What is a Gold Loan Balance Transfer?
A gold loan balance transfer is the process of moving a gold loan from one lender to another. You can move your gold loan account from one lender to another if you are unhappy with the customer service or if another bank offers a better interest rate. However, not every lender provides this service. Before moving the loan, consider whether it is worthwhile to do so and what benefits you might receive.
The lender usually determines the ease with which you can obtain a gold loan. This is determined by various criteria, including interest rate, loan-to-value ratio (LTV), and more. A gold loan provider may not offer you the best bargain for your gold in many circumstances, prompting you to refinance your gold loan. You might look for a gold loan transfer if this happens. These businesses can help you transfer your existing gold loan from a bank to a lender better suited to your needs.
What are the Benefits of Transferring Gold Loans?
The main benefit you can get from transferring a gold loan is:-
Why should you choose Gold Loan Balance Transfer?
Apart from the fact that you would save money on interest, there are a few other reasons to consider transferring your gold loan to a different bank. Here are a few of them:
- First, increase in value of your existing loan by 30%.
- Loan repayment choices that are flexible
- Loan increasing your savings by taking out a loan at a low-interest rate.
- Get a loan extension in 30 minutes or less.
- We are available to service 365 days.
- Annual Percentage Rate (APR) offered to customers from April 21 to March 21*.
- The minimum APR is 12%, while the maximum APR is 18%.
- Monthly payments are required, with a maximum of six months between charges.
- There are no processing fees.
Best Banks Interest Rates for Gold Loan Transfer Service
|Bank||Gold Loan Rate|
|Yes Bank||9.00% – 15.00%|
|Axis Bank||7.35% – 14.50%|
|SBI Gold Loan||7.30%|
|Private Bank||10.00% – 19.76%|
|IIFL Gold Loan||6.48% – 27%|
|Allahabad Bank Gold Loan||7.00%|
|Muthoot Gold Loan||12.00%|
|Federal Bank Gold Loan||8.50%|
|Manappuram Gold Loan||9.90%|
|PNB Gold Loan||8.75%|
Gold Loan Balance Transfer Charges
The charges involved in transferring a gold loan vary for every bank, depending on the existing lender and a new lender. However, some actual costs which are incurred are:
Eligibility Criteria for Gold Loan Balance Transfer
The qualifying conditions for transferring gold loans from one bank to another change by a financial institution, but the following are the common criteria:-
Documents Required for Gold Loan Transfer
In the case of a gold loan transfer, a lender will often request the following documents:-
Gold Loan Balance Transfer Process
Follow the below-given steps to transfer the gold loan from one lender to another bank:-
When should you use a Gold Loan Transfer Service?
- When you need immediate cash to get out of financial trouble.
- Instant money for business expansion, education, and other purposes.
- You’ve already taken out a gold loan and have been paying EMIs on it.
- You want a loan that requires less documentation and can be completed quickly.
- You require a gold loan with a lower interest rate than you already have.
✅ Which bank is best for a gold loan balance transfer?
Gold loans in India are offered by most of the banks and NBFCs. Muthoot, Federal Bank, Manappuram are considered acceptable because they provide balance transfers on loans at the lowest interest rate of 6.90%, 6.99%, and 7.00%, respectively.
✅ Can the gold loan be transferred from one bank to another?
Yes, you can transfer a gold loan from one bank to another if you get a lower interest rate with another bank or are not happy with the service of a lender. Also, you must have paid at least a few EMIs with your old lender to transfer the loan. In general, lenders prefer at least 12 EMIs to be paid before moving the loan.
✅ Can we get a top-up on a gold loan?
Yes, you can get top up on a gold loan if your lender offers this facility. Generally, lenders allow top-up loans if you have made all your EMI payments on time.
✅ Are there any charges for gold loan transfer?
Yes, you will have to pay various charges for the balance transfer of the gold loan. For example, you will have to pay foreclosure charges to your old bank, and to the new lender, you will have to pay processing fees. These charges may vary from bank to bank.
✅ Is a balance transfer of gold loan a good idea?
A balance transfer of a gold loan is a good idea if you transfer your loan to a bank that offers gold loans at a lower interest rate. The reduced interest rate can significantly bring down your EMI and help you save money.
✅ What is the best way for you to repay your gold loan?
It’s just as simple to foreclose on a gold loan as it is to get it approved.
Borrowers must, however, select a repayment strategy that meets their needs and does not feel burdensome. Salaried people, for example, should choose EMI payments over bullet payback if they have a long credit cycle.
✅ What happens if you don’t pay back your gold loan?
Gold is put up for auction.
Because the gold was pledged as collateral, failing to repay the loan (three consecutive installments or more) will result in the gold being auctioned off by the bank or financial institution. As a result, this is now a non-performing asset liquidated.
✅ How does a gold loan affect your credit score?
When you take out a gold loan, all of your EMI repayment information is sent to CIBIL at regular intervals so that your credit score can be updated in your credit history. Pay the EMIs on time to return the Gold Loan: Like any other type of loan, the gold loan has a defined interest rate and term.
Table of Contents
- 1 What is a Gold Loan Balance Transfer?
- 2 What are the Benefits of Transferring Gold Loans?
- 3 Why should you choose Gold Loan Balance Transfer?
- 4 Best Banks Interest Rates for Gold Loan Transfer Service
- 5 Gold Loan Balance Transfer Charges
- 6 Eligibility Criteria for Gold Loan Balance Transfer
- 7 Documents Required for Gold Loan Transfer
- 8 Gold Loan Balance Transfer Process
- 9 When should you use a Gold Loan Transfer Service?
- 10 FAQ’s
- 10.1 ✅ Which bank is best for a gold loan balance transfer?
- 10.2 ✅ Can the gold loan be transferred from one bank to another?
- 10.3 ✅ Can we get a top-up on a gold loan?
- 10.4 ✅ Are there any charges for gold loan transfer?
- 10.5 ✅ Is a balance transfer of gold loan a good idea?
- 10.6 ✅ What is the best way for you to repay your gold loan?
- 10.7 ✅ What happens if you don’t pay back your gold loan?
- 10.8 ✅ How does a gold loan affect your credit score?