Calculate your gold loan balance transfer saving
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance at year end |
|---|
Reducing-balance method. Results are estimates for planning; the lender's Key Fact Statement is final.
A gold loan transfer moves your pledged gold to a lender charging less. On a short loan the saving is small, so fees can wipe it out.
Gold Loan Balance Transfer at a glance
The figures the calculator starts with come from these typical ranges. Change them to match the offer in front of you.
| Feature | What to expect |
|---|---|
| Typical loan amount | The outstanding balance of your current gold loan, plus a top-up if your gold supports it |
| Tenure | Roughly 3 months to 3 years, with bullet repayment capped at 12 months |
| Indicative interest rate | Roughly 9% to 22% a year, and a transfer is worthwhile only if it is lower than your current rate |
| Processing fee | Roughly 0% to 2% of the loan amount, plus applicable taxes |
| Security / collateral | The same gold, released by the old lender and pledged with the new lender |
| Typical time to disbursal | Often 1 to 3 working days, depending on coordination between lenders |
From our Gold Loan Balance Transfer guide. Ranges are indicative; your offer may differ.
How big a rate cut makes the switch worth it
On ₹2 lakh at 16% with 1 year left and ₹1,500 of switching costs:
| Rate cut | Monthly saving | Interest saved | Net saving | Time to recover costs |
|---|---|---|---|---|
| 0.25% (to 15.75%) | ₹24 | ₹284 | Costs ₹1,216 more | 5 years 4 months |
| 0.5% (to 15.5%) | ₹47 | ₹567 | Costs ₹933 more | 2 years 8 months |
| 0.75% (to 15.25%) | ₹71 | ₹851 | Costs ₹649 more | 22 months |
| 1% (to 15%) | ₹95 | ₹1,134 | Costs ₹366 more | 16 months |
| 1.5% (to 14.5%) | ₹142 | ₹1,700 | ₹200 | 11 months |
Costs of switching
A gold loan transfer can involve a processing fee at the new lender, any closure or pre-payment charge at the old one, and a fresh valuation of your gold. The calculator treats all of these as one switching cost. Make sure the new lender pays off the old loan directly and that the gold is released and re-pledged on the same day.
How the saving is calculated
The calculator works out the EMI on your outstanding balance for the remaining tenure at the current rate and at the new rate, using the reducing-balance formula. The difference multiplied by the months left is the interest saved. Dividing the switching cost by the monthly saving gives the break-even point. If you plan to close the loan early, only count the saving up to that date.
Before you apply for a gold loan balance transfer
The calculator tells you what the loan costs. Before you apply, check whether you qualify, what documents lenders ask for and the mistakes borrowers most often make.
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Gold Loan Balance Transfer EMI: frequently asked questions
When is a gold loan balance transfer worth it?
When the net saving after all costs is clearly positive and you recover the costs well before you expect to close the loan. Here a 6% cut saves ₹5,256 net.
What rate difference makes a transfer worthwhile?
On short gold loans the saving is small, so a large gap is needed. Compare the interest saved for the months left with the fees.
Should I ask my current lender first?
Yes. Many lenders will reprice an existing loan for a fee if you ask. Compare that fee and the new rate with the cost of moving.
Does the EMI change after a transfer?
If you keep the same tenure, the EMI falls. You can also keep the EMI and shorten the tenure, which saves more interest.
Can I take a top-up with a balance transfer?
Many lenders offer one. It is a new loan, so include its EMI and interest when judging the saving.
Does a transfer affect my credit score?
There is a new enquiry and a new account, which may cause a small, temporary dip. Paying the new EMIs on time rebuilds it.
Rates, fees and limits are indicative ranges for India, reviewed on the date above. KhatuLoans is not a lender and does not decide approval or pricing. Read our editorial policy and how we make money.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.