Let us briefly learn about each parameter and how it differs from both that is a loan against gold and personal loans. We shall also see what kind of profits the gold loan provides over the unsecured field of personal loans.
PROCESSING TIME:-
Well, when we first take in ten parameters related to the processing duration to avail the gold loan personal loan, the time differs in both. The processing duration of a gold loan tends to be pretty good and fast whereas the processing duration of a personal loan is long and slow when compared. The PNB bank gold loan gives in their word that the processing time in their bank is just 30 minutes. The processing duration associated with a gold loan is just a matter of a few minutes to hours. While when we refer to the processing duration involved in getting a user his or her loan, it may almost take about 5 to 7 days which is up to a week in basic. So this way gold loans are offered quicker and faster than personal loans.
DOCUMENTATION:-
Nowadays, for every process, some of the documents are to be submitted as proof, and trust is made mandatory. Keeping that point in mind, it applies similarly to both gold loans and personal loans as well. The documentation needed and required by the lending organization for gold loans and personal loans may differ. And if we talk about the case of a gold loan to be accessed by the borrower, he or she is considered lucky since they just require to submit a very minimal amount of reports, which consists of very basic ones, that is general government ID proofs, which are nothing but Aadhar proof, PAN card, Driving license, etc and any among proofs are accepted. While in the case of the personal loan to be regarded, the documentation is on a higher level, that deals with the income tax return, etc. So the general crowd of users chooses gold loans over personal loans when documents are regarded.
PROCESSING FEE:-
To take into account the processing cost, this is one of the primary key parameters to the users as it may also help them eventually to calculate and make a point of the actual cost of availing for the loan they are going to get. So this means, the less the processing cost, the better preference on selecting either a gold loan or personal loan. The processing cost, which banks make is very less, which ranges from just ₹10 onwards and few others at the most may cost up to 2%. But when we regard the processing fee associated with personal loans, it may go almost to 3% which is a lot more in comparison to the loans against gold and that is why users have their preferences on gold loans more.
INTEREST RATE:-
If we talk in basic terms, the gold loan interest rate ranges from 7.25% to 29% while the personal loan offers a range between 8.45% to 26%. Every user needs to maintain and see to it that he or she has a nice and high credit score since the interest cost being offered takes into consideration of the credit history as well. However, the gold loan is to be considered as it presents satisfactory interest rates.
REPAYMENT SCHEMES:-
Repayment is one of the major points for every user to fulfill their payments accordingly and eventually to maintain a good credit history. Hence banks usually make sure to offer a wide number of repayment selections and eventually a user can choose whichever he or she feels convenient.
Conclusion:- In this case, gold loans present a variety of repayment options for their users while the personal loans just put forward an EMI scheme of repayment. Therefore the gold loans are opted for by more candidates.
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