Here to help you make an informed financial decision


When seeking financial support, two commonly considered choices are Gold Loans and Personal Loans. While both offer rapid access to funds, they vary in eligibility criteria, interest rates, repayment conditions, and other aspects.

Let us compare Gold Loans and Personal Loans, aiding you in making a well-informed choice that aligns with your specific requirements.

Easy Eligibility:

  • Gold Loan: One of the major advantages of a Gold Loan is its easy eligibility criteria. You can get a Gold Loan by pledging your gold jewelry or ornaments as collateral. Lenders focus more on the value of the gold rather than your credit history, making it accessible to individuals with a poor credit score.

  • Personal Loan: Personal Loans, on the other hand, are unsecured loans that do not require collateral. Lenders evaluate your credit score, income, employment stability, and other factors to determine your eligibility. Having a good credit score is usually essential to qualify for a Personal Loan.

  • Interest Rates and Fees:

  • Gold Loan: Gold Loans often come with lower interest rates compared to Personal Loans. Muthoot FinCorp ONE, for example, offers Gold Loans at rates as low as 0.83% per month

  • Personal Loan: Personal Loans generally have higher interest rates than Gold Loans. The interest rates are typically based on your creditworthiness and can vary significantly. Additionally, Personal Loans may come with processing fees and other charges, which can add to the total cost of borrowing.

Loan Amount and Repayment:

  • Gold Loan: The loan amount for a Gold Loan depends on the value of the gold you pledge. You can use the Muthoot FinCorp ONE app or website to calculate the value of your gold and determine the loan amount instantly. Gold Loans often offer flexible repayment options, allowing you to choose a plan that suits your financial situation.

  • Personal Loan: Personal Loans usually offer higher loan amounts compared to Gold Loans. The loan amount is determined based on factors such as your income and creditworthiness. Personal Loans come with fixed repayment terms, and you need to repay the borrowed amount in monthly installments over a specified period.

Documentation and Processing Time:

  • Gold Loan: Gold Loans involve minimal documentation, primarily focusing on verifying the authenticity and value of the gold. With doorstep services offered by Muthoot FinCorp ONE, you can get a Gold Loan without leaving the comfort of your home. The processing time for Gold Loans is typically quick, and you can receive the funds in as little as 30 minutes*.

  • Personal Loan: Personal Loans generally require more documentation, such as income proof, bank statements, and identity verification. The processing time for Personal Loans can take a few days to a week, depending on the lender's approval process and the completeness of your documentation.

Risk and Security:

  • Gold Loan: With a Gold Loan, your gold acts as collateral, reducing the risk for the lender. In case of default, the lender can sell the gold to recover the loan amount. Additionally, gold stored at Muthoot FinCorp ONE branches is insured and tracked during transit, ensuring its safety.

  • Personal Loan: Personal Loans are unsecured, meaning they do not require collateral. However, if you default on the loan, it can have a negative impact on your credit score and may lead to legal action by the lender.

Both Gold Loans and Personal Loans have their own advantages and considerations. Gold Loans offer easy eligibility, lower interest rates, quick processing, and the security of collateral. Personal Loans, on the other hand, are accessible based on creditworthiness, offer higher loan amounts, and don't require collateral. Consider your financial situation, credit history, and immediate needs to determine which loan option aligns with your requirements and repayment capacity. Remember to compare different lenders and their terms before making a final decision.

About Muthoot FinCorp ONE

Muthoot FinCorp ONE is an all-in-one digital financial platform that makes getting an MSME & a Gold Loan, investing in Digital gold & NCDs, making payments & remittances, buying insurance & exchanging forex, simple and convenient.

As an SBU of Muthoot FinCorp Limited, Muthoot FinCorp ONE is backed by a legacy stretching back over 135 years, and the trust of more than 1 crore customers and is building a holistic financial ecosystem using the latest digital products for lending, investing, protection and payments.

Muthoot FinCorp ONE continues to uphold the values of the parent, the Muthoot Pappachan Group (Muthoot Blue) by providing its customers with easily accessible services, replete with unmistakable quality. The Muthoot Pappachan Group is among India’s most reputed names in the financial services industry, with customers in diverse segments like Automotive industry, Financial Services, Hospitality, Alternate Energy, Real Estate, and Precious Metals.

So what are you waiting for? Head to the Play Store and download the Muthoot FinCorp ONE app. You can also visit the website today to know more.

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