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Is Gold Loan cheaper than a Personal Loan?

Credit can be an exceptionally valuable monetary device for individuals who need cash to buy assets for investments or to make lavish purchases or for bad times when they are short on money and need it for emergencies. For instance, assuming you are intending to purchase a house, you may apply for a new line of credit from the bank. Fundamentally, there are two different kinds of loans: secured and unsecured. A good loan is one that is upheld by a resource that the borrower possesses, like their home or vehicle or gold. An unstable or unsecured credit is one that isn’t upheld by any resources whatsoever. It is always recommended to go for a secured loan until and unless it is an extremely critical situation. And when it comes to seeking secured loans for shorter time durations, there is no better option than seeking a gold loan. Although there are many advantages of getting a Gold Loan, for this blog we have chosen the best reason to talk about i.e. Rate of Interest. One of the widely asked questions is why not seek a personal loan instead of a gold loan, so today we are going to break it down bit by bit. Here is a brief comparison of a gold loan to a personal loan based on different parameters.

1. Loan approval and disbursal process:

While the loan approval and disbursal process can take up months in the case of a personal loan, it is less than 24 hours if you use Rupeek.com. Rupeek is an amazing site that offers you the best gold loan for your gold assets. They have a wide array of customizing options available that enhance the user experience.

2. Credit Score: 

Credit scores usually pose a problem if you have not paid back your previous loans timely due to any misfortunes. But in the case of a gold loan, your credit score does not even matter.

3. Repayment options:

While the repayment options are quite rigid in the case of a personal loan, you can repay your gold loan as a lump sum amount if you want, with no hidden charges on Rupeek.com. You can visit Rupeek to seek a gold loan in delhi and in fact anywhere across India.

4. Interest rates: 

The personal loan financing cost generally goes from 10%-24% p.a., contingent upon the bank and candidate’s credit profile. Gold loan financing cost can generally go between 7.00%-29% p.a. contingent upon the danger appraisal of the loan candidate by the bank, loan residency, loan sum, and reimbursement choice picked. While there may not be a significant difference in the rate of interest for a person with a good credit score, the difference is quite big for someone who has not cleared backlogs of his loans in the past, or repaid his loan but, not on time. In such cases, gold loans seem to be a savior. Instead of paying high-interest rates (up to 24% p.a) on personal loans, you can instead opt for a gold loan backed by your jewelry assets.

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