Loans & EMI Guide #60: Gold Loan vs Personal Loan — Which Is Better in Emergency?

 

Need Fast Cash in an Emergency? Here’s the Better Option Between Gold Loan & Personal Loan

Both loans give fast cash — but they work very differently. Choosing the right one can save you from heavy interest and financial stress.

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🪙 Gold Loan – Overview

• Collateral: Physical gold
• Interest: 8–12%
• Tenure: Up to 3 years
• Disbursal: 1–2 hours
• No CIBIL check needed

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💳 Personal Loan – Overview

• No collateral
• Interest: 10–24%
• Tenure: 1–5 years
• CIBIL must be 700+
• Slightly longer disbursal time

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🧠 When to Choose Gold Loan

• Low or no CIBIL score
• Immediate emergency (hospital, home repair)
• Want lowest possible interest

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💡 When to Choose Personal Loan

• You don’t want to risk gold assets
• You have strong credit score
• You want longer repayment flexibility

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✅ Conclusion

Gold loans are cheaper and faster — but risky if you default. Personal loans are safer (for your assets) but costlier. Choose based on urgency, credit score, and your comfort with collateral.

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