Indians attach a lot of sentiments with their gold. Therefore India is the biggest Gold consumer in the world. Ahead of Dhanters, Akshay Tritiya, or Navratri, marketplace comes up with lot of offers and schemes on the sales of gold and Personal loan to fulfil the upcoming requirements of festivities.
You can get instant liquidity against your gold without parting them off. To avail cash against gold, several leading financial institutions have made it possible, in recent years.
Although both the kind of money lending works in similar terms, they are quite different. Often the functioning of personal loan and the gold loan is confused by people. Here is the detailed information below, how both the function of the loan.
Why It is a wise decision to go for Personal loan is the fastest growing option for consumers today. It is the loan for all-purpose, where there is no collateral required. These days with the invent of technology, one can apply for a personal loan sitting at the comfort of their home.
In times of emergency needs, one can get the funds at a very short span. The interest rates are lower and are availed for long periods. There is no collateral required and one has to submit minimum documentation to avail the personal loan.
Ranging between Rs 15000 to 10lacs there is a variable range of amount and one can avail as per their requirement. Some times of personal loans are available with additional benefits like insurance coverage.
Time to time, financial lenders keep on announcing schemes and offers for personal loans. Personal loans are great. If you find yourself in a financial ditch, personal loans come as a huge support to rely on.
Loan Interest Rates* Processing Fees
11.00%
|
In the range of 0.5% to 1%
| |
HDFC Bank
|
15.50%
|
Up to 2.50% of loan amount
(Min Rs. 1,999; Max Rs. 25, 000) |
11.25%
|
Up to 2.25% per annum of
loan amount + GST | |
Bajaj Finserv
|
12.99%
|
Up to 3.99% of the loan amount/td>
|
Citibank
|
10.99%
|
Up to 2.0%
|
IDFC Bank
|
11.50%
|
Up to 1% of loan amount
|
Axis Bank
|
15.75%
|
Up to 2.00%
|
Tata Capital
|
11.25%
|
Up to 2.5% + GST
|
Fullerton India
|
20.00%
|
Up to 6.50%
|
IndusInd Bank
|
11.99%
|
Min 1% to Max 2.50%
|
Kotak Bank
|
11.25%
|
Up to 2.5% plus tax
|
RBL Bank
|
14.5%
|
Up to 3%
|
IIFL
|
13%
|
Up to 2% + GST
|
HDB Financial
|
13.99%
|
Up to 2% of loan amount
|
Karur Vysya Bank
|
13.90%
|
0.30% (Min Rs. 500)
|
PNB
|
12.00%
|
1.80% + taxes
|
Vijaya Bank
|
12.90%
|
0.10%, Max. Rs. 10000 + ST
|
Union Bank of India
|
12.60%
|
0.50%, Min Rs. 500
|
Syndicate Bank
|
14.20%
|
0.50%, Min Rs. 500
|
Standard Chartered Bank
|
11.99%
|
0%
|
Indian Overseas Bank
|
12.45%
|
0.60%
|
Andhra Bank
|
12.85%
|
Case to Case
|
Bank of Baroda
|
11.60%
|
2%, Min Rs. 250
|
Bank of Maharashtra
|
12.95%
|
1%, Min Rs. 1,000
|
Canara Bank
|
14.10%
|
1.0%
|
Corporation Bank
|
12.90%
|
1.50%, Min Rs. 500
|
Dena Bank
|
11.60%
|
2%
|
Federal Bank
|
10%
|
0.5%, Min Rs. 500
|
IDBI Bank
|
12.50%
|
1% + applicable taxes
|
Allahabad Bank
|
12.80%
|
1.06%, Min- Rs. 1068
|
Indian Bank
|
14.20%
|
0.51%, Min- Rs. 510
|
Yes Bank
|
10.75%
|
Starting at 0.99%, Up to 2.5%
|
Gold loan vs Personal Loan
Gold loan is a credit which can be procured by pledging Gold as collateral to the lender. Anyone who owns gold can apply for a gold loan. Be it jewellery or even gold coins. It is one of the easiest way of getting loans.In recent years many leading financial institutions and NBFC’s have come up with several schemes and offers to help people with gold to avail loans in order to meet their financial expectation. One of the major drawbacks of gold loan is that if one is unable to repay the loan amount, the results are hazardous.
The prices of gold loan keeps fluctuating, therefore to obtain gold loan, the calculation of loan value is done in different ways. Some calculate the gold value of gold value of last two weeks prices, and then take an average price in determining the rate per gram of gold, while some take the daily valuation of gold for evaluating the rates. Consider which plans suits you the best and which plans gives you a higher value to your gold.
Gold loan is offered by lenders for a short period of time as compared to personal loan and hence it is risky for the consumer. Many times there arises financial emergencies where we fall short of finances and unable to repay the loan. This increases the chances of getting our collateral seized by the lender. The penalties levied upon non-repayment of the loan amount is huge and risks are involved with it.
Top Lenders Interest Rates
Name of the Bank
|
Interest Rate (p.a.)
|
Loan Amount
|
Loan Tenure
|
ICICI Bank
|
10.0% to 16.70%
|
Rs.10,000 to Rs.15 lakh
|
6 months to 12 months
|
Axis Bank
|
15% to 17.5%
|
Rs.25,001 to Rs.20 lakh
|
6 months to 36 months
|
HDFC Bank
|
10.1% to 16.05%
|
Rs.10,000 onwards
|
6 months to 48 months
|
Canara Bank
|
12.00%
|
Rs.10,000 to Rs.10 lakh
|
12 months
|
Muthoot Finance
|
0% to 27%
|
Rs.1,500 onwards
|
7 days to 12 months
|
Bajaj FinServ
|
12% onwards
|
Up to Rs.10 lakh
|
Up to 240 months
|
State Bank of India
|
9.70%
|
Rs.20,000 to Rs.20 lakh
|
12 months to 36 months
|
Kotak Mahindra Bank
|
10.5% to 17%
|
Rs.25,000 to Rs.25 lakh
|
3 months to 36 months
|
IndusInd Bank
|
11.25% to 15.50%
|
Up to Rs.10 lakh
|
3 months to 12 months
|
Manappuram Finance
|
Up to 29%
|
Up to Rs.1.5 crore
|
3 months
|
Above points mentioned will assist you in deciding which options to choose from, for your emergency financial demands.
As Gold loan is stringent and involves lot of risk factors, in terms of penalty and higher chances of not getting back on defaulting, it is suggested one should go for Personal loan.
