Need to take an emergency loan? Gold loan is a better option than personal

  • This is a good loan option to consider if you need money in an emergency as disbursal tends to be quick.
  • Lenders provide this loan for durations ranging from seven days to up to three years.
  • Compare the interest rates charged by various players. They can range from 9.6 per cent to 29 per cent.
  • Take into account the processing fee as well. It can range from 0.10 per cent to 2 per cent of the loan amount.
  • Since you are providing a collateral, you should ideally be able to get a gold loan at an interest lower than on a personal loan. But interest rate on a gold loan rises with tenure.
  • The amount you can raise via a gold loan is higher than you can get via a personal loan.
  • Banks and NBFCs usually restrict the loan-to-value ratio on a gold loan to 75 per cent.

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