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Personal Loan vs Gold Loan

When a financial emergency strikes, choosing the right loan can make all the difference. This blog compares Personal Loan vs Gold Loan to help you understand which option is better during emergencies. Learn about interest rates, approval speed, eligibility, risks, and repayment flexibility so you can make a smart and stress-free decision when you need funds urgently.

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Personal Loan vs Gold Loan

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  1. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com Personal Loan vs Gold Loan: Which Is Better for Emergencies? Types of Personal Loans - Find the One That Fits You Best Need quick money for emergencies? Planning a wedding or home renovation? Want to clear old debts fast? A personal loan can help you handle it all - easily and quickly. Personal loans are flexible. You can use them for almost anything. From buying gadgets to paying medical bills, they fit every need. The best part? You don’t need to pledge security or assets. But do you know there are different types of personal loans? Each one serves a unique purpose. Choosing the right type can save you money and time. Some loans offer low interest rates. Others are designed for minimum documentation. Some are even approved within minutes, like instant loans online. Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  2. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com Banks and fintechs in India now provide smarter loan options. Whether you want a secured loan or an unsecured loan, you can find one that suits your lifestyle. So, before you apply, understand every type well. Know how loan rates differ. Learn which banks offer the best personal loan rates. And find out how to get a low APR personal loan without stress. Let’s explore all the major types, explained simply, with real examples, so you can pick the perfect one for your financial goals. What is a Gold Loan? A gold loan is a secured loan. You pledge gold jewellery or coins to the bank or NBFC. They give you money based on the gold loan rate per gram. •Loan value: 75-90% of gold’s market price •Interest rate: Usually 8%-12% per annum •Tenure: 3 months to 3 years •Process: Fast and easy Example: You pledge gold worth ₹2 lakh. You get about ₹1.6-₹1.8 lakh quickly. Gold loan interest is low because the gold acts as collateral. It’s great for instant cash without selling your asset. Key Features of a Gold Loan •Secured loan - backed by gold •Low-interest gold loan options are available •Quick disbursal - within hours •Minimal loan documents - just ID and address proof •Shorter loan tenure- ideal for short-term needs Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  3. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com Example: A homemaker with gold can get ₹2 lakh in 2 hours. What is a Personal Loan? A personal loan is an unsecured loan. You don’t pledge anything. Approval depends on your income, credit score, and repayment capacity. It’s ideal for: •Medical expenses •Home renovation •Travel •Debt consolidation Example: If your salary is ₹50,000/month and your CIBIL score is 750, You may get ₹3–5 lakh with a flexible tenure. Key Features of a Personal Loan •No collateral required •Flexible tenure - 1 to 5 years •Quick loans online •Higher loan interest – around 10%-18% •Strict loan approval process •Best personal loan rates available with a good credit score Example: You apply online and get ₹2 lakh within 48 hours. Gold Loan vs Personal Loan: Quick Comparison Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  4. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com Feature Gold Loan Personal Loan Type Secured loan Unsecured loan Collateral Gold jewellery/coinsNone Interest Rate8%-12% 10%-18% Tenure 3 months–3 years 1-5 years Documents Basic KYC KYC + income proof Approval Within hours 1-3 days Risk Loss of gold Credit score impact Loan Eligibility Criteria Gold Loan Eligibility •Anyone owning gold can apply •No income proof needed •Age: 18–70 years •Fast approval Example: Even a small business owner can get quick funds by pledging gold. Personal Loan Eligibility •Salaried or self-employed •Credit score: 700+ •Age: 21–65 years •Proof of income required Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  5. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com Example: A working professional with a stable income gets better loan interest rates. Interest Rate Comparison •Gold Loan Interest Rate: 8%-12% p.a. •Personal Loan Interest Rate: 10%-18% p.a. Gold loan interest is lower because it’s secured. Personal loans cost more but offer flexibility. Example: Borrow ₹1 lakh. Pay ₹2,600/month for a gold loan, or ₹2,900/month for a personal loan. Over time, that's a big savings. Loan Tenure and Repayment Gold Loan: •Short tenure (3 months–3 years) •Pay interest monthly •Principal at the end Personal Loan: •Longer tenure (1–5 years) •Fixed EMIs •Predictable payments Example: A gold loan helps with short-term needs. A personal loan helps with long-term goals. Loan Amount and Disbursal Gold Loan: •Based on gold’s value Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  6. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com •Disbursal within hours Personal Loan: •Based on income and credit score •Disbursal in 1-3 working days Example: Pledge gold worth ₹3 lakh → funds in 2 hours. Apply for a personal loan → ₹5 lakh in 2 days. Documents Required Gold Loan Documents •Aadhaar Card •PAN Card •Proof of Address Personal Loan Documents •Aadhaar, PAN •Bank statements •Income proof (salary slips or ITR) Example: Gold loan = quick and minimal. Personal loan = detailed and slower. Risk Factor Gold Loan Risk: You may lose your gold if you default. Personal Loan Risk: No asset loss, but your credit score drops. Example: A missed EMI on a gold loan can lead to gold auction. A missed personal loan EMI affects your future borrowing. Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  7. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com When Should You Choose a Gold Loan? Go for a gold loan when: •You own gold assets •You need instant money •You have a low credit score •You want low-rate auto loans or short-term credit •You prefer minimal documents Example: For medical or education emergencies, gold loans are best. When Should You Choose a Personal Loan? Choose a personal loan when: •You have a good credit score •You need a higher amount •You don’t want to pledge assets •You prefer longer repayment periods •You want structured EMIs Example: For marriage, travel, or business, personal loans work better. Current Gold Loan Rates in India Bank/NBFC Interest Rate (p.a.)Tenure HDFC Bank 8.5% – 11.5% Up to 3 years SBI 8.75% – 11.25% Up to 3 years Muthoot Finance 9% – 12% Up to 3 years Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

  8. One Stop for All Types Contacts: 011-43025308 |+91 9971740584 of Loans & Finance Services Email: info@upniva.com Manappuram Finance9.5% – 12% Up to 2 years Example: For a ₹2 lakh gold loan, your EMI may start from ₹6,500/month. Bottom Line So, Personal Loan vs Gold Loan - which one is better? It depends on your situation. •Have gold and need money fast? Choose a gold loan. •Need a higher amount or long tenure? Choose a personal loan. It is always important to compare interest rates, loan procedures, and eligibility criteria before choosing a loan. Prior to applying, check your EMI carefully to ensure it fits your monthly budget. With Upniva, you can easily compare loan options and select the one that aligns with your financial goals. Both loan options offer benefits-make an informed choice, pay your EMIs on time, and stay stress-free with smart borrowing through Upniva. How to Get a Personal Loan Without Any Security Personal Loan Myths vs. Facts You Should Know Resource: Personal Loan vs Gold Loan: Which Is Better for Emergencies? Our Location-1/25, Lalita Park, Laxmi Nagar, New Delhi, Delhi 110092

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