Both personal loans and gold loans are commonly availed by many individuals to meet their financial needs. The process of availing such loans have been simplified thereby enabling applicants to avail instant personal loans. Let us have a look at the factors you have to check before applying for a personal loan or a gold loan.
6 Things to Consider Before Choosing a Personal or Gold Loan
While applying for a personal loan or gold loan, it is best to check for certain factors. Here are 6 important factors you should keep an eye on.
1. Loan Amount
The most important factor to check for is the loan amount offered by the bank or lending institution. Typically, the personal loan amount ranges betweenRs. 50,000 and Rs. 15 Lakhs. Some lenders extend their limit up to Rs. 40 Lakhs. The loan amount offered depends on the applicant’s repayment capacity and the chosen tenure. When it comes to gold loans, the loan amount depends on the LTV (loan-to-value) ratio of the lender and the collateral.
2. Interest rates
Check the interest rate offered as it would help you plan your repayment. Usually, the interest rate on personal loan varies between 10% and 24% per annum, whereas the interest rate of gold loan ranges from 7% to 29% per annum.
3. Repayment Tenure
Usually, the tenure for a personal loan ranges from 1 year to 5 years. Some lenders extend their tenure up to 7 years. The tenure for a gold loan goes up to only 3 years.
4. Disbursal Time
The applicant has to submit ITR forms and payslips while submitting the application form. The process of verification of the submitted documents typically takes up some time. Usually, the disbursal process takes between 2 days and 7 days. However, pre-approved personal loans take less time. Gold loans have the least disbursal time compared to other loans.
5. Processing Fees
The processing fee varies depending on the bank and the type of loan. For a personal loan, the processing fee varies from 1% to 3% of the loan amount. For a gold loan, the processing fee is up to 2%. Whereas, some lenders offer a fixed base charge of ₹10 and add up to this base charge.
6. Poor Credit Score
Personal loans are unsecured loans that require the applicant to prove their creditworthiness through their credit score. Several banks thoroughly check the credit profile of applicants. Gold loans are secured loans that are backed by collateral.
How to Apply for a Personal Loan?
The application process for a personal loan has been simplified by Finserv MARKETS. You can apply for a personal loan by following these 5 simple steps.
Step 1: Navigate to the personal loan application page on Finserv MARKETS.
Step 2: Fill in your personal details such as your name, mobile number, credit report, etc.
Step 3: Check your eligibility for a personal loan and choose a suitable personal loan tenure and loan amount based on your needs.
Step 4: Verify your identity. Once your identity is verified, the money will be credited to your bank account.
In a Nutshell
Opting for a personal loan and gold loan can meet your financial needs. You can avail of a personal loan on Finserv MARKETS and enjoy benefits like quick disbursal and easy application process.