Which is better in 2025? Compare interest rates, eligibility, collateral, and repayment options.
When you need quick funds, both Gold Loan and Personal Loan are popular options in India. However, choosing the right one depends on your requirement, collateral availability, repayment capacity, and credit history.
This guide compares Gold Loans and Personal Loans in 2025, covering interest rates, eligibility, collateral, loan amounts, processing time, repayment tenure, and other factors to help you make the best financial decision.
Gold Loan is a secured loan where you pledge gold (jewelry, coins, or bars) as collateral to get funds. The loan amount depends on the value of gold, and interest rates are generally lower than unsecured personal loans.
Personal Loan is an unsecured loan, meaning no collateral is required. Banks and NBFCs approve personal loans based on credit score, income, and repayment capacity. Interest rates are higher than gold loans due to the risk involved.
Gold loans are accessible even with low or no credit history, while personal loans require a decent credit score.
Gold Loan EMIs are generally lower due to smaller interest rates but shorter tenure. Personal Loans offer longer tenure but EMIs may be higher due to higher interest rates.
Using online EMI calculators helps you plan repayment and avoid defaults.
Gold loans are faster for emergency short-term needs. Personal loans are better for planned long-term borrowing without collateral.
Yes, most gold loans don’t require CIBIL verification. Loan is based on gold value.
Small personal loans can be approved instantly via mobile apps; larger amounts may take 1–3 days.
The pledged gold may be auctioned by the lender to recover the loan.
Yes, most banks allow prepayment; check terms for charges.
Gold loan is ideal for urgent short-term funding; personal loan suits planned higher amounts.
This page provides general information on Gold Loan and Personal Loan for educational purposes only. It is not financial advice. For personalized guidance, consult a certified financial advisor or official bank/NBFC. All Finance Store is not responsible for any financial losses based on this information.