Many of us have this common query on which loan is better, is it a Gold Loan or a Personal Loan? Well it depends on certain conditions. We mostly hear from the Gurus that Gold Loan is obviously a better option than opting for a Personal Loan. But many of us might not know the reason behind such. Let’s try figure out how and why!
We can majorly have two reasons to choose Gold Loan over Personal Loan, these are:
1. One doesn’t need to show any proof of income or have to be a salaried person to take loan against gold. Anyone who has gold can apply for the gold loan. On the other hand, one needs to submit lot of income proof and other related documents to opt for a Personal Loan.
2. The second big advantage is the Low Interest Rates. Gold Loan interest rate typically varies from 12%-14% per annum while Personal Loan interest can be much higher than that of the Gold loan interest rates.
These are two big reasons which make Gold Loan much easier and feasible option for the one who is o finance the assets such as Education, Business, Real Estate, small business set up or any other Investments.
Other than this there are several other reasons to be considered Gold Loan over Personal Loan.
- Loans given in as little as five minutes
- Loan amount could be 60-80 percent of market value of gold depending upon terms and conditions of different financial institutions.
- Flexible interest rate according to time period and loan amount depending upon terms and conditions of different financial institutions.
- Assured security of gold jewellery.
- Zero Processing fees.
One has to produce minimum documentation for Gold loan. Only a valid ID proof, address proof and passport size photo is all you need to get the loan against your Gold.
So now you know that Gold Loan is a good alternative to personal loan. It helps you pay off short term liabilities, credit payments and also in emergency needs. Gold Loan can be a good option for small businessmen to use it as working capital. This way gold loan is surely a better option than personal loan, if you are sure that you would meet the payments regularly.
Benefits of Gold Loan, Description of Gold Loan, Gold Loan, Gold loan business in India, Required documents for gold Loan, Why gold loan business will be a hit in India?, Gold loan or personal loan.