How To Transfer A Gold Loan From Your Current Bank To Another Bank?

Everyone requires financial assistance at some point or the other in their lives, and it is always ideal to research for financing options. However, there are other borrowing options available, and you may be having trouble deciding which one to use. As a result, gold loans are among the most popular loans in India. This is because ornaments and jewellery, which are frequently passed down from generation to generation in India, provide rapid liquidity. As a result, they are commonly accepted as collateral for gold loans per gram.

Table of Content

• How Exactly Does A Gold Loan Work?
• What is a Gold Loan Transfer?
• Eligibility for Transferring Gold Loan
• Step-by-Step Process to Transfer Gold Loan
• Documents Required for Gold Loan
• Benefits of Gold Loan Transfer
• Conclusion

How Exactly Does A Gold Loan Work?

A gold loan, also known as a loan against gold, is a secured loan offered by Muthoot Finance at attractive interest rates in return for gold embellishments such as gold jewellery. It is the most convenient approach to fulfilling your financial needs and a feasible alternative to regular banking channels for getting loans.

What is a Gold Loan Transfer?

A gold loan transfer from one bank to another is essentially a gold loan balance transfer. Customers generally do this when they get better loan terms and more attractive interest rates. This service, however, is not available from every lender.

The ease of securing a gold loan is governed by a variety of factors, including the interest rate, loan-to-value ratio (LTV), and others. In many cases, a gold loan provider may not provide you with the greatest deal for your gold, pushing you to refinance your gold loan. If this occurs, you may want to consider a gold loan transfer. Muthoot Finance can assist you with gold loan transfers from your current bank in the most seamless way.

Eligibility for Transferring Gold Loan

The eligibility criteria for moving gold loans from one bank to another vary depending on the financial institution, but the following are the most common: -

• You can apply for this plan if you are between the ages of 18 and 75.
• You must have made 6–12 Equated Monthly Installments (EMIs), or 1–5% of your gold loan's outstanding principal.
• The gold pledged should be in the 18K–22K range.

Step-by-Step Process to Transfer Gold Loan

• Research: Search for loan providers offering a better gold loan interest rate or more convenient borrowing terms.
• Assess: Evaluate how much the gold loan takeover will cost you, including the processing fee and other charges that you may be required to pay.
• Eligibility: Check if you meet the loan provider’s eligibility requirements.
• Close Your Existing Loan: Initiate the gold loan transfer by applying for foreclosure or closure of your gold loan account with the current loan provider.
• Documentation: Submit the required documents to the new loan provider. The documents should include identification, address proof, and the details of your existing loan, including the loan statement and repayment history.
• Evaluation: The new loan provider will re-evaluate and re-appraise the pledged gold.
• Loan Agreement: After verification and re-evaluation, you can sign a new loan agreement with the new provider.
• Funds Transfer: Once the gold loan balance transfer is completed, the lender will either repay your old loan provider directly or transfer the required funds to your account, which you can use to repay the old loan.

Documents Required for Gold Loan

In order to acquire the loan against gold, the following documents for a gold loan are required: -

• Only the most basic KYC documents, such as address and ID, are required.
• Banks do not require income proof or CIBIL score verification to approve a gold loan.
• Identity Verification
• Aadhaar card, voter ID card, passport, driver's license, or other government-issued photo ID will be accepted.
• Aadhaar card, passport, utility bill (within 3 months) or other government-approved address proof.

Benefits of Gold Loan Transfer

• Security of Gold >As gold has significant financial and emotional worth, you must ensure that your objective is insured and held in a secure bank locker. A gold loan transfer with the correct lender will provide this protection for your gold. Muthoot Finance, for instance, provides a safe medium of storage with specialized safe rooms, round-the-clock CCTV surveillance, and tamper-proof packaging to ensure complete security of the gold you have pledged.
• Better Interest Rate Interest rates on gold loans vary from one bank to the other. When you choose a balance transfer on your gold loan, you do it because the new lender has better interest rates. The weight of your EMI is lessened as a result, and you will be able to pay off your loan sooner.
• Higher per Gram Rate If a new lender provides a loan with a better LTV ratio than your previous lender, you can obtain a larger loan.

Conclusion

The procedure for gold loan transfer from one bank to another entails first clearing your existing gold loan with your present bank and then pledging your gold with one of the partner banks. At Muthoot Finance, our gold loan experts will guide you at every step of the way, including the reappraisal and revaluation of your gold. This not only saves time and minimises problems, but it also makes the procedure of transferring a gold loan to Muthoot Finance simple and effortless. Visit your nearest Muthoot Finance Branch to know more.