When in need of funds, individuals often find themselves contemplating the best borrowing option for their specific requirements. Two popular choices that frequently arise are gold loans and personal loans.
While both serve the purpose of providing financial assistance, there are distinct differences between them. the key differentiating factors between gold loan and personal loans to help you make an informed decision.
What is a Gold loan?
A gold loan is a secured loan where borrowers pledge their gold assets as collateral to obtain funds from lenders. This article aims to shed light on the concept of gold loans, their benefits, and how they can be an advantageous financial solution.
Gold loans are accessible to a wide range of individuals, regardless of their credit history or income level.
How to get a gold loan?
As a borrower in need of funds, I decided to explore the convenience and efficiency offered by the Bajaj Finserv Gold Loan App.
With a pile of gold ornaments lying idle in my locker, I saw an opportunity to leverage their value and address my financial requirements. This personal experience highlights the seamless process, competitive interest rates, and exceptional user experience I encountered while availing of a gold loan through the Bajaj Finserv Gold Loan App.
To apply online, follow these five simple steps:
- Click on the “gold loan” option under the “loans” section on the homepage.
- Fill in the details like amount of the loan, location, and contact details.
- Upload a copy of your KYC documents like an Aadhaar card, PAN card, etc.
- After submitting the application, a representative will contact you to verify your details and schedule a gold valuer’s visit to evaluate the value of your ornaments.
- Once the gold is evaluated, the loan amount will be disbursed to your account within 24 hours.
What are gold loan interest rates?
The gold loan interest rate in India is typically lower than personal loans and other types of loans as they are secured loans. However, the rate of interest may vary between lenders, so it’s important to compare rates and choose a lender that offers the best deal.
The process of obtaining a gold loan is relatively simple. The borrower approaches a lender, typically a bank or a non-banking financial company. and presents their gold items for evaluation. The lender assesses the purity and weight of the gold to determine its value and, subsequently, the loan amount that can be extended.
What is a Personal Loan?
A personal loan is an unsecured loan that provides individuals with financial assistance to meet various personal expenses without the need for collateral. This article aims to provide an overview of personal loans, highlighting their features, benefits, and how they can be an effective solution for your financial needs.
How can we get an instant personal loan?
In times of financial emergencies or urgent cash requirements, instant personal loans can be a lifesaver.
Here is a step-by-step guide on how to avail instant personal loan:
- Visit the Bajaj Finserv website
- Sign up using your mobile number
- Add your personal details to check your credit limit
- Complete KYC, and you are good to go for an instant personal loan
By following the above steps, you can get an instant personal loan easily and hassle-free
Conclusion
Choosing between a gold loan and a personal loan depends on your specific financial situation and requirements. If you have gold assets and are in need of immediate funds with a lower interest rate, a gold loan may be a suitable option.
However, if you don’t possess gold assets or require a higher loan amount with a longer repayment tenure, a personal loan might be more appropriate. Consider the key differentiating factors mentioned above and evaluate your financial needs before making a decision.
