Gold Loan: The interest rate of gold loan is not only low, but it is also available quickly. Being a secured loan, it does not have any negative impact on the credit score.
New Delhi. When there is a sudden need for money, we remember personal loan first. If your CIBIL score is good, then you can get a personal loan anytime very easily. 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. Gold loan is an alternative to personal loan. Not only is it cheaper than a personal loan, it also has many other benefits.
In gold loan, the loan is given against gold, so the interest rate on it is much lower than that of 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 personal loan. With the repayment of the loan, you get your gold back immediately.
In personal loan you have to pay pre-payment charge, whereas in gold loan this charge is not applicable. Apart from this, the processing fee in personal loan also seems very high. Since personal loan is an unsecured loan, it also has a negative impact on your credit score. On the other hand, due to the gold loan being a secured loan, there is no problem if you take any other loan in future even if the gold loan continues.
These banks are giving cheap gold loan According to a report in
cnbcTV18 Hindi, at present HDFC Bank is giving the cheapest gold loan in the country. HDFC Bank is offering Gold Loan at an annual rate ranging from 7.2 per cent to 11.35 per cent. Kotak Mahindra Bank is offering gold loan at an interest rate of 8 to 17 per cent. 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 per cent to 9 per cent.
