Gold Loan vs FD Loan vs Stock Loan: Which Asset Is Most Attractive In 2025?

With India's borrowing capabilities on the rise, numerous borrowers are seeking to secure personal loans by utlising either fixed deposits, gold or equities. These asset backed loans tend to bolster the pace of approval, attract lower interest rates, and easier approvals in comparison with unsecured lending options.

Lenders tend to find asset-backed loans comparitively safer as a result of collateral, and borrowers tend to find attractive  borrowing terms.  

Why Are Secured Loans Preferabble?  

The borrowers can raise money in form of a loan without having to sell assets given it can used as collaterals instead. Borrowers an utilise the value of extra assets without  liquidating them. In a nation, where gold and FDs are commonly secured loans, they can be considered a convenient mode of funding, especially for short-term needs.

FD-Backed Loans

Among the preffered loan choices, indiviuals tend to secure loans with fixed deposits as collateral, especially for risk averse borrowers. Lenders usuualy  keep 90-95 per cent of the fixed deposit amount at rates , which are just 1-2 per cent above the deposit rate. For instance, SBI provides FDs at 6.5 per cent to 7.1 per cent, and loan rates within the range of 7.5 per cent to 9 per cent

However, your FD continues to earn interest during the entire loan tenure allowing people to preserve both capital and liquidity. Meanwhile, these loans are much easier and seamless to secure.

Also Read: Jio Financial Services Ltd & Allianz To Form 50:50 Reinsurance JV

Gold Loans

Gold loans are secured loans wher the borrowers place their gold jewellery and assets as collateral to meet one's urgent needs seamlessly. This arrangement leads to a quicker access to funds with better repayment terms and lowers interest rates  as against unsecured loans.

With gold prices hovering in the range of Rs 95,000 - Rs 99,000 per 10 gram currently, loans against jewellery continue to remain a popular choice.

Stock-Backed Loans

Loans against shares and mutual funds provide up to 50 per cent of the asset value with applicable interest rates starting from 10.5 per cent. Still, such loans are a little different from gold loans and fixed deposit based loans. As these come with market risks. A sharp decline in share prices or mutual funds NAVs may result in margin calls or liquidation. These loans are prudent options for sincere and disciplined borrowers who have a high risk tolerance capacity.

This makes selecting the correct asset backed loan basis entirely on key factors like risk appetite, future financial goals, discipline and repayment potential.