How can I apply for a gold loan balance transfer?

Applicants looking to transfer their existing gold loan balance from one Non-banking Financial Company (NBFC) or lending institution to another can follow these key steps:

a) Shortlist New NBFC: Determine NBFCs that offer lower gold loan interest rates to transfer the balance to optimise interest cost savings. Also, review other aspects like processing fees, tenure, loan-to-value ratio eligibility and doorstep facilities.

b) Submit Application: Visit the selected new NBFC branch or apply online. Fill out the gold loan balance transfer application form, share personal/Know Your Customer (KYC) details and provide current loan account statements reflecting outstanding amount, tenure completed, etc.

c) Gold Valuation: The NBFC will value the jewellery/gold pledged as collateral through approved valuation agents. This establishes loan eligibility based on applicable loan-to-value ratio caps.

d) Existing Loan Closure: After in-principle sanction, the NBFC pays off the outstanding loan amount to the existing loan provider and completes takeover procedures.

e) New Loan Agreement: Finally, revised loan terms and amended tenure schedule, interest rate, etc., are formally conveyed through a fresh gold loan agreement with the NBFC, where the balance is transferred.