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How to refinance your loan and get better rates for your gold loan

How to refinance your loan and get better rates for your gold loan

How to refinance your loan and get better rates for your gold loan


The world has been facing a tough time ever since the breakout of the pandemic, generating massive financial insecurity to a large mass of people. Individuals have been struggling with their businesses, loan dues, and medical payments too. In these adverse times, the usage and refinance of gold loans have been a boon to people who are ready to sacrifice their gold property for money to fulfil their needs for a sustainable life. As the growth of the country is struggling, the growth of credit is losing its momentum parallelly. Shriram Finance, India’s leading Non-Banking Financial Company, is here to guide you through refinancing loans to avail of maximum benefits in these tough times. Scroll down to see how.

What is Refinance:

Suppose you have borrowed a loan, and this existing loan now stands too expensive or risky. It may happen that your financial circumstances have changed since you borrowed the money, and more profitable loan offers might be available to you now. You can replace this existing loan with a new loan that clears the debt of the first one. This process of revising the terms of an existing loan or mortgage is termed Refinancing.

When an individual wants to mortgage refinancing for an existing credit obligation, he/she can do so by introducing favourable amendments on their rate of interest, mortgage refinancing rate, payment schedule, or other terms of credit. If approved, the individual obtains a new contract that renews the existing credit loan.

How to Refinance the loan:

Refinance of Loan involves the following key points to be followed:

1. Check out the over cost and benefit of the refinance terms, and not exclusively the interest rates.

2. Be calculative concerning the processing and ancillary charges for the new loan and the foreclosure charges for the existing loan. These are upfront costs and can nullify the whole benefit from being shifted to your credit.

3. High-interest rate is less of a problem for short term loans. The non-interest charges incurred in the existing and the new loans are primary, and should get considered before analysis.

4. Note the tenures of new and current loans. Your cash flow may not provide sustainable permission to renewal. Irrespective of how we analyse, all loans have to be repaid. Hence, it is imperative to be aware of your cash flows and your repayment ability.

How to get a gold loan (Gold Loan Procedure):

Indians consider gold to be culturally significant, and hence, valuable. Consumers holding gold in reserve make use of gold loans to meet their credit requirements. Shriram Finance gold loan provides profitable refinancing terms to consumers in a few simple steps:

  • Visit our Branch:Customers must visit the Shriram Finance branch with their jewellery or gold property in the form of gold coins that they decide to pledge. Our bank will measure the worth of your property, and propose a price for the gold loan. Interest rates generally range from 7.50% to up to 12%.
  • DoorStep Evaluation on Request:We provide doorstep gold loan evaluation on customer requests. When customers opt for our doorstep service, our financial representative will send a company executive to visit your home to evaluate the property you wish to pledge and agree upon a sustainable credit amount, which is then transferred to the customer’s account.
  • Apply for a Digital Gold Loan: Customers may apply for a gold loan via our website, where we guide them in choosing loan offers utilising our secure and preferred digital service. They may compare interest rates and conclude the best available option for them.
  • When the customer is sure of pledging their decided gold property against the gold loan disbursal decided by the financial representative, they are given a receipt known as a pawn ticket. This pawn ticket will comprise the complete details about the pledged ornaments, such as their weight and carat details.
  • The secure storage of the pledged gold property is completely handed over to the financial entity after the previous steps, until the gold is not taken back by the customer upon repayment of the loan.
  • In case the customer fails to repay the loan, the lender shall keep the gold with themselves and use it at auction to retrieve the investment. To avoid such a situation, customers are requested to repay in time. In extreme conditions of financial instability, the loan repayment clause shall be renegotiated.
  • The lender must evaluate the gold in terms of purity and weight, and verify jewellery ownership and identity documents submitted before offering a loan amount known as the LTV (loan to value).
  • A credit limit is sanctioned up to 75% of the market value of the pledged property by the Reserve Bank of India. The customer can withdraw this amount anytime. Once the loan is repaid, the customer may or may not repledge the same gold for future loans.
  • It is not necessary to repay the loan via a monthly instalment. Shriram Finance offers customers the liberty of making bullet repayments referring to a lump sum payment amount at maturity.
  • The customer repays the outstanding amount and the account stands closed on maturity. He may also extend the tenure by repledging the jewellery at the existing LTV.
  • A customer can roll over their gold any number of times by completing the gold loan renewal process. 

Documents Required for getting a gold loan:

The official documents of the customer that are needed for the verification process of the gold loan are listed below:

  • Mandatory - You must carry an Aadhaar card.
  • Identity proof - PAN Card/ Voter’s ID Card/ Passport/ Aadhar Card can be considered as identity proof.
  • Address proof - Voter’s ID Card/ Passport/ Driving License/ Utility Bills/ Aadhaar Card/ KYC Documents.
  • Photo Identity: - 2-3 Copy Passport Photo (Recent)

How Shriram Finance Can Help you:

Trusted by customers over the years, Shriram Finance guarantees you a secure and hassle-free refinancing experience to meet your needs.

  • We ensure you the lowest monthly mortgage payments and interest rates.
  • We give our customers the liberty to choose from an adjustable interest rate to a fixed interest rate.
  • We provide you the best offers to acquire an influx of cash for a pressing financial circumstance.


Now that you know the benefits of refinancing, take your first step with Shriram Finance and renew your old and existing loans that have lesser value! The Reserve Bank of India has been cutting repo rates for over a year now. However, Shriram Finance has been successful in granting the new borrowers solely attractive deals to pledge their idle gold.

Solve your financial emergencies by getting a hassle-free gold loan in minutes with Shriram Finance.

Get a gold loan at low interest rates