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Personal vs Gold Loan: Which option is better to choose between personal and gold loan!

Personal vs Gold Loan: Sometimes there comes a time in life when a person suddenly needs money. With the changing times, people now have many options for getting an emergency fund. Two of these very common options are personal loan and gold loan. Nowadays people are also taking the help of these loans to start a business or to get out of the financial crisis in the Corona epidemic.

But, many times people get very confused about personal loan and gold which one to choose. So let us tell you some important things about both the loans today. Then you can clear your confusion. Know about this-

1. This loan requires more documents
Let us tell you that in a personal loan, you do not have to mortgage any of your assets. Whereas in a gold loan, you get a loan against pledging gold. In such a situation, you have to submit many documents in a personal loan. In this, you have to submit many documents like income proof, ID proof etc. Whereas in gold loan, you can easily get loan by pledging only Adi and gold.

2. There is a difference in the processing fee
What type of score is not taken in personal loan? In such a situation, the bank checks your entire background. Due to this the processing fee of personal loan becomes very high. Financial companies or banks charge a higher processing fee in personal loans ranging from 0.5 percent to 1 percent. On the other hand, when you take a gold loan, you pledge your gold. In this case, you do not have to pay any processing fee.

3. Get Gold Loan Quickly
Nowadays banks and financial companies are preferring to give gold loans to customers. The biggest reason for this is that it is considered a secured loan. If the customer does not return the loan money, then in such a situation the company or bank can sell his gold and recover his money. Because of this, it gets approved as soon as possible.

4. Gold Loan Repayment is Easier
Repayment of gold loan is much easier as compared to personal loan. In this, you get many types of repayment options. You can easily repay this loan slowly.

5. Interest Rate Difference
Banks offer gold loans at very low interest rates. Whereas the interest rate in personal loan is very high. The biggest reason for this is that gold loan is a secured loan. Due to this, it is available in low interest rate. Personal loan is an unsecured loan. For this reason, banks and financial companies charge higher interest rates in this.

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