HOW GOLD LOAN IS DIFFERENT FROM TWO-WHEELER LOANS
The different kinds of the recent reforms in the policies implemented by the government have made a great impact in stabilizing the economy to some extent which was having a very bad effect on the economy. For any kind of emergency use or any medical-related requirements, especially during this time of the pandemic, the options of gold loan, personal loan and other types of loans have sold its remarkable features with the reduced and relaxed limitations and, to some extent, have made to bring some stretch of the smile on the faces of the people. Some circumstances are not used by other types of loans but the gold loan can be availed during those particular times as well. In replacement of the other types of loan gold loan is better but not vice versa.
RATE OF INTEREST:-
The availability of the gold loan calculator will provide an excellent better estimation for a good decision. The question arises which will be more affordable to buy a two-wheeler loan through a gold loan or a two-wheeler loan. The rate of interest for a gold loan is very much lower as gold is broadly traded in the stock exchanges and the jewellery market. The abundance of gold present among the common people is another reason for the same. The amount of the gold loan spent on paying the whole amount of the car will be an excellent option for purchasing. Therefore, the interest rate will be much higher in the case of a two-wheeler loan.
TENURE OF THE LOAN:-
One of the most important things is the period of the loan for which we are availing. This factor depends that how much extra interest we are paying as extending the tenure period will extend the monthly instalment, and each Installment will involve interest on the loan. Generally, gold loans are available for a shorter period as compared with the two-wheeler loan. Canara Bank gold loan also provide such a type of tenure facility for helping the customers. Gold loans primarily event for 12 months to 36 months while on the other side of two-wheeler loan for three years to 5 years time period. For example, gold loan of rupees 1.5 lacs and interest of Rs 2500 every month then it will be a cheaper deal while on the other side of the hand the same amount of a two-wheeler loan for some time of 6 months more than that of the gold loan will attract more interest than the former one.
USE OF APPLICATION AND PROCESSING TIME:-
The gold loan application is very fast and straightforward. It does not require any kind of complex type of procedure like that of a two-wheeler loan where many former it is of starting from getting the licence to achieving the final possession of the two-wheeler. Many formal processes need to be mandatory to perform by a candidate applying for the two-wheeler. At the same time, in the gold, the amount is disbursed within 5 to 10 hours only on the same amount can be used for the same purpose but not like that of the two-wheeler loan. There is no requirement of showing any kind of income proof documents in case of a gold loan, but while on the other side, there is always a requirement of the source of income as income is the only source from where the EMI will be paid. Rate of interest for the tenure period and the documentation, fast approval, and other different opportunities linked into while comparing the gold loan for purchasing a two-wheeler or directly purchasing a two-wheeler loan for a bike.
Read More:- When Should We Apply For A Gold Loan?
