"Can you transfer a gold loan to another lender? This blog explores the possibility, process, eligibility, and benefits of shifting your gold loan hassle-free."
Published: 21 August 2025
Updated: 21 August 2025
Gold has long been a trusted asset in Indian households. More than just a metal, it has become a reliable source of funding during emergencies. With the rising popularity of gold loans, many borrowers wonder whether they can move an existing gold loan from one bank to another. The answer is yes. A gold loan transfer is very much possible and could actually be a smart financial move.
Let’s explore how a gold loan transfer from one bank to another works. What are its benefits, process, and what to keep in mind before making the transfer?
A gold loan transfer (also called gold loan balance transfer or gold loan takeover) means when a borrower shifts their existing gold loan from one bank to another. This is usually done when the borrowers find better terms. It can include lower interest rates, improved customer service, etc. This process is often referred to as a gold loan takeover.
Today, several gold loan takeover banks in India provide this facility.
Here are some of the most common reasons why people consider a gold loan transfer:
Interest rates on gold loans can vary significantly from one bank to another. If you find a bank that offers a lower rate, a gold loan balance transfer can help you save quite a bit over time.
Some of you can be dissatisfied with the current loan provider's service or flexibility. Others might prefer a provider who offers a longer repayment period, easy EMIs or the convenience of managing everything online.
Some gold loan takeover banks reassess the value of your pledged gold and may offer a higher loan-to-value (LTV) ratio, giving you access to additional funds.
In many cases, a balance transfer may also come with a Top Up Loan option. This allows you to borrow an additional amount over and above your existing outstanding when you shift to a new lender.
The process to transfer gold loan is fairly simple but requires careful handling, especially since it involves physical gold. Here’s a step-by-step breakdown:
Begin by checking what other gold loan takeover banks are offering. You can compare interest rates, processing fees, LTV ratio, and customer service of various gold loan takeover banks. Ensure the new bank has favourable terms that justify the move.
Submit a gold loan balance transfer request to the new lender. You’ll be asked to fill in an application and submit your KYC and existing loan details.
If approved, your new lender will directly pay off the outstanding amount to your current lender.
Your pledged gold is released from the current lender and transferred to the new lender’s custody. This involves physically moving the gold, often in the presence of both lenders or under secure conditions.
After the gold is safely received, you’ll enter a new loan agreement with revised terms under the new lender.
Some gold loan takeover banks may request additional documentation, so it's best to confirm beforehand.
Also Read: How to Calculate Gold Loan Interest Online?
When you transfer gold loan, you could benefit from the following:
While transfer gold loan sounds appealing, be sure to evaluate these aspects too:
A thorough check of cost-benefit analysis can help you determine whether a gold loan balance transfer is worth it for your situation or not.
💡 Tip: Use a gold loan transfer calculator (many lenders offer this) to estimate savings before switching.
Here are some well-known banks and NBFCs that facilitate gold loan transfer:
Each of these banks offers different rates and features. So it is always recommended to compare them or use a trusted platform like My Mudra to simplify the process.
When considering a gold loan balance transfer, choosing the right lender makes all the difference. The ideal lender can help you:
By comparing lenders carefully, you can maximize the benefits of your balance transfer and get more value out of your pledged gold.
A gold loan balance transfer isn’t just about moving your loan—it’s about making your gold work smarter for you. With the right lender, you can cut down on interest, ease your repayment burden, and even get additional funds through a top-up loan.
💡 And if you are exploring other types of loans such as home, personal, or business, My Mudra can help you find the most suitable options with trusted lenders.
Ans: Yes. You can transfer your existing gold loan to another bank or NBFC offering better interest rates or terms. This process is called a gold loan balance transfer.
Ans: If your new lender allows a higher loan-to-value (LTV) ratio, you may be eligible for a top-up loan along with your gold loan balance transfer.
Ans: The process usually takes 3 to 7 working days, depending on how quickly your documents are verified and how smoothly both lenders coordinate.
Ans: Not always. In most cases, your new lender will handle the process with your existing bank. Some also offer doorstep services for added convenience.
Ans: Most lenders may charge a processing fee or transfer charges, usually ranging from 0.5% to 2% of the loan amount. It’s best to compare costs before transferring.
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