With the changing times, people are more comfortable with loans than before. Loans meet urgent cash requirements. Also, serve in managing finances. People are more inclined to take low-interest loans. Difference Between Gold Loan & Loan Against Property Comfortable installments help keep savings intact. Both gold loans and loans against property are collateral loans. Both of these loans have a low rate of interest and no restrictions. There are also minimal eligibility requirements in comparison to other loans. But the most important question is; which is more suitable, a loan against property or a gold loan?

Difference between a loan against property and a gold loan

Below mentioned is a quick guide to the key differences between a gold loan and a loan against property.

1. Collateral

Both gold loans and loans against property are secured loans. In a gold loan, you keep gold as collateral. While in a loan against property, the borrower pledges their property as collateral.

With Kamadhenu, individuals can give their gold as collateral and get gold loans quickly.

2. Eligibility Criteria

A borrower must meet specific eligibility criteria to take a loan. While taking a gold loan, the person’s profession, background, or credit score does not matter. This fact is indeed helpful for all potential gold loan borrowers. The eligibility criteria for a loan against property are more rigorous. With Kamadhenu gold loan, gold loan is quick and easy as they have schemes that perfectly meet your needs.

3. Loan Processing Time

Loan processing time is the time involved in the processing of the loan. This plays a crucial part especially when the requirement has to be met urgently. Usually, the loan processing time in the gold loan is limited and the approval process is seamless. On the other hand, the loan processing time is more in a loan against property. With Kamadhenu, opting for a gold loan is hassle-free. The request is processed instantly. Once the documents are submitted, the loan amount gets processed.

4. Repayment Tenure

The repayment tenure is one of the important deciding factors before opting for a loan. The higher the repayment tenure, the lesser EMIs. This means a longer tenure leads to costly loans. A gold loan usually comes with short repayment terms. The repayment term for a loan against property is long.

With Kamadhenu, individuals opt for flexible repayment tenures. This fetches them attractive gold loan interest rates.

5. Documentation Requirements

Gold loan application processes are responsible for helping borrowers and lenders to expedite the whole loan process. This helps them obtain their loan without the hassles. Lenders require only a few documents. This helps the loan to get disbursed.

Conclusion

To decide which loan is better depends on the individual’s needs, If individuals have a short-term need. They opt for a gold loan. While property loans are being taken when the needs are long-term. Also, the loan amount against property is higher than gold.For urgent cash requirements, borrowers take a gold loan as their processing time is less.