Collateral and EMI: For drawing loan against the gold loan a person has to pledge his gold assets while no such collateral is necessary for the personal loan. If a person fails to repay the loan on schedule, then there are higher chances that the pledged gold assets were sold by the lender, which is not the case in personal loan. However, EMI under personal loan may impact an individual's savings and spending. So, if a person has enough cash to repay the loan then he could go for a loan against gold, but if personal assets are not available or sufficient then personal loan is a better option.
Convenience: Loan against gold could be sanctioned effortlessly after processing of application and evaluation of the value of gold. However, a person might have to go through rigorous formalities for applying a personal loan.
Interest: Personal loans carry higher interest rates as they are unsecured while loans against gold are comparatively cheaper option.
Conclusion: If a person has sufficient personal assets that could be put to use then drawing loan against these assets is a viable option as opposed to taking a personal loan. In the case of sufficient collateral, a person might have to just pay interest component on the loan, and there is no threat of hurting credit score in the process. The lower interest rates too exhort less pressure on an individual's income.