Which one is the best option between the Gold loan and the Personal loan?

apply for gold loan : The foremost objective of a loan is to give money to those people who want money. Then later, people return the money to the bank or lending companies. People want money for many reasons like for medical emergencies, study purpose, wedding purpose, etc. You can either go for a personal loan or apply for gold loan. You have to be careful before applying for any loan. The loan services are for the people and their betterment. So, every citizen should read about every loan terms. You must read about and compare every rate of interest before going to any bank and NBFCs. Some people might think that a gold loan is the best option, and you should apply for gold loan. A gold loan is a secured loan, and you bring your gold jewelry as a security to get money from the bank or NBFCs. You won’t get your gold back till you repay the money. The gold loan has its advantages than the personal loan.

Benefits of a gold loan:

There are a few advantages over the personal loan. A personal loan has its limitations in the amount of money.  A gold loan is a great option if you have a bad credit score because credit score doesn’t matter.

1) Minimum documentation needed: Unlike other loans, the gold loan requires minimum documentation. Most banks just ask for you to provide address proof and two photographs. In the gold loan, you are giving your gold as leverage or as security, so, other factors like credit score, income won’t be needed in your documentation.

2) Processing is fast: The processing time in applying for a gold loan is fast, and there are no processing fees. The person who wants a gold loan can approve fast in a few hours because of minimum documentation. So, the better option is to apply for gold loan because the disbursal of money is fast.

3) Rate of interest is low: If you compare the rate of interest with other loans, then you will get to know that the rate of interest is low in a gold loan. The gold loan is secured, and the rate of interest is lower than the unsecured loan. The rate of interest depends upon every bank. People must read every bank’s rate of interest before applying.

4) Income proof and credit history are not required: Unlike other loans, the gold loan does not need any income proof and your bad credit history. Banks do not need to know about your repayment capacity and your income, because a gold loan depends upon the market value of gold. The loan amount in a gold loan depends upon gold’s market value. So, your income and credit history does not matter in a gold loan.

You can see why a gold loan is a better option than a personal loan. A personal loan has its advantages because a personal loan is an unsecured loan and there is flexibility in repayment of a personal loan. It is easy to apply for gold loan and can approve fast.

Disadvantages of a gold loan:

 The main disadvantage is that if a bank finds any default in your gold, then they can freeze your gold. So, a person should check everything about the gold and its market value because if a bank finds something unusual you can lose your gold.

Apply for gold loan with rokdabazaar and you can get the best deals and offers. Talk with our specialist and get the best advice about any loans.