What is Gold Loan Renewal Policy?

Gold loans are one of the most commonly used ways of taking a loan from a bank or other money Landing organisations. As the whole world is suffering from the Pandemic and losing their jobs, gold loan is one of the major support systems for people to survive these days. Taking a gold loan is easy in India there are various organisations and banks which provide this facility for every amount of gold. You can get your gold items once you repay the loan amount to the organisation. Most of the time, people think of renewing their loans so that they can invest or use money at some other places. To renew a gold loan is one of the easiest processes and also beneficial at the same time. 

Here in this article, we will learn how to renew a gold loan and the benefits of renewing a Gold loan renewal and how you can get the gold loan rate per gram as per current market gold rates.

How to apply for a gold loan renewal?

Every organisation provide their customers with a medium of renewing their gold loan after the first one is offline and another is online. It depends upon the customer which medium they prefer. If you want to go for the offline medium, you can physically visit the bank or money lending organisation and meet the agent. The agent will ask you to do some paperwork; also he/she will guide you properly to complete the paperwork. If you want to go for the online process, you can use the mobile application or website of the organisation. Then apply for the gold loan renewal. An executive from the bank will call you and guide you with the process, and the loan will be sanctioned as per their policy.

Things to keep in mind while renewing a gold loan

 It is very important to be careful while renewing your gold loan. Here are the following things you should keep in mind so that you can never miss any point:

  1. There should be a fee for renewing the gold loan, including stamp duty, processing fees, and other taxes. Make sure you read all the documents carefully to know the different charges applicable.
  2.  The value of the name changes depending upon the current market conditions. If you want to repledge your assets, you need to check the current gold loan rate per gram of gold.
  3. You can ask the agent or executive for a better long term which depends upon the loan repayment history.
  4.  Most lenders offer an option to the customers to renew their gold loan that sanctions up to the lender’s discretion. This means a lender can reject your loan renewal application as per their policies.

To enhance the chances of your Gold loan renewal and to best gold loan rates following are a few tricks you can use:

  • Pay your loan dues on time and finish all your dues before submitting loan renewal application.
  •  To maintain your credibility, do not miss any EMI payment.
  •  Apply for the amount you require to ensure that the credit utilisation ratio stays low
  •  Pledge new assets if your existing assets are not sufficient to meet your loan requirements.

Benefits of applying for gold loan renewal

There are numerous benefits to renewing your gold loan compared to two to applying for a new loan. Following are the benefits:


The advantage of renewing a loan is that you are already familiar with the rules and regulations. On the other hand, the lender is also familiar with you and knows your loan repayment history. So, he will not hesitate to renew your loan. This loan will be sanctioned faster than other customers who are applying for the first time or who are taking a different loan.

The benefit of an existing relationship with the lender

As the lender already knows you and is aware of your assets, he will immediately process your loan. He will not hesitate to pledge your new gold jewellery and repledge with the existing jewellery to save effort and time.

Instant sanction

In case you prefer to repledge your assets, and want the lender to process your applications on the same day, it is possible. Many organisations ask their customers to complete the gold renewal process online within a few minutes and sanction the amount immediately. This is because the document verification, borrower verification, and asset verification are already available in the database, and the system can automatically match and sanction the loan.


Gold loan renewal is one of the best options for the best gold loan rates. But make sure that you read all the terms and conditions of the specific money lending organisation before filling out your application. 

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