Owing to the cancellation of the Japan Olympics, the entertainment sector and the tourism sector, restaurant chain systems, and an ample number of different sectors have been affected due to this pandemic. It is very much thankful to the services of the banks like that of the loans and advances which have made the people meet the requirements which are essential and were somewhere related to urgent basis. Gold loan and personal loans have been used the most as it is free from most of the complexities like that of the other kinds of loans and are much more secure than fast.
Different types of companies had given sponsorship for the IPL league matches, which is considered one of India's biggest festivals. IPL is also under the shadow of the pandemic in which the teams have interacted and found to be called positive during the tournament. Thus, the part of the loan for the purpose has been given some relaxation according to the new rules of provisions of the moratorium period. In the meantime, the government and the finance ministry have also decided to give peace to the customers like that of the services availed for a gold loan or personal loan where the tenure of the four years has been extended till five years.
Gold loans can be said as an alternative to a personal loan where the gold is used as collateral security by the bank. Still, it is not named collateral but is termed a pledge kept in the bank based on which the loan amount is advanced towards the customers.
In the case of the gold loan, there are a few criteria and the requirements divided by the loan providers, and on the satisfaction of which is made by the applicant, the loan will be approved in the applicant's name. There is a limit of purity in terms of the gold which the customers will bring to avail loan must be having the range between 18 to 24 carat else it will not be treated like gold for which the loan will be given. IIFL gold loan also offers good facilities for the customers. rate It has been seen that in most of the cases where there are people who are unable to avail personal loan while having the other option of the gold already available in the house, then there is no point in going for any other options.
Suppose a person travels on a personal loan leaving the gold idol at the house. In that case, the interest rate can vary, as in the case of a gold loan, the rate of interest will be a little bit lower than that of the personal loan even on her winning an excellent credit score based on gold rate. The reason is that there is no collateral security available to which the risk of default on the non-repayment of the excess amount or the total amount will be. While on the other hand gold loan does not include these types of risk as the goal itself serves as collateral where the bank has complete freedom to resell the gold and reclaim the excess amount or make it available for auctioning and do the same.
Conclusion
Personal loans tend to get approved as fast as possible and are very much full of freedom as there is no restriction or provision to show that the loan being availed will have to be spent on that only. For the same, some papers of the documents will need to show for the inspection done by the loan providers' officials like the home loan or car loan. In the case of the documentation, there is also less involvement of the paperwork in both the types of the road, but few income proofs might be e needed to show in the case of the personal loan as the income is the only source of repayment of the loan for the bank while in case of the gold loan there is only required of the proof of address, the proof of identity and in some cases passport size photograph and the gold ownership certificate.
Also read this: Personal Loan Uses