A guide on how to take a gold loan transfer

Apr 02, 2020

Gold loans are one of the most popular loans in India. This is because ornaments and jewellery, often passed down from one generation to the next in India, offer instant liquidity. This is why they are widely accepted as collaterals for gold loans. Another advantage of availing a gold loan is that it can be used for any purpose, depending upon your requirements.

The ease with which you can get a gold loan is usually set by the lender. This is based on factors such as interest rate, loan to value ratio (LTV), and more. There are many cases in which a gold loan company might not offer you the best deal for your gold and so you might want to shift your gold loan. When this happens, you can look for a gold loan transfer. These companies can transfer your existing gold loan from the bank to another lender that is more suited to your needs.

Why Do People Transfer Gold Loans?

An individual may opt for a gold loan transfer for several reasons. Some of these include:

  • Not being able to bear the burden of high interest rates
  • Getting lower loan amounts that are not equal to the value of their gold
  • Inflexible repayment options that cannot be adjusted
  • Not being provided enough security for their gold

There are also many more reasons apart from the ones listed above that make you want to transfer your gold.

Advantages of gold loan transfers

Higher Per Gram Rates

Most banks only offer loans that are up to 65%, and NFBCs offer loans up to 75% of the current value of the gold being used as collateral. In such cases, getting a gold loan transferred to a provider offering a higher LTV (loan to value) ratio than their existing bank works out as a great option. This allows you to get a loan that is equal to the true value of the gold.

Better Interest Rates

Along with lower LTV ratios, a lot of banks also offer their gold loans at higher interest rates. A transfer allows you, the borrower, to choose a lender with a lower interest rate, making the loan process a lot more affordable.

Features Banks Other NFBCs Rupeek
Interest Rates Low High Medium
LTV rates Low High Highest LTV

Flexible Repayment Options

Availing a gold loan transfer can provide you with many flexible repayment options that you can use to repay your gold loans within flexible payment cycles and repayment tenures, without any changes being made to the interest rates of the loan. Having this choice available is important for you so that you can complete repayments in a time frame that is better suited to your financial needs.

Gold Security

Since gold has a high financial and emotional value, you need to make sure that your goal is insured and stored in a secure bank locker. With the right lender, a gold loan transfer can ensure this security for your gold. Rupeek offers the most secure options, having partnered with reputed banks across the country, including Karur Vysya, ICICI Bank, and Federal Bank. We are also partnered with Brinks, an international security firm that transports the gold from your doorstep to the bank with the highest grade of security.

How To Take A Gold Loan Transfer

The personal loan balance transfer process for gold loans is not only effortless and straightforward but can also save you a lot of money. To avail a personal loan transfer of a gold loan, here are the steps:

Step 1: Share Your Gold Pledge Card

To initiate a gold loan transfer, an existing pledge card must be shared with the new lender to begin the transfer process.

Step 2: Confirm the Newly Calculated Loan Amount

Once the details have been worked out, a savings report with detailed insights is sent out for their evaluation and confirmation.

Step 3: Completing the KYC Process

Once confirmation has been received, the borrower will have to complete the mandatory KYC process to complete the personal loan transfer of their gold loan. This usually takes only a few minutes and requires very few documents to be submitted.

Step 4: Payment of the Interest Amount to Initiate Transfer

The borrower will then be informed in detail about the interest amount that has to be paid to the original lender to initiate the transfer of the gold loan to the new lender.

Step 5: Completion of the Transfer

Once this interest amount has been paid, the gold loan will successfully be transferred to the new lender.

When you transfer a loan with Rupeek, we send you a consolidated and personalised report detailing how much more you will save with the loan amount. A loan transfer with us also entails maximum security measures for your gold, and flexible repayment, such as the option to pay interest once in every 6 months. With Rupeek, you can initiate a gold loan transfer with ease through our website or app, or by calling our support helpline 08068186818, all from the comfort of your home.