IDFC First Bank Gold Loan Balance Transfer


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IDFC First Bank Gold Loan Balance Transfer

What is an IDFC First Bank Gold Loan Balance Transfer?

IDFC First Bank Gold Loan Balance Transfer is a simple process of transferring the outstanding gold loan from one lender to the other.  You can easily avail of a top-up from the IDFC First Bank at the time of gold loan balance transfer, in order to fulfill the additional fund requirements. You can easily move your gold loan from one lender to other, if you are not satisfied with the customer services or if the other offer is providing you an affordable interest rate.

 Interest rate, loan-to-value ratio (LTV), and other factors are used to determine the chances of you getting the gold loan. In many cases, a gold loan provider may not offer you the best deal for your gold, prompting you to refinance your gold loan. If this happens, you might want to consider transferring your gold loan. These companies can assist you in transferring an existing gold loan from a bank to a lender that is better suited to your requirements.

What are the Benefits of IDFC First Bank Gold Loan Balance Transfer?

Following are the main benefits you can get from transferring a gold loan:-

  • It provides you to avail the top-up facility and fulfills your cash requirement.
  • NBFCs will lend up to 70% of the current gold value, while most public and private sector banks will lend up to 65 percent.
  • A new lender may be able to offer you a lower annual interest rate of as low as 9.00 percent.
  • You can see that reduced EMIs result from a lower interest rate, which saves money.
  • You can get superior loan features like no processing costs and flexible payback arrangements.
  • Finally, you can increase the security of the gold you’ve promised. For example, you can purchase insurance against robbed and other damages while in transit.

Why should you choose IDFC First Bank 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:

  • Increase the value of your existing loan by 30%.
  • Flexible Loan repayment choices.
  • Increase your savings by taking out a loan at a low-interest rate.
  • Get a loan extension in 30 minutes or less.
  • 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
HDFC Bank 9.00%
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%
IDBI Bank 7.00%
PNB Gold Loan 8.75%

IDFC First Bank Gold Loan Balance Transfer Charges

The various 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:

  • Foreclosure Charges – Foreclosure charges or pre-closure charges, are the charges which you pay to your existing lender. A moneylender incurs the charges to cover the lost interest due to closing the loan account before time. The foreclosure rate for every bank is different and generally starts from nil to even up to 1%.
  • Processing Fees– The banks and NBFCs charge a processing fee that ranges between up to 1% of the loan amount.
  • Administration Charges – A non-refundable fee a lender charges when a person applies for a loan. The administration fee ranges from ₹ 2,500-₹ 6,500.
  • Inspection Charges – The bank will levy fees when they evaluate collateral pledged.
  • Low-Interest Rate: Compared to other types of loans, such as personal loans, the Loan against Gold offers the lowest interest rate because banks maintain the gold as security.

Eligibility Criteria for IDFC First Bank 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:-

  • You can apply for this plan if your age falls between 18 and 75 years.
  • You must have paid 6-12 Equated Monthly Installments (EMIs) or 1-5 percent of the outstanding principal on your gold loan.
  • Pledged gold should be in the 18K-22K range.

Documents Required for IDFC First Bank Gold Loan Balance Transfer

In the case of a gold loan transfer, a lender will often request the following documents:-

  • Gold loan application form
  • Aadhaar card, PAN card, Passport, Driving License, Voter ID, and Job card issued by NREGA are all acceptable forms of identification.
  • Electricity bills, Gas bills, Water bills (latest), Passport, Driving License, office address- lease/ownership/rent certificate, Job card issued by NREGA are all acceptable forms of proof of address.
  • Documents proving your identity (signature proof)
  • Photographs in passport size

IDFC First Bank Gold Loan Balance Transfer Process

Follow the below-given steps to transfer the gold loan from one lender to another bank:-

  • Find out what the current exchange rate is.
  • Decide how much money you’ll save on interest.
  • Estimate the cost of processing fees and other expenses.
  • Select a new lender to whom you’d want to transfer your gold loan.
  • Examine the eligibility conditions of a new lender.
  • Close your present bank’s gold loan account.
  • Obtain all of the papers provided by the previous lender.
  • Give your old gold loan pledge card to a new lender.
  • Make an application with a new bank for a gold loan.
  • Fill out the application form and attach all of the required documentation.
  • Complete the Know Your Customer (KYC) process.
  • Make a new gold loan agreement.
  • Take a distribution from the new bank in a check or demand draft payable to the old bank and deposit it.

When should you use a IDFC First Bank Gold Loan Balance Transfer Service?

  • When you are in financial trouble.
  • Instant money for business expansion, education, or other purposes.
  • You’ve already taken out a gold loan and have been paying EMIs on that loan.
  • 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.

FAQs About IDFC First Bank Gold Loan Balance Transfer

Which bank is best for an IDFC First Bank 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 related to IDFC First Bank Gold Loan Balance Transfer?

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.