Need emergency money? Loan against gold scores over personal loan

Here's how the gold loans by different banks stack up

Tinesh Bhasin
Last Updated at November 10, 2019 20:30 IST

In a personal loan, the loan amount depends on the borrower's income. In a gold loan, it's 60-80 per cent of the value of gold
Gold loan is the quickest and easiest to avail. A customer can get it within a day if the documents are in place
A borrower can get a gold loan at a lower interest rate than a personal loan
Most lenders don't charge a prepayment fee for a gold loan. For personal loans, usually, the borrower would need to shell out 2-4 per cent of the principal outstanding
Lenders have also started offering overdraft facility against gold
Under this facility, the borrower can withdraw funds according to his needs, and the interest is charged only on the amount utilised from the credit line provided

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