Loans & EMI Guide #35: Gold Loan vs Personal Loan — Which One is Smarter?

 

Need Quick Cash? Know Whether to Choose Gold Loan or Personal Loan (Detailed Breakdown)

Both are fast, easy loans — but they serve different purposes. Choosing the wrong one can cost you more than money.

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💳 Personal Loan Overview

• Unsecured (no collateral)
• Interest: 10–18%
• Tenure: 12–60 months
• Approval based on CIBIL, income, job profile

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🪙 Gold Loan Overview

• Secured (against your gold)
• Interest: 7–13%
• Tenure: 6–24 months
• Based on gold weight & purity, not your income

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🔍 Comparison Table:

Feature	Personal Loan	Gold Loan
Collateral	❌ Not Required	✅ Gold Required
Interest Rate	Higher	Lower
Approval Speed	Moderate	Very Fast (2 hours)
Eligibility Check	Strict (CIBIL, Income)	Flexible
Loan Amount Basis	Income	Gold Value

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🧠 When to Choose What:

• Low CIBIL or urgent need? → Gold Loan
• No gold, stable job, good score? → Personal Loan
• Short-term small loan? → Gold
• Longer repayment with higher amount? → Personal

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✅ Conclusion

Your gold can become your backup bank. In emergencies, it’s smarter to pledge it than get stuck in expensive EMIs — but always repay on time to avoid auctions.

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