Which Is Better - Gold Loans or Instant Personal Loans?

Which Is Better - Gold Loans or Instant Personal Loans?

Confused between availing a gold or a personal loan? You are at the right place because FlexSalary’s here to help you out!

Instant Personal Loans

High Tenure

Personal loans often have greater tenure than gold loans, often stretching up to 5 years. Some lenders even offer a tenure of 7 years. This reduces the monthly EMI payment and borrowers can easily pay the debt off without a strain on their finances.

Minimal Documentation

These days, lenders have made it simpler to apply for personal loans online with an easier faster verification process and internet has made it possible. A borrower can easily get money credited in his account without even a single visit to the lender. FlexSalary also offers minimal documentation and you can receive your instant personal loan within a day.

Competitive Interest Rates

Both gold loans and instant personal loans offer competitive interest rates ranging from 10% up to 25%. So, there’s no real winner here.

Speed

Lenders of personal loans online usually aim to process your application within one working day and hence many prefer availing personal loans, especially in case of emergencies.

Gold Loans

Lesser Emphasis on Credit Score

Since you are providing collateral in the form of gold, lenders do not give much weightage to credit score. So, if your score falls under the premium 700 mark, then you would be better of choosing a gold loan.

Higher Loan Amount         

Most lenders cap personal loans at ₹ 25 lakhs but gold loans are usually based on the collateral and can stretch up to ₹ 1 Cr. If you are looking for a higher loan amount, then you may consider a gold loan. Gold loans can also be availed for as low ₹ 1000 whereas personal loans are often offered in multiples of ₹ 5000. However, if you choose a line of credit, such as FlexSalary or a credit card, then you can withdraw only as much as you need and interest will be charged on the withdrawn amount.

There, we hope that this has cleared up some of your questions. If you are unable to decide between the two, we recommend to choose the one which has a lower interest rates. Interest rates vary from lender to lender and for personal loans, your credit score influences the APR. So, if you have a low score, you would have a higher APR.

However, if you are looking for a reusable option, we recommend choosing FlexSalary. This is a lifetime credit line which you can reuse as many times as you like. You will be charged only for the withdrawn amount.

To talk to our customer care and get a personal line of credit now, click here!