To be honest, 2020 and 2021 has not been an easy year for anyone because of the COVID-19 pandemic. While on one side thousands of people lost their relatives and loved ones to the Coronavirus, on the other side businesses had to suffer huge financial losses and crises. The bigger sharks of the market somehow managed to survive on the huge reserved sums, but the small ones faced situations that even cost them a shutdown forever. Amidst such chaos when people were seeking loans to recover from their debts, survive or manage their operational costs, gold loans surfaced as a great alternative to personal loans. People started comparing the two on different bases, and almost in all of the cases, the gold loan stood out to be one of the better alternatives amongst the two.
Today in this piece of our blog we are going to discuss different factors and compare Personal Loans with Gold Loans and will try to tell our viewers how and why gold loans are way better than personal loans. So, you stay with us as we walk you through his informative blog.
Purpose of usage
At the point when you want cash at a more limited time, both the gold loans and the personal loans prove to be useful as both the monetary offices don’t have any end utilization limitation on loans which makes them the favored choice. Notwithstanding, you need to pick between the two as indicated by your monetary necessities.
Processing Time for loan disbursal
A gold loan is a secured loan and the disbursal time is extremely speedy in this sort of loan. For the most part, the sum is credited to the borrower’s record within 24-48 hours. A personal loan application authorization may take up to 10 days, as the borrower is needed to present their payslips, bank proclamation, and other related reports. Later accommodation of the archives is confirmed, which expands the disbursal time.
Rate of Interest
Gold loans are secured loans, so the financing cost on the gold loan is lower and starting from 5.45% per annum with Rupeek. Rupeek is possibly the best platform for you to get an online gold loan. It offers you all the services at the comfort of your doorstep with the lowest rate of interest on gold loans. Although, the financing cost of a Personal loan goes from 11% to 25% per annum. Assuming you have a terrible FICO rating, you ought to consider a gold loan as banks don’t check financial assessment if there should be an occurrence of a gold loan and charge a higher pace of revenue on a Personal Loan for a low FICO rating.
The best thing about gold loans is that it doesn’t require your FICO score (credit score) for qualifying the eligibility criteria, unlike personal loans where not only your eligibility to get the loan but also the rate of interest that would be imposed on you depend on your credit score.
Processing charges for the loan
Deciding on the handling expense assists you with concluding which loan to take. Gold loans accompany negligible handling charges as low as Nil and a few moneylenders charge 0.10%-1% of the loan sum. In close to home loans, the handling expenses increase to 2.50% of the loan sum.
To check the maximum loan amount that you can claim on your gold jewelry, you can use Rupeek’s gold loan emi calculator. A calculator is an amazing tool that tells you all the insights of your loan so that you can decide your desired tenure or EMI or rate of interest for the gold loan.