✓ No Limit on Loan Amounts ✓ Interest Rate Starting @0.74% p.m. ✓ Minimal Documentation Check Eligibility

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.

Benefits of a Gold Loan Balance Transfer

There are various benefits you can enjoy by opting for a gold loan transfer. Some of these include:

Lower Interest Rate

Through a gold loan transfer, you can get a lower interest rate, leading to a reduction in the EMI amount and the overall repayment cost

Higher Loan-to-value Ratio

You can enjoy a higher loan-to-value ratio in comparison to your current lender. This enables you to borrow an additional amount on your already mortgaged gold.

Better Loan Terms

Benefit from low processing fee and extended tenures with the help of the facility

Increased Gold Security

Transfers can help you get enhanced security for the gold you submit as collateral. Some of the facilities provided may include special safe lockers, CCTV surveillance, and tamper-proof packaging.

Eligibility Criteria and Documents Required

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.

Gold Loan Balance Transfer Charges

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

How to Apply?

Follow these below-mentioned steps to transfer the balance of your gold loan:

  • Reach out to the lender you wish to transfer your gold loan to

  • Fill in the application with the required details

  • Check the loan terms and conditions

  • Submit the documents as requested

  • Submit the form

  • After this, a representative will guide you through further proceedings.

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Is a gold loan transferable?

Yes, a gold loan in most cases is transferable, depending on lender policies and your loan repayment status.

Is a balance transfer of a gold loan a good idea?

A gold loan transfer is a good idea if the new lender that you choose offers a loan at a lower rate of interest. This would help reduce the EMI amount, enabling you to repay the loan sooner.

Is there a fee for transferring a gold loan?

Yes, there are a few charges you will have to pay for a gold loan balance transfer. These charges include processing fees, foreclosure charges, inspection fees, etc. The amount of these charges differs from lender to lender.

What are the benefits of a gold loan balance transfer?

The benefits of a gold loan transfer include the following:

  • Lower interest rates

  • Enhanced loan tenure flexibility

  • Potential savings on interest

  • Opportunity for better customer service

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