When you’re short on cash, this loan could save you thousands

Gold loans win on one big factor: security for the lender means lower cost for you. Your jewellery becomes your safety net — but only if you repay before the ticking interest clock runs out.

While gold loans start cheaper, personal loans hinge on your credit score. A borrower with a 750+ score may close the gap — but for most, unsecured borrowing bleeds more over time.

In emergencies, time is cash. With a gold loan, valuation to disbursal can happen in hours. Personal loans, despite digital promises, often get caught in documentation drag and credit checks.

Gold loans carry emotional weight — your heirloom stays locked until repayment. Miss payments, and that keepsake could go under the hammer. With personal loans, your risk is reputational, not physical.

Gold loans are quick exits — short-term fixes for short-term needs. Personal loans stretch longer, offering comfort through fixed EMIs, but at the expense of higher total interest outgo.

Freedom costs — or saves. Gold loans often allow early repayment with minimal penalties, while personal loans can charge fees. The faster you close, the more you cut the lender’s bite.

Many chase “low interest rates” but ignore fees — processing, insurance, late charges, top-up add-ons. Always check the effective annual cost, not just the shiny headline rate.

Using family gold can feel uncomfortable — but if the math works, it’s a practical move. For sentimental assets, consider only short durations to avoid both risk and regret.

The smartest borrowers match loans to goals. Urgent, short-term cash? Go for gold. Need longer comfort? Choose personal. Either way, clarity — not convenience — determines your true cost.