Personal Loan Vs Gold Loan: An Analysis
Personal Loan or Gold Loan: Which One is Better?
In recent times loan against gold has also gained popularity. Now gold is not just glorifying the beauty of women and occasions but is also serving a means to meet urgent ends. This means that if you are in need of liquid cash and are not able to crack means to meet the urgent financial requirement then gold ornaments and gold in physical form may come to your rescue.
On the other hand, personal loans have always been a source of steady cash especially for salaried individuals who seek to meet their small unfulfilled dreams with the easy cash that they obtain via personal loan with low EMIs and less burden.
The following analysis will help you in comparing personal loan with gold loan thus, enabling you to decide what will help you in your hour of tide. Take a look –
1. Kind of Loan - When we talk of gold loan it goes without saying that it is a secured loan. When you opt for gold loan you ought to provide the banks or the lender with gold jewelry, ornaments, gold biscuits or gold slabs as collateral security and the loan amount that is advanced to you forms the basis of the security given by you.
On the other hand a personal loan is usually an unsecured loan. The amount of loan that is advanced to you is on the basis of your flow of income, your credit worthiness and credit history. A personal loan can be a secured loan in case where the bank or financial institutes doubt the credit worthiness of the borrower or they find that the credit history has had missed payments or the credit score does not speak favorably for the borrower.