To make it easier for you, let us see the whole process by first answering a few questions for better understanding.
What is a gold loan? And who can become the holder of the gold loan?
Well, a gold loan as we must already be aware of is a way to save and secure our financial needs and wants for several fields and it is something an individual can take if he or she can obtain a sufficient amount of the gold which is consumed by them. Once they gather this gold together, they can apply for a loan against this, which is nothing but a gold loan. Now, coming to a point on who is eligible to be the holders, well, it depends on checking in few eligibility criteria that comes along with the gold loan, for example, no minor is allowed or eligible to apply for a bar of gold, and hence the age factor starts from 18years onwards to apply for a gold loan. Apart from this, every particular bank might lay down some of the eligibility that he or she has to fulfill before applying for a gold loan and this may differ from lender to lender. So all these must be checked with the banks of the lenders.
Now, what is a balance transfer in the gold loan?
A gold loan balance transfer is something that involves transferring the loan amount that was received by the bank to another account that the gold loan holders wish to transfer to.
When should people opt for the Gold loan Balance transfer method?
Well, this can be done for several reasons and few of them being, for example, let us consider an individual has taken the gold loan from HDFC Gold loan, and after this, he or she has to be in a position to repay the amount monthly according to the rate of interest that was agreed before. But in case he or she thinks that if they cannot afford such high-interest rates they can choose to transfer the loan to another account. The same can also be done in the case where the customers or the borrowers are not very comfortable with the available repayment options. One of the most common reasons why people choose to transfer their balance is when they feel like they are not really receiving the loan amount worth their gold assets and then wish to go with the gold loan balance transfer. And one most unlikely reason for this to happen is when the customers or the borrowers doesn’t have a feeling about the safety and security of their handed over gold assets and then can opt for this, but this is very rare because gold loans are especially known for the safety and security they provide to every borrower of theirs.
What is the process to opt for a gold loan balance transfer?
- Firstly, one who wishes to transfer the balance should hold their respective gold pledge card and must share this with the person he or she wishes to transfer the amount to.
- Secondly, after everything is agreed and ready for, a report of their saving is generated and evaluated altogether.
- The third step involves the confirmation of the KYC documents by the borrower of this process and it is a very quick and fast process and gets done within a few minutes.
- Now, the new borrower of the amount will have to pay certain loan interest to the previous holder on whatever has been agreed and decided between them for this transfer to take place.
- Lastly, after the payment process is completed from the borrower’s end, the transfer will then take place and the successful completion of the gold loan balance transfer happens.
These are some of the basic information about the process behind how a gold loan balance transfer takes place.
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