Gold Loan is Much Preferred Over Personal Loan

Firstly to compare any two things and to draw a conclusion in between them, we should talk and differentiate the categories they belong to and likewise when we look at Gold loans and Personal loans, they eventually belong to the categories named as Secure Type of Loans and Unsecured Type of Loans, respectively. Now as we understood how both the loans are classified or what categories they belong to, as the name of the category itself suggests that gold loan is secured whereas personal loan is unsecured. And this might give you a gist on how and why gold loan is always considered as a better option in comparison to that of the personal loan. 

Then next in comparison is why people feel gold loan to be a convenient option than personal loan and we can take in consideration of the time the both take to complete the process. And coming to briefing this, gold loans can be done with the processing just in few minutes and might on a maximum may last upto an hour or so. Whereas on other hand, personal loans take a whole lot of week’s time in maximum. So the preference of gold loan here is obviously understood.

Next is, if we take a  look close on, why there is such a huge number of days of difference in the processing time, then let us tell you it also depends on the documentation requirements from the two different loans ask for. Minimal documentation is the one which has to do with the gold loan having such a less period of processing time, as it may generally only ask the borrower for their very basic government ID proofs such as Aadhar card, Driving License, PAN Card, etc and the any among these mentioned ones are acceptable. So, now coming to the personal loans, they ask borrowers for more number of documents where proof of income is made mandatory and this includes the Income tax report, payslips and bank statements of required. 

Next which attracts most people towards the gold loans is because of the transparency it offers people. This can be one major point which people like to believe in and move forward with in term of their concerns and worries, this way they think that everything is moving forward just before their eyes and with their knowledge and no one has to worry about anything being overcharged with their approval. However, the gold loan per gram may not be the same every borrower can find a similarity with others, because the banks may offer different per gram gold loans, so can’t expect it to be the same all over.

In a similar way, when we take into consideration and compare the processing fee which is put out on the borrowers, it is so very obvious that no one likes to pay high amounts of fee in any scenario and always opt for something less, so therefore they feel PNB gold loan are better as there is the least and very minimal fee and also at times, some banks offer zero processing fee process. Whereas personal loans in this case regarding processing fee, they charge almost upto 3% which is high in comparison. So therefore gold loan at any days, are the safest and more convenient than personal loans!