Unlimited benefits with a start-to-finish digital process with IDFC First Bank Home Loans
The only FASTag with triple benefits
Inevitably, at some point in your life, you will require a loan. Hopefully, it will be a planned eventuality instead of an unplanned one – which usually means an emergency, and that’s hardly something to look forward to. Either way, you will be confronted with the option of taking either a personal loan or a gold loan (considering that Indians happen to be the most gold-happy people on the planet).
Both loans come with their own set of advantages and disadvantages. Let’s settle, once and for all, which one you should choose.
Simply put, a gold loan is a secured loan given against the amount of gold that you pledge. The quality and quantity of the gold are assayed, and the loan is provided against it. Since this is a secured loan, the interest rates are usually low.
A personal loan is an unsecured loan where you are not required to offer collateral. Instead, YOU are the collateral, and your credit score gauges this. Since no tangible collateral is provided, the terms of the loan are usually more stringent.
A personal loan trumps a gold loan simply because you have no asset to lose and long tenure. These are the two most important criteria to consider while taking a loan. Paying back a personal loan in time itself ensures an excellent credit rating, opening up numerous other financial options. Taking a gold loan is an option only when pressed against the wall and need quick relief.
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision