There are not many financing choices from the composed financial area that give the adaptability of personal loan when you need some emergency assets in a rush. However, specific sorts of verified loans, for example, gold loan is developing as an option in contrast to personal loan because of the double advantages of negligible documentation and extremely quick disbursal. Both of these loans have their advantages and disadvantages and may prove beneficial or become a financial burden for the individual.
Here is a quick look at the advantages and disadvantages of these two sorts of Loans if you are wondering which one of them will be right for you.
Fincare Small Finance Bank Personal Loan
A personal loan is the easiest way to overcome your financial crisis. It is a life saver. As the name suggests, a Personal Loan may be opted by an individual due to an urgent requirement of cash, for example, any medical issue, education purpose or wedding or to fulfil any of your other personal needs.
Fincare Small Finance Bank Personal Loan is an unsecured loan that needs no documents of any collateral but all you need to do is just submit your personal documents to the bank.
Advantages of Fincare Small Finance Bank Personal Loan
No collateral: It is the best advantage of personal loan. The borrower does not have to keep any kind of property as collateral with the bank while availing for a personal loan
Flexibility: Personal Loan can be taken for any purposes such as a wedding, home construction, educational purpose, expensive holiday trips and medical needs. In fact, the only uses that are not allowed to include speculative or illegal activities.
Less documentation: Fincare Small Finance Bank Personal Loan doesn’t require any kind of elaborate documentation. The applicant has to present a KYC information document and proof of income as required by the bank.
Instant Disbursement: If the applicant is eligible and qualified for the loan, the loan amount will be credited within 48 hours after the approval.
Gold loan is a kind of secured loan that is also considered as a collateral based loan. It is a great option for short term money requirement or if you are in a hurry to raise funds.
Easy and rapid loan processing: Gold loans are easy to process, they do not ask for tons of papers and formalities. If your gold is pure, the lender will grant you the loan, depending upon the terms and conditions.
Flexible repayment structure: Gold loans have a flexible repayment structure as it allows you to pay interest during or after loan tenure, paying off the principal later or repay the loan amount in set EMIs.
Affordable interest rates: The gold generally has cheaper interest rates, as against other types of loans. This is the key reason why people prefer gold loans over any other loans these days.
High Margin required: Banks only offer you a loan of up to 75% of the value of your gold. While the remaining 25% cannot fetch you a loan that acts as a margin for banks in case of nonpayment.
Loss of your gold: In case you fail to repay the loan or interest on time, the bank can liquidate your gold to recover their money.
Only for short tenures: The gold loans are generally not given for more than 3 years or preferably shorter tenures, which is a big drawback for loan seekers.
Hence personal loan is considered to be more beneficial than a gold loan.