Are you also wondering? Why are most people going for gold loans rather than personal loans?
No wonder, there is a big question mark on your head. The reason why it is making you so confused is the lack of the right information. You don’t have any idea how fast people are going for gold loans nowadays. It is growing very fast day by day. Why is that so? Well, because the schemes are great and the procedure is also very easier than the other loans. You may have found difficulties because you never knew how things work here or maybe you have ignored paying attention to this subject. Therefore, you went all wrong but you still have time to think and decide. We will know about all of the things here in this article. So be with me till the end.
How are gold loans growing faster than personal loans?
The Interest rate on gold loans varies from bank to bank. Many NBFCs are also in the competition so they have started to offer affordable gold loan interest rates to gain good customers. Now the most interesting thing is that a major part of India’s households has a good amount of gold for an emergency. They use gold a lot like in weddings and festivals. Gold is good luck (they call Laxmi the goddess of prosperity and wealth) for people in their prosperity. Women love wearing gold jewelry and in big festivals, they even use gold utensils. So, it is very common for them to have gold. In this pandemic, many are losing their jobs, and those who are in business are also facing financial issues. The economy has got a crisis and at this time you can not blame anyone. Therefore, a gold loan is the best option for people to solve all the problems around. As it is a very easy way to get cash in your hands on the spot. This pandemic has encouraged people to go for low-interest gold loans because in personal loans the procedure is very lengthy and time taking. One thing that should be noted here is that a personal loan is unsecured to the lender. That’s why they take a long time to investigate with a lot of paperwork.
Gold loans vs Personal loans
Now we will discuss what makes a gold loan better than a personal loan.
Procedure and Interest rates
The main factor here is that gold loans are faster in the process than personal loans. It doesn’t require much paperwork or proof as it is fully secured in nature to the lender. You just need to give them your Id proof like Aadhar card, pan card or voter id, etc. Also, address (electric bill or water bill) proof is needed too if your Id card doesn’t have it. There is no need for CIBIL score documents or income documents. The secured nature of lenders exists because they have your gold and that’s why they provide you with low-interest rates and who doesn’t want it.
Whereas in a personal loan, you need to provide them with your income documents and for them, you need to pay processing fees before getting the money. It also has a long process with so many steps because of its unsecured nature to the lender as I said above. That’s why you need to provide them proof so they can trust you enough to give you money. The reason they can not trust you enough is why they have high-interest rates. Because there is risk and many banks and NBFCs have faced situations of fraud.
Repayment options and loan tenure
In gold loans, you will have many options to repay with any headache. The methods of repayments are very flexible as it is secured in nature to the lender. They give you more options with great schemes and facilities. They also give borrowers enough time to repay according to their convenience as it is short-term.
While in a personal loan it is a headache because the lender doesn’t feel secure to invest in you so they don’t give many options. Yeah, they have schemes to repay in EMI for more time than gold loans but the high rate of interest becomes stressful in the long run.
In conclusion, we have got to know how flexible and easy a gold loan is. So, I highly recommend you to check out the Rupeek gold loan rate today. It has great schemes and facilities that will be very helpful. It allows you to repay in many ways. You should visit the website, all the best.