Tag - HDFC Gold Loan

Gold Loan vs Business Loan, Online Gold Loan, Compare Gold Loan Interest Rates, Hdfc Gold Loan, Icici Gold Loan, Sbi Gold Loan, Muthoot Gold Loan, Mannapuram Gold Loan, IIFL Gold Loan, Kotak Gold Loan

Gold Loan vs Business Loan

Sr No. Features Gold Loan Business Loan
1 Interest Rate Gold Loans, being Secured Loans, are offered by various Banks/NBFC at very Lower
and competitive interest rates which usually ranges between 10 % to 14 %. Some NBFC
charge even higher.
Business Loans, being unsecured loans, are generally offered at higher
interest rates ranging from 14 to 24 % a year.
2 Time Taken for Loan
Sanction and Disbursement
Gold Loan is a very less time-consuming process. Usually, it takes around 30
minutes to an hour to completely process and disburse the loan.
It is a time-consuming process. It generally takes around 5 days to 15 days
to completely process and disburse a business loan. It also depends on the
availability of documents.
3 Eligibility You just need to pledge Gold Jewellery (above 18 kt), your Address Proof and an Identity Proof. Eligibility for a Businessloan is decided on the basis of nature of business,
Turnover of Business, Income tax Return, Credit History and repayment capacity
of the Business entity.
4 Loan Amount The loan amount is decided by the valuer after assessing the Gold jewellery on the basis of
quality (above 18 kt.) and quantity (weight in gms.).
The loan amount is decided by the lender on the basis of Business Turnover,
its ITR and its credit history i.e its Repayment capacity to return the loan.
5 Collateral As these are secured loans, Gold jewellery is pledged as collateral in order to avail a
Gold Loan.
These loans are unsecured loans i.e offered without any collateral or security. However, before
sanctioning the loan, banks check credit score, age and past income statements of the business
6 Credit history No Credit history or score is required in order to avail a gold Loan. A good Credit history or Score is must for an individual in order to avail a business loan.
7 Income Proof or ITR You need not provide any Salary slip or Income proof or ITR in order to avail
a Gold Loan.
Income proof or ITR statement is must in order to avail a Business Loan.
8 Documents required Very less documentation is required in order to avail a gold loan. You just need to provide a
simple address (Aadhar Card/Driving License/Voter ID Card/Passport etc) and Identity proof
(Pan Card, Aadhar Card, Passport etc) for KYC.
Along with Address proof and Identity proof, the borrower is required to present bank account statements
of atleast last 6 months, Income Tax Returns of last 3 years, Proof of Business and ownership of the
posessions the are used in Business.
9 Loan Tenure Gold Loans are usually Short Term Loans. Generally, you can avail a gold loan for up to 1 year
which can further be extended to 3 years depending on your requirements.
Business Loans are usually short term and medium term loans. You can choose the tenure as per your
requirement. Generally, Loan tenure ranges between 12 months to 60 months.
10 Processing Fees Very Little processing fees or charges are levied by the Banks or NBFC for availing a Gold Loan.
Generally, it is NIL to 1 %.
Business loan indulges high processing fees or charges as compared to a Gold Loan.
Generally, it is 1 % to 3 %.
11 Repayment Options Gold Loan offers Flexible Repayment Options. Here, you have the optionto pay interest on Monthly,
Quarterly, Half yearly or Yearly basis depending upon your Loan plan. You can choose any of the
options as per your convenience.
Business loans doesn’t come up with loan flexible repayment options. You have to repay
your loan in equal amount or EMI once chosen as per the tenure of the loan.
12 Prepayment or Foreclosure
Charges
Generally it depends upon Banks/NBFC.You can close a Gold Loan any time by paying very less or
NIL prepayment charges. Normally, it is NIL to 1 %.
Generally, it is 1 % to 5 %. You have to pay higher prepayment or foreclosure charges as
compared to Gold Loan.

Gold Loan Vs Business Loan

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Gold Loan vs Personal Loan, Online Gold Loan, Compare Gold Loan Interest Rates, GoldLoanBazaar.com

Gold Loan vs Personal Loan

Gold Loan vs Personal Loan

 Sr.  Features Gold Loan Personal Loan
1 Interest Rate Being Secured Loans, Gold Loans are offered by various Banks/NBFC at very Lower and competitive interest rates usually at 10 % to 14 %. Some NBFC charge even higher. Like Being Unsecured Loans, the interest rate charged is usually high ranging from 14 % to 24 % or even higher. Unlike
2 Time Taken for Loan Sanction and Disbursement It is a very less time-consuming process. Usually, it takes around 30 minutes to an hour to completely process and disburse the loan. Like It is a time-consuming process. It usually takes around 1 day to a few weeks depending on the availability of documents. Unlike
3 Eligibility You can get a Gold loan if you have Gold Jewellery (above 18 ct.), Address and ID proof. Like Eligibility for the Personal loan is decided on the basis of repayment capacity of the applicant. Salary Proof or Income proof depending upon the type of employment. Unlike
4 Loan Amount The loan amount is decided by the valuer on the basis of quality (above 18 ct.) and quantity (weight in gms.) of Gold ornaments to be pledged in order to avail a loan.  Like The loan amount is decided by the lender on the basis of salary and income of the borrower i.e. its repayment capacity. Unlike
5 Collateral You have to collateral Gold Ornaments in order to avail a Gold Loan. Unlike You need not provide any collateral security in order to avail a personal loan.  Like
6 Credit History No Credit History or CIBIL score is required by the borrower in order to avail a Gold loan Like Credit History or CIBIL Score is a must for an individual in order to avail a Personal Loan. Unlike
7 Income Proof or ITR You need not provide any income proof or ITR is in order to avail a Gold Loan. Like You have to present Income Proof/ ITR in order to apply for a Personal loan. Unlike
8 Documentation Very less documentation is required in order to avail a gold loan. You just need to provide a simple address (Aadhar Card/Driving License/Voter Card/Passport etc) and Identity proof(Pan Card, Aadhar Card, Passport etc) for KYC. Like Along with Address proof and Identity proof, the borrower is required to present its Salary proof in case of salaried and Income tax return in case of self-employed business or professional and Bank A/C statement. Apart from this, Good Credit History or CIBIL score is must criterion in order to avail a personal loan. Unlike
9 Loan Tenure Gold Loans are usually Short Term Loans. Generally, you can avail a gold loan for up to 1 year. You can further extend it to 3 years depending on your requirement. Unlike Personal Loans are usually for short term and medium term loan. You can choose the tenure as per your requirement. Generally, Loan tenure ranges from 1 year to 7 years. Like
10 Processing Fees Very Little processing fees or charges are levied by the Banks or NBFC for availing a Gold Loan. Generally, it is NIL to 1 %. Like Personal loan indulges high processing fees or charges as compared to a Gold Loan. Generally, it is 1 % to 3 % Unlike
11 Repayment Options Gold Loan provides Flexible Repayment Options. Here, you have the option to pay interest on Monthly, Quarterly, Half yearly or Yearly basis depending upon your Loan plan. You can choose any of the options as per your convenience. Like A personal loan doesn’t provide any flexible repayment options. You have to repay your loan in equal amount or EMI once chosen as per the tenure of the loan. Unlike
12 Prepayment or Foreclosure Charges You can close a Gold Loan any time by paying very less or NIL prepayment charges. It depends upon Banks/NBFC. Generally, it is NIL to 1 %. Like You have to pay higher prepayment or foreclosure charges as compared to Gold Loan. Generally, it is 1 % to 5 %. Unlike

 

Gold Loan vs Personal Loan:

Summary: As per the above comparison, 10 out of 12 features clearly states that Gold Loan is highly preferable and most Liked Loan option as compared to above Personal Loan. Therefore, a Wise Person must always compare different Loan options before making a Final Decision.

Gold Loan vs Personal Loan: Which one to Choose?

  • Gold Loans are way better in terms of ease of availability, lower interest rates, fast processing with minimal documentation.
  • Even an unemployed person who isn’t eligible for a personal loan can avail a Gold Loan.
  • You will get Concessional Interest rate by the Banks if Loan taken for Agricultural purposes or availed by a woman.
  • Most beneficial for meeting short-term expenses or unforeseen emergencies.
  • Banks also offer overdraft facility against Gold to Businessman to meet the short-term working capital requirement of Businesses.
  • You will get full compensation for the gold in case of any  Thefts, fire etc.

You can Apply for Online Gold Loan now.

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