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Personal Loan vs Gold Loan – Quick Pros and Cons to Help You Decid

Are you in a fix between a personal loan vs gold loan? Then, you are not alone. Many people who are in a quick need of money may be confused between a personal loan vs gold loan. Thus, if you urgently need some money and in a fix when it comes to choosing a mode to help you, then here is a quick post that can help you. Read on!

Gold loan and a personal loan online facility are two leading and suitable financing solutions when you need money super quick. However, you should go through both of their advantages and disadvantages to make a quick decision. Have a look!

Gold Loan Benefits

  1. Easy and quick processing

The processing of the gold loan is fast and hassle-free. Most banks and NBFCs offering you the money in lieu of the gold need only basic documents. The process is free from too many complications. In most cases, you can get an instant personal loan online

  1. No Credit history required

With gold loans, you don’t need any Credit history to get the loan money. Hence, you can get the loan amount quickly and get a chance to enhance your Credit history.

  1. A lower rate of interest

The rate of interest on a gold loan is much lower when compared to other loan types. It means you don’t need to shell out more amounts at the time of loan repayments. It is one of the major reasons people prefer gold loan.

 

Gold Loan Disadvantages

  1. Higher margin

Banks may offer you a loan of up to only 75% value of the gold. Hence, it means that the remaining 25 can’t be monetized and is utilized towards the lender’s margin.

  1. Loss of asset

A gold loan is a secured loan. It means that your asset is at the discretion of the lender to be liquefied if you don’t repay the loan within your scheduled tenor.

  1. Smaller tenor

Most of the reputed lenders offer the loan for a period as lower as less than 2-3 years. Thus, for availing higher loan amounts, the EMI amount may hamper your expenses.

 

Personal Loan Advantages

  1. No collateral or security

It is the greatest advantage of a personal loan, and you don’t need to keep any collateral or security to secure the personal loan. It is given as per the matching of the personal loan eligibility criteria and your financial profile comprising CIBIL Score, repayment and employment history. Hence, most of the borrowers opt for the personal loan online facility.

  1. Versatility of Usages

You can avail a personal loan online facility for reasons such as weddings, down payment on a new home, family vacations, debt consolidations, business expansions and more. The only thing it is not allowed for is indulging in the gambling and other illegal activities.

  1. Minimal Documentation

You only need to submit some basic documents related to your personal and professional profile to meet the personal loan eligibility criteria easily. Once you have the required personal loan eligibility, you can get the loan approval quickly.

  1. Super Quick Disbursement

Most of the leading lenders disburse the loan amount within 24 hours after the approval of the personal loan online application.

 

Personal Loan Disadvantages

  1. A higher rate of interest

Many borrowers don’t apply for a personal loan because the personal loan interest rates are higher because of the unsecured nature of the loan. Banks charge higher personal loan interest rates as the risk of defaulting on the loan is higher by a borrower.

  1. Credit history

All known lenders conduct an inside out inquiry about the credit history of the borrower. The personal loan eligibility criteria of some banks may also be complex to keep many borrowers out of the picture availing the personal loan online.

You are now aware of the pros and cons while juggling between the personal loan vs gold loan and the above points should have helped you to make a decision.

Bajaj Finserv gives you some pre-approved deals on personal loans, home loans, business loans, EMI finance, credit cards and more. Such offers are to simplify your loan processing by making it less time-consuming.

You only need to submit your basic credentials such as your name and mobile number to check out your pre-approved loan deals right away

Also: Three Easy Steps to Get a Quick Personal Loan Online

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personal loan online, personal loan online, Personal loan vs gold loan, Personal loan vs gold loan, personal loan eligibility criteria, personal loan eligibility criteria, personal loan interest rates, personal loan interest rates,

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