Can I switch my gold loan from one lender to another before the tenure ends?

Yes, an ongoing gold loan can generally be shifted from one lender to another through a balance transfer, provided the process is followed correctly and your current lender has such a provision. This process is often referred to as a takeover. In practice, the new lender first settles the outstanding dues with your existing lender. Only after the loan is closed does the pledged jewellery get released and transferred.

Once released, the gold is valued again by the new lender to confirm purity and net weight before it is re-pledged. Based on this valuation, a fresh loan account is opened and a new repayment schedule begins. The structure may differ from your earlier loan, depending on the lender’s product.

Before switching, it is important to look beyond the headline interest rate. Processing fees, handling charges, or stamp duty may apply, and revaluation can sometimes affect the loan amount offered. Also, not all lenders accept takeovers. A switch makes sense only if the overall savings clearly outweigh these costs.