HomeBusinessGold loans or Personal loans: Guide to choose between them

Gold loans or Personal loans: Guide to choose between them

To meet the urgent financial needs of helping people meet their needs, there are two convenient loan options: personal loans or gold loans. Here we compare the characteristics of personal loans and gold loans available to customers. Interest rate: The personal loan has a very high interest rate. For people with poor credit ratings, the interest rate on gold loans is usually lower than the interest rate on personal loans.
For people with good credit status, the interest rate difference between the two loans may not be equal to the loan amount: the acceptability of the loan amount set by the lender mainly depends on the applicant’s solvency and loan period. Personal loans are usually between 50,000 and 1.5 million rupees, with some lenders claiming to have repaid most of the rupees. From 3 million to 4 million.

Withdrawal time-To process the loan application, the borrower must provide its ITR/withdrawal receipt and other documents when submitting the personal loan application. It may take 2 to 7 days to issue a personal loan, as these documents usually take some time to review. With prior approval, some lenders claim to provide faster personal loan repayments.

Term: Some lenders offer a term of up to 7 years, while personal loans usually have a term of 1 to 5 years. For most lenders, the term of gold loans is usually short, with the longest term; some lenders offer a slightly longer term, about 4-5 years. Poor credit status-Due to the insecurity of personal loans, lenders will quickly become cautious.

Personal information, employer information, etc. are mainly considered when approving personal loans. Based on credit status, some lenders have also begun to set interest rates for personal loan applicants. 2% of the loan amount, some lenders charge a fixed fee of 10 rupees or more. The loan handling fee is between 1% and 3% of the loan amount.

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