange for pledging gold. A personal loan requires you to submit a lot of documents. Income proof, proof of residence and other proofs. All these paperwork hassles are absent in gold loans.

processing fee

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.

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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.

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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 rate

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.

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The article is in Marathi

Tags: Gold loan personal loan financial crises mhpw

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