Gold loans Vs personal loans: Which is better option?

Gold Loans and Personal Loans both have their own Pros and Cons so let's discuss about them

Pros of Personal Loans: -

• Personal Loans are unsecured loans that means you don’t needed any security.
• You can get instant approval on Personal loan while applying online.
• Personal Loans are flexible you can use the loan amount according to your need.

Cons of Personal Loans: -

• Interest Rates of Personal Loan are usually high in Personal Loans.
• CIBIL Score is the key factor of personal loan approval and It becomes very difficult if you don’t have a good CIBIL Score.
• You must needed a Job or stable income source for Personal Loan.

Pros of Gold Loans : -

• Gold Loans are secured loans that means interest rates are normally low in Gold Loans.
• You can easily take the loan against pledged gold and gold ornaments.
• The amount of Gold Loan can be used according to need.

Cons of Gold Loans : -

• The amount which you borrow from bank is depends on the quality and quantity of your gold.
• You can only take upto 75% amount of the actual value of gold.
• Sometimes in gold loans you pay low interest rate for a longer time and end up paying more interest as compare to other loans.

So Both loans are quite similar, you can use the amount of both loans on the basis of you need. but the real difference between Personal Loan and Gold Loan is, in Gold Loans the loan amount depends on the quality and quantity of you gold. In Personal loans you can easily borrow higher amounts from Financial Institutes without any mortgage all you needed is a good income source and enough CIBIL score.

So if you have a Job with good CIBIL score then apply for the Personal Loan and in case if you don’t have any Job or a stable income source then gold loan is a better option for you.