Personal Loan or Gold Loan which offers best Interest Rates
What is a Gold Loan?
A Gold Loan is a secured form of Loan which is secured by anything of value you possess, known as collateral. Your gold valuables or other expensive items, like jeweler, are common instances of collateral. A Gold Loan disbursal process is quite simple. Firstly, eligibility criteria have to be checked by the borrower before availing of a loan. An Application has to be submitted in the nearest branch of HDFC Bank or via the official website. The next step is Document verification and Purity Test of Gold, where one has to submit Identity Proof and Residence proof and the gold, which has to keep the mortgage. The Purity test of Gold is conducted inside bank premises at a scheduled time by Bank authorities. Once all these processes are complete, the loan gets approved in a short while. An Approval letter is given to the borrower containing the details of the lending bank, gold loan scheme, total loan amount approved, Interest rates, processing fee, prepayment charges, foreclosure charges, tenure period, repayment options, etc.
Benefits of Gold Loan :
- A Gold Loan up to Rs1 Crore can be financed.
- A Gold loan can get disbursed within a few hours after applying.
- Loan tenure of up to 24 months can be given to the borrower.
- Less paperwork involved in Loan disbursal.
- Gold valuables have to be kept as collateral for availing this loan.
- No guarantor is required to avail of this loan as collateral is involved.
- Interest rates on Gold Loan are less as compared to other loans.
What is a Personal Loan?
Personal Loans are a form of unsecured loan which is obtained without the use of collateral. The lender risks a higher amount of risk because the loan is backed by nothing of value. An individual can avail of a Personal Loan for satisfying one needs which can be for a wedding, higher education, travel, medical emergencies, financial miseries. Personal loan interest rates are higher than other loans and can range from 16% to 24%. The Personal loan application can be submitted online through the bank’s website or offline by visiting the bank in person. Eligibility criteria are a set of rules decided by the lending bank which the borrower has to abide by. After fulfilling all the necessary eligibility criteria, an application for a loan has to be submitted. Document verification is an essential step in the Loan Approval Process. An identity proof, residence proof and valid Income proof have to be submitted by the borrower. The Bank representatives thoroughly examine these documents. Income proof is asked to prove one’s ability to repay the debt as no collateral is involved there. These loans come up with a more extended tenure period. A CIBIL Score of above 750 is requested, and a good credit score makes the loan disbursal process quicker. Self-employed individuals or salaried people can avail of this loan by showing proof of salary slips or business proof of previous years. A bank representative contacts you once the loan gets approved, and an approval letter is handed to the borrower, which contains all the required details of the lending bank and loan details.
Benefits of Personal Loan :
- A Personal loan of up to Rs75 lakh can be financed.
- Personal Loans can get disbursed within a day after applying.
- Loan tenure of up to 60 months can be given to the borrower.
- Less Paperwork involved in Loan disbursal.
- There is no need for collateral.
- A guarantor is required to avail of this loan.
- Attractive Interest rates starting from 9.90% can be availed depending on the loan scheme.
Therefore, HDFC personal loan and Gold Loan come up with their advantages and simple application process. Personal loans are the best-suited option in emergencies, whereas the higher loan amount with incurred interest rates should be considered. Gold Loans have low-interest rates, but the gold can get auctioned if you fail to repay.
Also Read:- How do your Aadhaar card and PAN card help you to get a Personal Loan?
