Everything You Should Know About Personal Loan Transfer To Gold Loan in 2024

Why is a gold loan better than a personal loan?

Every once in a while, everyone faces situations wherein they question their life decisions. And, when it comes to important financial decisions, the slightest of mistakes can result in severe financial setbacks. If you have already taken a personal loan with a higher interest fee and better options have emerged, no need to worry because many NBFC (Non-Banking Financial Companies) and banks now offer an alternative of a personal loan balance transfer.

What is a Personal Loan Balance Transfer?

In the personal loan balance transfer process, someone who already has a personal loan can shift their outstanding loan balance from one lender to another. However, it does not necessarily mean that the borrower has to take another personal loan to repay their initial debts. At times borrowers have idle assets like gold kept in their bank lockers. These assets (gold) can be used as securities against the loans taken. In this way, a personal loan can be transferred to a secured gold loan with a much lower interest than personal loans.

What is a Gold Loan?

India is one of the biggest gold consumers in the world, 2^nd to be precise. The World Gold Council (WGC) estimated that around 22,000 tonnes of gold stay idle among the Indian households, and their love to have more gold does not seem to diminish at all. This has led the NBFC, banks, and the government to introduce and promote gold loans in the country so that these idly lying gold can be used as financial assets.

Gold loans are secured loans in which your gold items are given as collateral in order to obtain funds for your financial emergencies and requirements. When compared to credit cards and personal loans, it is a less expensive loan.

Factors to Consider when Transferring a Personal Loan Balance

• Comparing the Options: When transferring your personal loan, it is always a good idea to research multiple lenders and loan possibilities.
• Evaluating the Costs: Certain fees will be added to a personal loan transfer, such as preclosure and processing fees. Take all of this into account when estimating cost reductions.
• The Tenure: Along with the new interest rates, the new loan will include additional terms and conditions. Check to see if the new timeframe matches your original aim when you took out the loan or if you can adjust it to the new term.
• Your Personal Requirements: If a loan transfer offers cheaper interest rates but does not suit your other needs, such as flexibility or a longer repayment period, it may not be worth it.

The Benefits of Opting for a Gold Loan Transfer

• Secured Loans: Consider the difficulties you will face while applying for a personal or a company loan at a bank or an NBFC. The credit score, often known as the CIBIL score, is the most important factor determining a person’s eligibility. The lender would scrutinize the credit history to determine whether or not the person is trustworthy. Lending companies will use credit scores as a standard. A gold loan is a secured loan in which you pledge gold as collateral. The lender does not need to check the borrower’s credit history or the CIBIL score. The aspect of a gold loan allows a person to approach businesses without any fear.
• Obtaining a Gold Loan for Any Purpose: Lenders of gold loans will not inquire about the loan’s purpose. The majority of the other loans need the individual to meet certain standards. Furthermore, those loans would be available only for particular uses. A gold loan can be used to purchase automobiles, renovate a home, fund children’s education, and finance wedding expenses, among other things.
• Easy Documentations: Individuals who want to apply for a gold loan must fill out an application, attach proof of address and identification and submit it, and that is all. The lender would check the information and inform the borrower of the amount due for the specific amount of gold. Once the client agrees, the funds will be released without any further delay.
• Options for Repayment: The ability to choose how to repay a gold loan is an important feature. The lender would determine the repayment process and EMIs for the majority of the other loans. That is not the case in this instance. Many NBFCs mainly offer four types of repayment alternatives. The customer has the option of selecting a method and processing it. This characteristic of gold loans aids people in proper budgeting for their families. In addition, many lenders also provide an online repayment system for gold loans.
• Faster Approval of Loans: A gold loan’s key characteristic is instant loan approval. In the event of a gold loan, borrowers do not have to wait for permission from the banks’ or NBFCs’ higher-ups. After validating the individual’s identification details, scrutinizing the application, and analyzing the purity of the gold, it would be authorized, and the money is handed over.

What is the Procedure for Obtaining a Gold Loan?

• The gold loan process is very similar to that of the other secured loans. The differences include the benefits of gold loans mentioned above, like quick approval and easy documentation, among others.
• In this case, you need to take your gold items to a lender along with the necessary paperwork.
• The lender assesses the gold items and confirms the paperwork presented.
• The lender approves the loan amount based on the evaluations.
• According to the loan agreement, you must pay the main amount and the interest amount to receive the pledged gold objects.

At indiagold, we provide you with the following benefits along with the lowest interest rates; higher per gram rate, quick release guarantee, instant disbursal process, and minimal documentation.

1. Request for a loan
2. Appoitment Booking and Application Process
3. Money is transferred instantly
4. Gold stored in bank vaults
5. Gold is delivered to you free of charge

So what are you waiting for? Get in touch with our expert loan managers today!