Loan Tips: The gold loan is better than a personal loan, if you want to take it now then contact these banks...
When there is a sudden need for money, we remember personal loans first. If your CIBIL score is good, then you can get a personal loan anytime very easily. A personal loan is an unsecured loan, for which the applicant does not have to provide any security. But, it is very expensive. Its interest would be higher and EMI would also be higher. A gold loan is an alternative to a personal loan. Not only is it cheaper than a personal loan, but it also has many other benefits.
In a gold loan, loan is given against gold, so the interest rate on it is much lower than that of a personal loan. Along with this, due to the security of gold, its benefit is also available to those people whose credit score is bad. Gold loan is available faster than a personal loan. With the repayment of the loan, you get your gold back immediately.
In a personal loan, you have to pay a pre-payment charge, whereas, in a gold loan, this charge is not applicable. Apart from this, the processing fee for a personal loan also seems very high. Since a personal loan is an unsecured loan, it also hurts your credit score. On the other hand, due to the gold loan being secured, there is no problem if you take any other loan in the future even if the gold loan continues.
These banks are giving cheap gold loan
According to a report in cnbcTV18 Hindi, HDFC Bank is currently offering the cheapest gold loan in the country. HDFC Bank is offering Gold Loan at an annual rate ranging from 7.2 percent to 11.35 percent. Kotak Mahindra Bank is offering gold loans at an interest rate of 8 to 17 percent. The interest rates of Union Bank and Central Bank are starting from 8.4 percent. Similarly, the gold loan interest rates of UCO Bank, SBI, IndusInd Bank, Punjab and Sindh Bank, Federal Bank, and Punjab National Bank are starting from 8.5 percent to 9 percent.