How A Gold Loan Is Beneficial Over A Personal Loan

2 mn read

The Indian public is sentimental driven that showcases an emotional attachment to the gold. A trend is that the common people tend to hoard it and end up making bars and coins from it. A sad feature is that very few Indian households go on to liquidate the asset since there is a feeling of emotion emerging from the same. The gold loan rate in Jaipur is fairly competitive and it makes sense to opt for such a loan and not a personal loan. In the midst of this a personal and a gold loan is necessary to cope up with unperfected expenses. One thing is for sure there would be certain differences between gold loan and a personal loan.


The buyers are not going to need any form of security when it is the case of a personal loan. But you go on to sanction a gold loan keeping the collaterals as security.

The cost associated with raising a loan

When it is the case of personal loans the banks have no option to offer collateral. Then the lending institution is going to scrutinize the personal documents of the borrowers. Most of them end up charging nominal fees when it comes to personal loans. In general terms the rates of the personal loans are in the margin to the tune of 0.5 % to 1 % about the loan amount. On the other hand once you are applying for a gold loan in Jaipur they are going to offer collateral assets as security. Seldom has it cut away the situation of processing fees.

The moment you are applying for a gold loan there is no need to present any form of security documents as the asset is in the form of a collateral.

Time line

The process of obtaining a personal loan is complex and a cumbersome one. It is possible to be conducting due diligence that the capacity of the person is proper. It might turn out to be a time consuming process and the loan sanction might turn out to cause a delay.

Assessment of credit history

The applications for personal loan are based on the credit history of a person. What it goes on to showcase is the repayment history in short. The personal credit officers go on to outline the fact that if a loan is sanctioned it has to be paid on time. But once you are opting for gold loans the credit score does not have any bearing. The lending hubs go on to keep the gold as collaterals and on applicant ‘s profiles the role of credit history does not have any bearing. Even if the applicant fails to pay the instalment on time they are going to avail a gold loan in the future.

To conclude when it comes to the concept of gold loans, the individuals can end up choosing flexible payment tenures. Some of them could end up choosing to pay the interest or you could pay full lum sum amount.


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