If I have some valuable pieces of gold, is it better to take out a normal personal loan or a gold loan?
Gold loans can be very valuable and do not affect your credit score as much. However, there are a lot of factors to take into account before making this decision. First, you will likely need solid 18 carat gold or better to be able to get a loan from it. Next, you should be checking gold’s value. If the price of gold is low, you may not want to get a loan with it, whereas if the price of gold is high, you can probably access more money and pay lower interest rates.
On the other hand, personal loans are easier to acquire, have shorter tenures, and do not require collateral much of the time. Thus, the flexibility of these personal loans can be very attractive for people. However, you will probably pay higher interest rates if it is not secured.
Overall, gold loans can offer a lot of benefits, but if you want flexibility and don’t want to use your precious gold as collateral, I recommend personal loans.