Gold Loan Transfer

Gold loan balance transfer refers to a shift of the outstanding gold loan balance from your existing lender to another. You can use this facility to benefit from low gold loan interest rates and other favourable terms.

The eligibility criteria for a gold loan balance transfer varies from one bank to another. However, the common parameters include:

• You must fall under the age bracket of 18 to 75 years

• You must have completed the payment of at least 6-12 EMIs

• The purity of the gold submitted should be over 18 karats

Furthermore, to transfer the balance of a gold loan, you will be required to submit some crucial documents. Typically, you will have to provide the basic identification documents for KYC purposes. These include:

1. Identity Proof: Any one of the following

• Aadhaar card

• Voter ID

• Passport

• Driving licence

• Other government-issued documents

2. Address Proof: Any one of the following

• Latest utility bills

• Rent agreements

• Other government-approved documents

Ensure to check for any other additional documentation requirements your lender may have.

There are various charges involved in the transfer process of a gold loan balance. Some of these charges are:

• Foreclosure Charges - Also known as pre-closure charges, to be paid to the current lender for closing your loan account early. This charge generally ranges between 0 to 1%.

• Processing Fees - Banks and institutions typically charge around 1% of the loan amount as processing fee

• Valuation Charges - This cost is levied at the time of value evaluation of the gold pledged as collateral, usually ranging from ₹500 to ₹1,500