Can gold loan be extended?

Loans Gold Loan
1

My gold loan is about to complete its tenure, but I’m not in a position to repay the full amount right now. Is it possible to extend the gold loan instead of closing it? Has anyone tried this?

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2

Most banks and NBFCs allow you to extend the loan if your interest payments are regular and the value of your gold is still good enough to cover the loan amount. In most cases, they will close your current loan and give you a fresh gold loan for a new tenure. You may have to visit the branch, fill out a few forms, update KYC, and pay any pending interest.

Some lenders also charge a small renewal or processing fee, and the interest rate might change depending on the new terms. It’s always better to contact your bank or NBFC before the due date and ask about the extension process.

So yes, extension is possible, but do check the details and act on time to avoid any penalty or auction risk.

3

I have taken a gold loan for some urgent expenses, but I may not be able to repay it fully within the original tenure. Can a gold loan be extended or renewed, and if yes, what is the process to do so?

4

Yes, a gold loan can usually be extended or renewed, but it depends on the lender’s policy. If you are unable to repay the full loan within the original tenure, most banks and NBFCs give you the option to renew the loan by paying the interest due and completing some formalities.

Here’s how it typically works:

1. Request for Renewal/Extension: Before your loan tenure ends, you can approach your lender and request for an extension.

2. Interest Payment: In most cases, lenders will ask you to clear the pending interest amount first.

3. Fresh Valuation: The gold you pledged may be revalued according to the current market price.

4. Renewal of Loan: A new loan agreement is created, and your loan tenure gets extended with revised terms.

This facility helps borrowers who need more time to repay without losing their gold assets. However, if you don’t renew or repay on time, lenders have the right to auction the pledged gold after giving due notice.

For more clarity, you can check the official gold loan details on the Muthoot Finance website here: