What are the interest rates for gold loan balance transfers?

The interest rates applicable on a gold loan balance transfer may typically range between 9% and 26% per annum, depending on the specific policies and applicant eligibility assessment of the Non-banking Financial Company (NBFC) or lending institution.

Since one of the primary objectives of a gold loan balance transfer is enabling the applicant to reduce their interest outgo, NBFCs usually offer this facility at relatively lower rates compared to average existing gold loan rates. However, the exact interest rate will be based on the customised valuation of applicant creditworthiness, income stability, gold collateral quality, etc.

A higher loan-to-value ratio is allowed on the transferred balance amount, the applicant prefers a longer repayment tenure facility, and any processing fees or charges levied for balance transfer may also impact the interest rate fixed by NBFCs for the adjusted loan amount. Additionally, rates may vary based on whether it is a regular gold loan balance transfer or includes any applicable top-up loan component sanctioned by the new lending institution.

Moreover, comparing interest rates across NBFCs as part of due diligence before balance transfer can enable availing the most competitive pricing aligned to financial needs.