India is one of the world's top gold users, and the precious metal is used for more than just business, industry, and investment. It is also seen as a lucky buy because it is used frequently in religious ceremonies and weddings. Gold can also be used to secure a loan in times of financial need. In general, applying for a gold loan is a simpler process than applying for a standard loan. You can still get authorised for a gold loan with fewer documentation if your credit score is low. However, you must be careful to avoid debt traps and only borrow from reputable lenders.

The gold is used as collateral for the loan amount in a gold loan. A specific portion of the gold's value is used to determine how much of a loan is given. The purity of the gold and other factors influence the loan amount. There are no usage limitations on gold loans, in contrast to other secured loans like auto or housing loans.

Characteristics of an Instant Loan

You must upload all of your supporting documentation when applying for a quick instant loan, and the process is completely paperless. If you are a preapproved customer, you will need to provide very few or no papers. You can apply for an instant loan without providing any security or collateral because it is an unsecured personal loan.

Compared to other secured loans,gold loans have lower interest rates. Lenders charge different rates of interest for loans secured by gold. In comparison to banks, NBFCs will impose lower interest rates. The typical gold loan term is three to twelve months. Depending on your circumstances, the lender might grant you a longer grace period or prolong it in the event of late payments.

Eligibility requirements

The eligibility requirements for Gold Loan and Instant Loan are different.

For Instant loans

Assume you are an Indian citizen who is employed and at least 18 years old. In that situation, registering on the Ruptok app or website would make it simple for you to apply for a quick loan.

For Gold Loan

On the other hand, a gold loan is available to everyone who owns gold. You are qualified to apply for a gold loan if you live in India and are a salaried professional, businessperson, housewife, or even a farmer. Therefore, even if your credit score is bad, you may still be able to secure a loan if you have enough gold to put up as collateral. However, this procedure entails paperwork.

Conclusion

Get a fast loan if you have no credit history and need money right away without putting up any security. However, obtaining a gold loan can be your best alternative if you meet the eligibility requirements but are not employed and have some actual gold on hand. In India, Ruptok is a user-friendly fast loan platform. To apply for a gold loan, you only need to upload your identification, such as your PAN card, address ID proof (such as an Aadhar card), and a bank statement.