When we compare the gold loan with the credit card these are the factors which should be known as the credit card is only a normal card given by the bank after having a long procedure. Here are the points which you don’t know about credit cards and gold loans.
Process and Application
The procedure of the gold loan is as simple as anything. You can have the least documents and the credit score to apply for the gold loan as there is no such factor related to the gold loan that you can't vail if you are having the least credit score. the people you get the loan even include the people having the least documents and their payments history is not that great if someone is a migrant. Sometimes, they need and instant money could avail the gold loan by any bank by putting the best amount of gold and deposit it to the bank. The gold loan eligibility is different for banks but there are common factors.
On the other hand, the scenario is different in the use of credit cards. The procedure is not as simple as the gold loan. It can take a few weeks to a month to get the credit card as they will verify all the documents and the credit score is the most important factor when it comes to the credit card. if you were a defaulter earlier and had bad bank history then there is a possibility they will cancel the application.
The belongings and collateral
The gold loan is said to be the secured one. This secured loan will demand your collateral. The ornaments you are going to deposit are the ones which you will get after the maturity of the loan when you will pay all the money and interest then only the ornaments will take back to your house. If you fail to pay the money then the only thing is that you will be going to lose the gold which you have deposited for the loan in the bank. The oriental bank of commerce gold loan you can check and vail it’s having benefits.
The case is different with the method of the credit card when you are having a credit card. It said that the credit card is an unsecured loan. They will not be going to ask for any kind of guarantee but they will check the credit score which is the key point for the credit. If you are having a good credit score then there are chances that you will be getting the credit card early and it will be within a week.
Payment and interest
The payments for the gold loan are simply because it’s having the least interest rate. The interest rate of the banks may vary from bank to bank. The bank will provide a good interest rate when we compare it with the NBFCs, but it’s a secured loan so there will not be any kind of problem as if someone is unable to revert the money then the loss will be their assets. The payment for this varies from 3 months to 36 months. And you can get 80% of the value of the gold.
This is not the case with a credit card, as the interest may vary from your payment method but when you pay the amount even every month the interest may go high till the end, so the annual interest may be higher when we compare it with the gold loan. The tenure will be till 4-5 years. Lastly, the gold loan is far better than the credit card you can avail of the gold loan anytime when you need money. The case will be for not for a credit card as it will take time, and the interest rate may vary for the credit card.