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How To Choose A Right Money Lender For A Personal Loan?

If you are a person who is looking for some ways to improve the quality of your life, you can apply for a personal loan. A personal loan can help you in a lot of ways. You can pay for a better furnished house, you can plan for a vacation, and you can also pay for higher education with the help of a personal loan. You can also apply for an instant personal loan and get the amount of loan within a few hours or even within a few minutes, when in need of some money urgently or when in a financial emergency. The amount of the EMIs can be checked beforehand with an EMI calculator for personal loan.

Following are some of the pointers that a person can use to choose a better and a right money lender-

1) Compare the interest rates of a personal loan- Before the application process is started, it is really important that you look for an ideal or for a right money lender and the right personal loan which will fit your needs. There are different banks and money lenders and non-banking finance companies which charge different rates of interest. Also, with every loan application, the credit score of a person takes a certain hit. So, the process of loan application should be done at last, after all the checking and verification on the side of the borrower. You can compare different loans and their features and interest rates and you can contact different money lenders and seek all the important information. TATA Capital personal loan offers different interest rates to different customers.

2) Check the amount of loan- Next step is to check the amount of loan that you need. It really depends on the needs of the borrower that how much money in total is needed. After deciding the amount of loan, you should choose a money lender who offers a substantial amount of loan that will cover all of your expenses. Also, you can choose a money lender who offers more flexibility. In some of the personal loans, you can pay for the interest rates every month and then, can pay for the amount of loan at the end of the tenure of repayment. These types of loans are ideal for a home renovation as during the renovation, you will be paying different service providers so, you will not get disturbed during that period and after the work is done, you can repay the principal amount at the end of the tenure in one single payment.

3) Read the fine print- Every bank and money lender will provide legal documents to the borrower which will include all the terms and conditions of the personal loan that they offer. So, a person must ensure that he has read the fine print thoroughly and does not have any confusion regarding that. He must ensure that he is aware of all the terms and conditions. Also, if the borrower is facing any difficulty in understanding something or is having any doubt, then he can contact the respective bank or the money lender for the clarification. A fine print is legally binding, so a borrower has to make sure that he is comfortable with each and everything that is mentioned in the document.

4) Take note of a processing fee- The money lenders or the banks mainly charge a processing fee of around 2-3% of the amount of loan, excluding the GST. The amount of the processing fee is deducted from the amount of the loan. A borrower should also check all the other charges that are involved in a personal loan beforehand.

5) Check the prepayment charges and the penalties- It is prudent to use any income to make the prepayments towards the personal loan. This can help a person to lower the rate of interest but some of the banks or money lenders have some strict rules regarding the process of prepayment and some may charge prepayment penalty or fee. Therefore, a borrower must look for these small details before applying for a loan to a money lender.

Also Read:- Did Covid Affect Really Personal Loans? 

In India, gold is an essential metal that is utilised for a variety of purposes. As a result, it has both cultural and historical significance. But that isn't the end of it. For many Indians, gold is an asset or an investment. They regard it as a long-term investment that can be used in a pinch. Hence, gold acts as an inflation buffer and is included in many investment portfolios. The fundamentals of the gold market will be examined in-depth in this article gold loans are frequently chosen because of the lower interest rates.

During this pandemic, the gold rate today has fluctuated a lot, which has caused an increase in demand for gold loans. So let's first look at the reason why the gold rate has fluctuated. The government policies have both a direct and indirect impact on gold prices. Because the policy has a considerable impact on economic factors, a change in the interest rate. If the interest rate is lowered, gold prices will fall. Every country has a gold reserve because gold is a safe investment. As a result, any decision made over gold reserves will directly impact the gold rate. For example, suppose the central bank decides to sell some of its gold reserves on the open market. The gold rate will then fall dramatically as a result of this. Investment trends is also a factor the young Indian population enjoys experimenting with various investment alternatives. As a result, people have begun to experiment with gold investment choices. However, it does not provide a considerable return. It can provide you with a profit during periods of fluctuation. Changes in the national currency will affect gold rates in the country when the value of the rupee falls; for example, gold prices and demand rise, and vice versa. International relation is another factor; the gold price is heavily influenced by international ties between countries. Therefore, the price will rise or fall if the relationship between producer countries and other significant countries is stressed.

During the pandemic, the gold price has increased drastically. This has increased the demand for gold loans in India. So let's know more about what a gold loan is and how you can use it as an investment. IIFL Gold Loan Payment provides money when you need it or have a financial emergency, a gold loan is one of the greatest solutions to consider. A number of criteria support the claim that a gold loan is one of the greatest loans available from banks.

The increasing risk aversion among lending institutions, as well as the high level of uncertainty brought on by the covid-19 outbreak, has boosted people's willingness to Take out gold loans. Due to the implementation of stringent lockdown in most states, those who own small enterprises or work regularly are at risk of losing their jobs. Because unsecured loans such as personal loans and group loans are not available due to the global uncertainties, gold loans are in high demand. Due to the outbreak of the covid-19 pandemic in the financial year 2020, credit growth in this industry plummeted, while gold loans defied the trend. The burden of paying the gold loan is also low as the debtor can choose to repay the principal amount at the end of the repayment period and pay only the interest during the tenure.

During the lockdown in April and may operation hours of banks and financial institutions were limited, the disbursal take-off was not that good. Therefore, the further extent of gold loan demand will depend on how the wave of covid-19 pans out. The Gold Loan rate per gram estimates the amount of money you can borrow against your gold jewellery. The amount of loan will be determined by the purity and gold price of your jewellery, which will be adjusted for the loan to value ratio.

Must Read:- WHY GOLD LOAN IS THE BEST WHEN YOU HAVE LACK OF FINANCES 

With the effect of lockdowns on the global economy, many people suffered financial debt. Get the Personal Loan Calculator working and avail yourself of the most suitable personal loan scheme. As a personal loan is an unsecured loan, the repayment is made in EMIs and the loan repayment tenure. With a personal loan calculator's assistance, the applicant gets to evaluate the best option for himself. Whether you are salaried or self-employed, a personal loan will diminish the financial crunch you are facing.

Concept and Usage of a Personal Loan Calculator -

Before you file your application, use the Personal Loan Calculator by entering the essential information. You do not need help from a professional because it is a user-friendly process. A personal loan calculator is an EMI (Equated Monthly installments) Calculator that helps you evaluate the amount  interest an individual will pay throughout the loan tenure. For availing of a personal loan, all lending institutions have a personal loan calculator on their website. 

You will have to enter your basic information consisting of -

• The amount of loan you require. 
• The preferred tenure of your loan. 
• The income you generate, along with your credit history and relationship with the bank.

After assessing your profile based on these parameters, the bank will consolidate a list of amounts and interest rates suited for you. 

Follow the steps for getting a Personal Loan -

We will suggest you scan the Personal Loan schemes at Indiabulls because of its hassle-free process and flexible interest rates. You can quickly get a personal loan at Bajaj Finance by giving your basic information.

Indiabulls Personal Loan Parameters:

Use the Personal loan Calculator to get funds ranging between Rs. 50,000 toRs. 25 Lacs.

Preferred Loan Tenure :

Your loan tenure can span from 12 months to 60 months. Be wise to opt for the period and get affordable EMIs.

Premium Rate:

The rates vary from 11.49% to 22.50% per annum and compound into a higher EMI over some time.

Personal Profile:

Your monthly income, credit history will result in a better personal loan scheme for you.

Here's how to use the Indiabulls Personal Loan EMI Calculator?

1. Add the following details into the information bar as given, the loan amount, tenure, and interest rate.
2. Check the personal loan calculator for the EMI amount displayed.

Facts you should know about a Personal Loan -

• It is an unsecured loan, and you can get the evaluated amount by submitting the KYC documents for the Indiabulls Personal Loan.
• Unlike a gold loan, a personal loan has a higher interest rate and stricter criteria for the application process. 
• The minimum rate of interest you will get for a Personal Loan will be 11.49% per annum. 
• Take full advantage of a personal loan to meet any financial need. The salaried and self-employed personal loan applications differ in terms of the applicant's age, salary, and a few documents. 
• Every financial and non-financial institution has a personal loan calculator on its website to assist you with the process.

Why using a personal loan calculator will help you in getting your loan?

With upgraded tools and methods, a lot of time gets saved from doing lengthy calculations. Besides, it saves you from having any errors in the process. Not only that, but it will also help you in anticipating your entire investment while getting a personal loan.

Conclusion:

We understand if you do not have an explicit knowledge of what a personal loan is or which one to choose. Therefore we are here to get the best option for you. A Personal Loan is a salient choice because of its lucid process and accessible options.

Read More:- Personal Loan Approval In Covid Can Be Difficult 

During COVID19, the demand for gold loans has surged. Due to the statewide shutdown, many people across India have lost their employment. Due to the COVID19 lockdown, many migrants, daily wagers, people working in the private sector, farmers, businessmen, and others lost money. Due to the coronavirus lockdown, demand for covid-19 jumped by 20%. 

According to the reserved bank of India s latest figures, loans against gold have surged by 82% since March 2020. The debt against gold increased from RS 33,303 crore in march 2020 to RS. 60,464 crore this month. The covid-19 second wave, which afflicted so many individuals across the country, has increased the demand for gold loans. The government has also developed a number of gold loan initiatives to assist people who have lost money as a result of the covid-19 outbreak. Many NBFCs are offering various schemes on gold loans due to the covid-19 pandemic. Gold loan is recommended for getting a gold loan as it is offering various schemes on gold loans during the pandemic. The bank charges a minimal interest rate and processing fees.

In India, people in both rural and urban areas are taking out gold loans in times of financial need. Gold loans are far more convenient and accessible than other types of the necessary information about a gold loan by going online. If the borrower defaults, the lender has the option of seizing and selling the collateral, with the revenues going toward the loan's unpaid balance. The lender can surely take legal action against the borrower to reclaim any remaining balance. The tenure of the loan is determined by the interest rate, which may be determined using the gold loan EMI calculator.

There are various reasons for the surge in gold loans during the pandemic. Some of them are -

Investment Opportunity:
Despite the covid-19 pandemic, many individuals are investing in gold because it is the most trusted sector. Many investors opt to put their money into gold. Many people look for gold loans to found their companies all around the country. Gold loans can be extremely advantageous when it comes to establishing a business. This is the key reason why many people it in an emergency
Loan For Many Purposes:
People all over India preferred taking a gold loan from NBFCs and financing companies during covid-19 because it can be used for various purposes without any restrictions from banks and non-banking financing companies (NBFCs). It can be used for purposes like marriage, education, travel, daily needs, business, house repair and many others. People took gold loans to meet their daily requirements. It is considered one of the most convenient loans in times of emergencies.

Gold Prices Are Rising:
This is another major reason for the surge in demand for gold loans. The market price of gold is quite high. High market prices of gold can be beneficial in investing in gold. The loan amount increased with the increase in the price of gold. This is the best time to invest in gold as the gold price is high. The good market conditions of gold attracted many people. Instead of taking out a gold loan, Muthoot gold loan online quick payment offers customers the option of making quick payments online. The majority of gold loan financing institutions ask the debtor to return the principal amount as well as any accrued interest by visiting a branch office or making a payment online.

Lost In Job:
Many people lost their jobs and suffered huge financial difficulties. Many businesses also suffer huge losses. So many people took gold loans from various banks and non-banking companies(NBFCs) to support their daily needs. People preferred taking gold loans in these financially difficult times as they can be easily within the minimal documentation process. So We can say that opting for a gold loan from a Non banking financial institution is better than these covid 19.

Read More:- Why Gold Loans From NBFCs Are More Favored In Covid 

A lot of people who don't relate to Gold for Cultural or religious purposes invest in gold due to the safe nature it has. Since Gold is present in a limited quantity and money's value has also been pegged to it, its value can never be zero. Moreover, it only goes up and down by a few numbers therefore even in short term investment, It would bring much losses or profits.

Below mentioned are some reasons for taking a gold loan during an emergency -

• Fastest processing:
  The most important thing during an emergency is the instant cash requirement. Gold Loans are known to be the fastest in terms of processing. This has been made possible due to the advancement in the verification of gold machines. Now, most top lenders use XRF technology which can tell in a few minutes where the Gold lies in the purity index.
  
  
• Lenient eligibility:
  There are no occupational eligibility criteria in the case of Gold loans. You can be a homemaker, a working professional, a self-employed person and a retired person, everyone can get a gold loan. This makes it easier for anyone to avail of this loan, especially people who take care of their homes and don't get any monetary reward for that work.
  
  
• Minimal Documentation:
  You only require two documents if you want a Gold Loan. One is your address proof which can be your Aadhaar card, Ration Card, etc. And the other one is your identity proof, here also you can use your Aadhaar card or PAN card etc. Just submit these two along with your gold and get the money within an hour.
  
  
• Range of Gold accepted:
  The quality of your Gold can be as low as 18 Karats. The Gold accepted by banks ranges from 18K to 24K.
  
  
• No prepayment charges:
  Prepayment charges are those charges which would be levied in case you pay an extra portion of your principal amount before the date. Gold loans don't come with any prepayment charges.
  
  
• Readily usable:
  Since Gold is present in almost every Indian family in some quantities, it is readily available to be mortgaged and get a loan.
  
  
• Doorstep Gold Loan:
  Now a lot of banks and Non-Banking Financial companies offer doorstep delivery of services and 30 minutes Gold loan disbursal. You don't have to leave your house, the company representatives will come to your home and help you with all the formalities, check your Gold, take it, and disburse the amount.

Gold loan is a reasonable option for people who have seen a sharp decline in their businesses, some even had to shut down their businesses due to the staggering high losses. As many as one lakh small businesses were shut down due to the continual huge losses they were making. It's the most beneficial loan product for such people.

To search for the nearest branch of the financial institution near you, add near me at the end, for example, search Manappuram Gold Loan Near Me to check for the nearest branch of Manappuram.

The present times are the best times to take a Gold Loan since the Gold Prices are at an all-time high this means that the per gram gold rate has increased which also means that you will now get more money for the same amount of Gold for which earlier you would have got a lesser amount.

Conclusion -

Taking a gold loan during an emergency makes proper sense since it is the least expensive form of the other loan products such as credit cards, personal loans and other secured or unsecured loans. Moreover, the funds can be used for whichever purpose you like. So if you have taken Gold Loan for your home renovation but want to pay for your refrigerator as well, there is no restriction to it. In simple words, it provides you with the flexibility of using the funds the way you want just like personal loans and at the same time have lower interest rates and other charges.

Must Read:- What are the necessary things required to obtain a Gold Loan? 

About gold loan

It is a secured loan that can be availed at any bank, private institution or NBFC (Non-Banking Financial Companies). Borrowers have to pledge their gold ornament to get funds against it. The entire processing time of a gold loan is significantly less, which makes it an ideal loan to get funds instantly. Customers get the flexibility to use the funds they have borrowed through gold loans freely. Banks don't monitor the end usage of the funds. 

Advantages of gold loan

1. Flexibility: There are a number of banks, private institutions and NBFCs that provide the facility of a gold loan. So customers get the flexibility to compare all the options and then choose the ideal gold load for them.
   
   
2. Documentation:- The entire documentation process of a gold loan is very simple and quick. You have to submit the application form and attach some essential KYC documents required by the bank. You don't have to go through a bundle of paperwork to get your loan application approved.
   
   
3. Credit Score: You can use this loan as an opportunity to increase your credit score. To do this, you'll have to repay all your instalments on time, and you will notice a change in your credit repayment history after some time.
   
   
4. Repayment:- Customers have the flexibility to choose a loan repayment structure and tenure according to their budget, income and repayment capacity. So they can calculate their expenses and then choose a repayment tenure accordingly.
   
   
5. Processing fee:- The entire process of a gold loan is very quick and easy. So banks don't charge for a lot of stuff like processing fees. 

Gold loan online application :

Technology has made too much progress. And during this pandemic, everything is being digitalised. So if you want to apply for a gold loan, you can do it by using the online mode. You don't have to visit the bank's nearest branch and wait for hours to get your turn. You can quickly apply for the gold loan facility from the comfort of your home. Everything is being digital, so you can even sign the documents digitally. A lot of individuals are applying for instant loans from their homes. As it's pandemic and people are really scared to get out of their house. This might be an excellent start to make India Digital. 

How can I apply for a gold loan facility online?

The entire application process of a gold loan is speedy, easy and effortless. 

1. Firstly you will have to visit the bank's online website and read everything about their gold loan facility and the eligibility criteria that is required.
   
   
2. Check if you fit into that criteria perfectly or not.
   
   
3. If you are eligible, then you can move ahead with filling the application form.
   
   
4. Complete all the details required by the bank, and then you'll have to attach some essential KYC documents like Aadhar card, Pan card, Ration card, Electricity bill or other utility bills.
   
   
5. Once you're done with the documentation process, a bank representative will visit your house to measure the gold purity and weight.
   
   
6. Your Gold rate will determine the loan amount you'll receive.
   
   
7. After the gold is valued, the bank will state all the terms and conditions regarding repayment of the loan and Interest Rate on Gold Loan in SBI.
   
   
8. Once you have consented to the document, the loan amount will be disbursed to your bank account instantly. 

Conclusion:- Multiple banks and private institutions provide the facility of a gold loan. To compare all the options available carefully and then make any decisions regarding your gold loan. Check your repayment capacity and then choose structure and tenure according to it.

Also Read:- Golden rules for obtaining Gold Loan 

PERSONAL LOAN AND A CO-APPLICANT

A personal loan is an unsecured loan which means that the bank or the money lender does not have any security or collateral of the borrower. Therefore, a money lender or a bank needs some satisfaction that the borrower will be able to repay the loan. Because of this, an eligibility criteria was made which includes a good credit score, a good credit history, a good repayment capacity and everything. Not only this but also the successful verification of the documents is required in order to avail a personal loan. Your identity proof, income proof, address proof, everything will be checked and verified by the money lender. After the successful verification, a personal loan is finally sanctioned to the borrower. Qualifying for a personal loan depends on a lot of factors such as a person's income, his current liabilities among others and his credit score. A person may also fail to meet the eligibility criteria of a personal loan as a primary borrower either due to his inadequate income or his low credit score. The amount of EMIs can be calculated with the help of a personal loan calculator SBI. In such situations, a person can apply for a joint loan with a co-borrower or a co-applicant. It will enhance the overall eligibility too.

WHO CAN BE A CO-APPLICANT IN A PERSONAL LOAN?

The banks or the money lenders or any other financial institutions do not allow anyone to become a co-applicant in case of a personal loan. This is because most personal loans are higher. A co-borrower or a co-applicant can be one of your parents or can also be your spouse. Also, you need to find out if a money lender or bank has any such provision or not. When a person adds a co-applicant or a co-borrower in the application of a loan, their joint income is also taken into consideration by the money lender. Therefore, if a person is not able to stand up to the eligibility criteria of a personal loan as a primary borrower either due to his income or any other reason, he can apply for a personal loan with a co-applicant. Also, if he will add a co-borrower which has a good credit score and a large income, then there are chances that the person can get a personal loan of even a bigger amount and that too at a competitive rate of interest.

IMPORTANT THINGS TO TAKE INTO CONSIDERATION

As mentioned above, a co-borrower or a co-applicant with a good income and a good credit score can certainly improve the eligibility of a personal loan, there are some important things that you need to watch out for.

1. The income of the co-applicant is not the only thing that is taken into consideration but his credit score too.

 2. A good credit score can, no doubt, boost your personal loan eligibility but at the same time, a poor credit score can dent your own chances of procuring the personal loan.

 3. Therefore, it is really important to find out if the co-applicant has a good credit score or not.  

4. Also, when you will apply jointly for a personal loan, the onus of paying the equated monthly installments rests on both the borrowers.

5.  In case your co-applicant fails to pay his/her part of the monthly installment, then, you must get yourself ready to repay the co-applicant's share of the monthly installments.

6. A default on the part of any of the borrowers will affect both of the credit scores of the borrowers.

CONCLUSION: A co-applicant or a co-borrower can be of great help in getting a personal loan. A personal loan can be availed easily with a co-applicant. The amount of the EMIs can be calculated with the help of an EMI calculator personal loan. The borrower has to repay the personal loan to the bank or to the money lender in the form of monthly installments.

Must Read:- Personal Loan Insurance 

There are many situations in which we come across whether to take any kind of loan or not. We think twice before doing so. On the contrary, one should check all kinds of factors and aspects before availing a gold loan.   The gold loan applicants should know which documents need to be submitted and what is the gold loan eligibility for them for availing themselves of the gold loan.  

 The loan at as low rates as possible which will save a candidate to a much extent. If we see then Syndicate Bank gold loan also offers good that is around seven percent.

Come to the point that on the thinking upon the following factors and its possibilities- 

One should always look after the financial background for the financial requirement which a loan makes you go through. If the current situation of a person is financially very well then he will not have to think too much about a small or big kind of loan. On the other side of the coin, if the loan is too huge or too big then a part of it must be exempted from living the loan.  Apps for the gold loan most of the banks have reduced much lower their rate of interest as compared to the other forms of loans. 

If half the loan is utilized in the loan for the renovation of a house then the house can be used for further investment purposes like that of renting out the property of the house. As gold is easily available mostly in the household parts of India so there is an immense opportunity for the availability of gold. After stocks gold is the most tradable goods in the commodity market. There has been an immense opportunity for a loan if someone is having the gold as valuables with them. Every person is fond of gold whether they are available in the form of wearing valuables or in the form of coins or commodity goods.

Gold loans have a unique feature due to which it is considered among all the types of loans. In the case of the credit score, there is no requirement of showing such records as there is no risk of repayment because if there any kind of problem arises for the compensation for the customer refusing to pay, then the bank will have the perfect option to resell the gold as well as can auction the gold available with them. If we see the other opportunities in the gold loan, we can find out that there will be a low-interest rate compared to the different types of loans. The interest rate is very low because there is no risk of repayment, and there is no requirement of any kind of other eligibility.

The other benefit of the gold loan is that there are no complexities in the documentation case. The documentation in the process of the gold loan only includes proof of identity, proof of address and the passport size photograph, document showing the ownership of the gold. If you compare this with the other types of the loan like personal loan, there will be a requirement of the documents showing the source of income like payslip, bank account statement or the salary slip. It also reduces the time-consuming process as most things are done online in case of the gold loan, and there will be fewer chances of forgery of the papers while travelling from home to the financial institution for the procedure of the gold loan.

Conclusion:-

One needs to research a bit where and at what rates the loans are being provided so that a better judgment can be done while comparing the rates and availing the best suitable loan deal.  It gives you saving in the initial process only where you can save.

Must Read:- REASON FOR INCREASE IN GOLD LOAN 

It is the most convenient way to obtain money immediately in an emergency. A personal loan is only approved after a thorough examination of the borrower's credit score. As a result, the borrower's credit score is crucial in determining whether or not a loan will be approved. An excellent credit facilitates personal loan acceptance and may even result in a lower interest rate.

A three-digit number is a credit score that determines your creditworthiness. Your credit score determines the likelihood of your application being granted. For example, your loan application will be accepted more quickly if you have a good credit score. On the other hand, a low credit score may result in your application being refused, or a high-interest rate is imposed.Your credit report will show how you handle your expenses, credit and loans. You can receive these personal loans from a variety of institutions and lenders. Through Sbi personal loan eligibility, you can learn about various factors that can affect your loan amount, which makes your job much easier because they assist you with the various terms and conditions that are required, as well as the minimal documents that banks and lenders ask for when you apply for a personal loan. There are a few conditions that must be met to obtain a personal loan. Thus these possibilities are available.

IMPORTANCE OF CREDIT SCORE IN PERSONAL LOAN APPROVAL

Your credit score will be made of your current and prior bills, loans and credit. It will assess your creditworthiness. Your credit score will have an impact on whether or not your application is approved. Many banks use credit as the key criterion for approval. Therefore whether your application is approved or determined by credit score, an applicant whose credit score is 750 applications will be handled quickly. Your credit score will also influence the bank's interest rate. Your credit score has a great impact on many aspects of a personal loan. For example, a person's credit score will define their reliability. So, if your credit score is good, banks will be more likely to trust you based on your past loan repayments and charge you a low interest rate. However, if your credit score is low, banks will either reject your application or charge you a high- interest rate and other fees. You can enjoy additional benefits and services with a good credit score. A good/excellent credit score can benefit you in a variety of ways. For example, many banks provide extra benefits and services to people with credit scores above 800, such as waiving 10 % of loan amount/charges or offering low-interest rates.

Personal loans can be used for various things, including buying expensive gifts, planning a vacation, buying computers, or receiving emergency medical treatment. People choose a personal loan over another type of debt for a variety of reasons. People who seek a loan that does not require any collateral and is a safer alternative to a payday loan should get a personal loan. Also, a personal loan consolidates a borrower's existing bills and is a considerably better option than high-interest credit cards. On the other hand, personal loans should be appraised after determining the debtor's ability to repay as they increase the debtor's financial burden. Any prominent person with a good credit score can get a personal loan after meeting the requirements outlined in the personal loan. Your loan has an impact on your credit score, but your loan impacts your credit score as well. As a result, it's critical to pay all of your bills on time and keep a good credit score. The EMI Calculator personal loan is beneficial in this case; it shows us the EMI, which we have to pay monthly out of our monthly income. It helps you to prepare a budget which helps in maintaining all the expenses along with EMIs.

Read More:- What are personal loan Origination fees 

What is better to chose: - Gold Loans from banks or non-banking finance companies?

As the prices of gold are rising, the gold loans have become a kind of lifeline for all the small businesses, salaried individuals, traders and the self-employed people who are looking for some help in case of a financial emergency. The most crucial decision that a person has to make while applying for a gold loan is whether to apply it in a bank or in a non-banking finance company. There are a lot of factors that a person has to consider before deciding one such as the interest rates, the tenure of repayment, the safety of the pledged gold, etc. The gold loan interest  are also higher in the non banking finance companies than the interest rates in the banks.

Following are some of the points which will tell you the difference between both of them and which is a better option to go for: -

• INTEREST RATES:-
  
  The rate of interest is determined mainly by how much it will cost the money lender or the bank to arrange for the funds. The non-banking finance companies do not really have an access to the large deposits and therefore, the rate of interest offered by a non-banking finance company is comparatively higher than the interest rates offered by the banks. The maximum limit of the amount of loan is around 90% of the market price of the gold pledged by the borrower. The rate of interest on a gold loan by a non-banking finance company can go as high as 29% whereas the rate of interest on a gold loan ranges from 11%-16%. Also, some of the banks offer some preferential rate of interest to the existing customers.
  
  
• LOAN TO VALUE RATIO:-
  
  The loan to value ratio is mainly the loan amount that a person can get on a specific asset deposited by him as a security to the bank or to the money lender. The fluctuations in the price of the gold have no role to play in the amount of loan that is granted to the borrower. Also, the maximum limit of the amount of loan was earlier 75% of the market value of the gold but now the Reserve Bank of India has changed the percentage and it is, now, 90% of the market price of the gold. For instance, if a person has deposited the gold articles worth Rs. 5 lakh, the maximum amount of loan that the person can get is 90% of the market price of the gold. It means that he can get the loan of upto Rs. 4,50,000. SBI gold loan per gram offers the amount of loan according to the price of the gold.
  
  

• TENURE OF REPAYMENT OF GOLD LOAN:-
  
  The tenure of repayment of a gold loan is flexible and it ranges from a minimum of 12 months to a maximum of around 60 months. When a person wants to fund some short term expenses or wants some money for a longer period of time, he can apply for a gold loan as it can help you to get the cash immediately. The tenure of repayment of the gold loan offered by the banks are 50% longer than the tenure of repayment of the gold loan offered by the non-banking finance companies.
  
  
• REPAYMENT TERMS: - 
  
  Both the banks and the non-banking finance companies are better in performance in this option. The three repayment options that are provided by both the banks and the non banking finance companies are as follows: -
  
  

1. EMIs-
   
   These are the equated monthly installments with the interest rate and a person can repay the loan in the form of these installments.
   
   
2. Upfront Interest-
   
   In this option, a person can pay the interest and pay for the principal amount at the end of the tenure.
   
   
3. Bullet Payment-
    
   In this option, a person can repay both the principal amount and the interest rate on the maturity of the loan. The rate of interest monthly but is collected by the bank at the end of the tenure of repayment.

Also Read:- Go With The Gold Loan. Go The Indian Way. 

A personal loan that can be acquired at any bank or NBFCs is an unsecured loan. The entire loan process of a personal loan is very quick and easy. You can easily get funds through this loan option. However, a lot of individuals are confused and often ask if they can apply for two or more personal loan options at the same time. So to answer this question today we're going to state all the factors, possibilities and chances of getting multiple personal loans and have listed some of the common factors below:

1) The amount has to be repaid:- Customers have to repay the loan amount they've borrowed. Banks don't give customers loans for free. They have to repay the amount along with the interest rate. So you'll have to repay both personal loans along with their interest rate. 

2) Credit score will be impacted:- The credit bureaus keep complete track of every loan, debt and credit you take. So the fact that you've applied for a personal loan will be recorded along with its repayment. And taking another personal loan will impact your credit score by a few points. And if you miss even a single instalment of both loan options, then your credit score will be heavily affected.

3) You may be charged with a high-interest rate:- If your credit score is low, then banks will either reject your application or they will provide the facility of a personal loan at a high interest rate. 

4) Your net worth should be positive: Banks will only approve your application if you have a decent income to repay the loan amount you've borrowed. So if you're planning to apply for another personal loan then you should be prepared to repay both instalments on time. 

5) You can be stuck in a vicious debt cycle:- If you ever face a situation where you don't have funds. Then you'll be stuck in a debt cycle because you'll have to repay the loan amount of both personal loans. 

6) More documentation will be needed:- If you've decided to apply for more than one personal loan, then banks will demand more documentation. No one wants a risky customer, so to confirm things banks will ask for additional documents. So you should have a stable job with a constant source of income, banks will check whether or not you can repay the loan options according to your repayment capacity. 

7) You can't pay more than 50% of your income as EMI:- Before applying for a second personal loan, you can use some online tools like instant personal loan online to calculate your expenses. Because you can't choose 50% of income as EMI for one loan. As of now, you'll have to pay both loans. So you can't exhaust 50% of your monthly income for one loan option. 

Advantages of personal loan

Applying for a personal loan is the best option if you're looking to get funds for immediate purposes. There are a number of advantages, benefits and services that can be availed through applying for this loan option. 

We've mentioned some of the most common advantages of a personal loan below: 

1) Hassle-free processing:- The entire application process of a personal loan is very quick and easy. You can easily get your loan processed within a few days. The application is usually verified within 2 to 5 business days. However, a lot of banks will approve your application instantly if you have a high/decent credit score. 

2) Unsecured:-  HDFC Personal Loan is an unsecured loan, so you don't have to pledge any type of asset/gold/property to get funds from this loan. Banks will easily disburse funds even if you don't have any assets under your name. 

3) Flexibility:- Customers have the complete flexibility to use the funds given through personal loans freely. So they can use the funds for various purposes like weddings, family vacation, debt consolidation, child's education fee, medical bills, miscellaneous expenses, etc. 

4) Documentation:- The entire documentation process of a personal loan is very quick and easy. You just have to submit the application form and some basic KYC documents to get your application verified.

Must Read:- Personal Loan no-cost EMI option 

In addition to the fact that gold loans can be taken at any point of time from any bank or lender, the gold loan process has many benefits, some of which include that it asks for limited documentation needs, puts up with a lower interest rate than other loans, is authorized more promptly etc. Now, there are numerous uses of gold loans as they are not bound to be utilized for a fixed purpose, so let us examine the different objectives for which gold loans can be used as given below:-

1. For funding higher or abroad education:-
   
   Many banks and lenders provide student loans for college admission in India or abroad, tuition fees, and additional suitable expenses. However, education or student loans arrive with multiple terms and constraints. A person has to assure acceptance that an apt bank or lender needs to be recognized either in India or abroad. If the institute cannot qualify as capable or income is ineffective in authorizing for a student loan, it may get denied. In such cases, it is adequate to apply for a gold loan which is a valid alternative.
   
   
2. Existing Business, Startup, or Small Enterprise:-
   
   Gold loans are reasonable for the people who need an immediate business loan for funding their current or new businesses. This can frequently happen with women entrepreneurs who may acquire the abilities and skills to initiate a business at a small scale but do not have the funds. Gold loans can be an excellent means to finance their businesses, big or small, for such women. The odds are limitless, provided the LTV ratio and low-interest rates on the gold vowed.
   
   
3. Loan for buying Automobiles/ houses:-
   
   A Gold Loan can act as a reasonable funding technique to acquire an automobile or your home. Unlike a car or home loan, gold loans do not need any document proof from the trader, nor does it require proof of salary from the borrower. Accordingly, you can borrow a gold loan with no difficulty using online means to buy an automobile or house of your own choice.
   
   
4. Medical expenses:-
   
   If you have an immediate medical emergency that comes out documented bleed blue, it is evident that it will give rise to requirements for funds, and you may need instant funds for fulfilling medical expenses; a gold loan can establish to be extremely valuable at times like these. In addition, gold loan authorization can be fulfilled in a few minutes, enabling instant disbursement of the loan amount within a few moments.
   
   
5. Miscellaneous tasks:-
   
   There are times when you require money for performing minor tasks. For example, a piece of home equipment like the air conditioner might possess some functioning difficulties, or you may wish to paint your home or office. Whereas negotiating an asset or investment for such expenses may occur unreasonably, a gold loan can be a logical and productive way to pay back such expenditures.
   
   
6. Take away:-
   
   There are several benefits that gold loans offer. One can easily take a gold loan from any bank and lenders as several banks offer gold loans as it is the first choice of borrowers and banks and lenders as due to being a secured loan, it eliminates all the risk of a reliable loan. There are various banks and lenders which offer you gold loans for various purposes such as planning vacations, purchasing gadgets, dealing with education expenses, etc.
   
   One can check the Muthoot Gold Loan Payment systems to understand better how they can avail such services as they offer various schemes. You can get a gold loan for any purpose at a manageable rate of interest and flexible tenure. Moreover, they don't have any rigid terms and conditions, plus they require minimal documentation, such as identity proof, residency proof, some additional documents etc. which eliminates any extra time wastage.

Must Read:- Some Essential Features of a Gold Loan