How To Renew Gold Loan In IIFL Finance
IIFL Finance is a leading gold loan finance company in India and offers loans at a competitive interest rate. Learn how to renew a gold loan at IIFL Finance.
Gold loans are secured credit facilities extended by banks and NBFCs against gold jewellery. These loans can come handy and can be used to cover medical expenses, plan home renovation, expand business, etc. Most banks and financial institutions offer loans against gold jewellery, but some also offer loans against coins, bars and biscuits.
Gold loans are relatively short-term loans with a maximum tenure of repayment extending between six and 60 months. The principal and interest on a gold loan can be paid back to the lender in multiple ways. Borrowers can repay the interest as per the EMI schedule or pay off the principal amount at the time of maturity of the loan. Alternatively, they can opt for bullet repayment planning to repay both the interest and the principal amount right at the end of the loan’s tenor.
At the end of the loan tenor, once the outstanding loan amount and the interest on it is cleared, the loan account stands closed and the pledged gold articles are returned. In case a borrower fails to repay the borrowed sum, they can apply for loan extension, requesting the loan providers to increase the tenor of the gold loan.
However, after the loan has been repaid, the same gold articles can be used as security to renew a gold loan, if needed. Renewing a gold loan is different from a gold loan extension. If one has an existing gold loan with IIFL Finance and wishes to renew it at the end of the loan tenor, here is a complete guide to do so.
• The first step to renewing a gold loan at IIFL Finance is to download the latest version of its mobile app or go to its website. Once it is done, the next step is to log into the bank's website or app.
• Next, the applicant should select and click on the ‘Gold Loan’ option. The customer is then required to provide their mobile number and date of birth to verify the OTP on the lender’s website.
• After the OTP verification stage is complete, the applicant must initiate the KYC process. For this, they must enter the details (name, email address) as asked. Supportive identity proofs must also be uploaded to complete the KYC process.
• The pre-confirmation screen will have terms and conditions and also the details of the gold loan account. If everything is accurate, the next step is to hit the ‘Submit’ button.
• Once the complete application form is submitted after filling in the customer details, a service request will be raised. It is then up to the lender who will then verify and approve the loan.
• After the verification is completed by the lender and the gold loan renewable application is approved, the approved loan amount will be disbursed into the borrower’s bank account.
Generally, there is no lock-in period for gold loans. Also, on IIFL Finance gold loan renew schemes, customers with excellent gold loan repayment history may get better loan terms. A good relationship with the lender also helps to negotiate for better interest rates and repayment terms. But the lender may charge processing fees, stamp duty, and other taxes to renew a gold loan scheme.
IIFL Finance is a leading gold loan finance company in India. IIFL Finance gold loans can be taken for a variety of purposes like education, business, personal, etc. For additional funds, IIFL Finance allows all its existing customers to renew a gold loan with the previously pledged gold ornaments.
But before a renewal, the lender validates the borrower's repayment capacity. It must be remembered that the sanction is up to the discretion of the lender, meaning that a lender may also reject a renewal application. So, it is important to establish credibility and keep the credit utilization ratio low. In case the existing assets are insufficient to match the new gold loan requirements, it is good to pledge new assets.
So, fill your gold loan application today and apply for a loan at the nearest IIFL branch to fulfil all your financial needs. For information on gold loans log into the company’s website and know more about the process, policy, and service charges at IIFL Finance.