2023-12-22 13:26:32
In Indian society, living a budgeted life is a common practice for many. However, situations may arise where individuals need to seek out loans for various expenses such as education or emergency medical bills. When faced with the option of obtaining a gold jewelry loan or a personal loan from a bank, it’s important to consider which option is more likely to be approved and what the interest rates and loan amounts are.
In terms of loan approval, gold jewelry loans are generally more likely to be approved compared to personal loans. This is because gold jewelry serves as collateral, providing a sense of security to lenders. In the event that the borrower is unable to repay the loan, the lender can simply recover the loan money by taking possession of the jewelry. On the other hand, personal loans require a careful consideration of the borrower’s ability to repay the loan, including their income source and credit score.
When it comes to interest rates, personal loans typically start at around 10.5 percent per annum, depending on the lender and the borrower’s credit score. Public sector banks may offer personal loans at lower interest rates. On the other hand, gold jewelry loans, being secured loans, often come with lower interest rates than personal loans.
The amount of loan that can be availed also differs between the two options. Personal loans can range from Rs 50,000 to Rs 15 lakh, with some banks even offering loans up to Rs.40 lakhs based on the borrower’s income and credit score. In contrast, gold jewelry loans allow borrowers to avail a loan for up to 75 percent of the value of their existing jewelry.
Ultimately, when deciding between a gold jewelry loan and a personal loan, individuals should carefully consider their financial situation and needs in order to choose the option that works best for them.
#Personal #Loan #Gold #Jewelery #Loan. #urgent