Which is Better, a Gold Loan or a Personal Loan?
Almost everyone, at some point or the other in their lives, my find themselves in need of financial aid. In many cases of financial emergencies, personal loans and gold loans are the best options people have. Borrowers should ideally carefully evaluate both options before choosing the one that suits their needs. Security A personal loan is an unsecured loan, which means that a borrower does not need to pledge any asset as collateral. A gold loan, on the other hand, is a secured loan disbursed against the pledged gold. A gold loan carries lower risks for the lender, so it also comes with lower interest rates. Eligibility A personal loan generally comes with stringent eligibility criteria to check the creditworthiness and repayment capacity of a borrower. On the other hand, a gold loan is availed against gold that is pledged as collateral, so a borrower just needs to be over the minimum age requirement (generally 21 years) and a citizen of India. For people who are eligible, both loans