Business
Gold Loan Vs Personal Loan: What Should Borrowers Choose During A Cash Crunch?
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Both gold loans and personal loans can address urgent financial needs, but the best choice depends on individual credit strength, urgency, and willingness to pledge assets
Gold loans offer lower interest rates due to collateral. (Representative/Shutterstock)
At a time when more individuals are facing sudden financial pressures, the question of whether to opt for a gold loan or a personal loan has become increasingly relevant. Both offer quick access to funds, but they differ sharply in interest rates, eligibility, speed, and risk, making it crucial for borrowers to understand which option suits their situation best.
Interest Rates
The biggest contrast between the two products lies in their cost.
- Gold loans, backed by physical gold as collateral, generally come with lower interest rates. Since the loan is secured, lenders face minimal risk.
- Personal loans, by contrast, are unsecured, pushing banks and NBFCs to charge higher interest rates, especially for borrowers without strong credit profiles.
When a Gold Loan Works Best
Financial experts note that gold loans have emerged as one of the fastest disbursal options in the market.
In situations like medical emergencies, urgent bill payments, or unexpected cash needs, gold loans can be sanctioned within minutes because they require minimal documentation and virtually no credit scrutiny. Borrowers with poor or thin credit history can also secure funds easily, as the gold itself acts as the guarantee.
Additionally, lenders offer flexible repayment structures, including interest-only payments or bullet repayment at the end of the tenure, a feature particularly helpful for freelancers, gig workers, and small business owners with irregular incomes.
When a Personal Loan Makes More Sense
For borrowers with a healthy credit score and longer-term financial commitments, personal loans remain an attractive option.
- These loans typically come with tenures of 3-5 years, allowing a structured and predictable repayment cycle.
- They also remove the need for collateral, which means no family jewellery or gold assets need to be pledged.
- However, applicants with weaker credit scores may face loan rejection or steep interest rates, making this option costly.
The Emotional Cost of Gold
Beyond financial considerations, experts also advise borrowers to weigh the sentimental value of gold. For many households, gold is an heirloom or a symbol of family security.
If a borrower fails to repay a gold loan, lenders are legally permitted to auction the gold, a risk that holds emotional consequences for many families. Borrowers are urged to take a gold loan only when confident of timely repayment.
November 27, 2025, 19:23 IST
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The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
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