Gold Loan Renewal: How to Extend Your Loan Tenure

Disclaimer: This blog is generic in nature. Please contact Ujjivan Small Finance Bank for details on Gold Loan renewal process.

July 22, 2025

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When you take a gold loan, you are required to repay the loan amount within a specified tenure. However, there may come a time when you need to extend this tenure and renew your gold loan. This is where gold loan renewal comes into play. 

 

In this article, we will guide you through the process of gold loan renewal and explain how you can effectively extend your loan tenure. 

 

Understanding Gold Loan Renewal 

Gold loan renewal is an option provided by banks that allows you to extend the tenure of your existing gold loan. When you opt for gold loan renewal, you essentially pledge the same gold articles as collateral for an extended period. This saves you from going through the entire loan application process again. 

 

Renewing your gold loan can offer several benefits: 

 

  • Easy Process: Renewing a gold loan with the same bank is a simple and hassle-free process. You don't have to go through extensive documentation or background checks again. 
  • Immediate Funds: By renewing your gold loan with the same bank, you can access funds quickly when needed. 
  • Retain Ownership: When you renew your gold loan, you retain ownership of your pledged gold articles. 
  • Flexible Repayment Options: Renewing your gold loan allows you to choose a repayment plan that aligns with your financial situation and goals. You can opt for EMIs or other payment options as per your convenience. 

 

Steps to Renew Your Gold Loan 

The process of renewing a gold loan may vary slightly from bank to bank. However, the following steps are generally involved: 

 

1. Check Your Loan Repayment Terms 

Before proceeding with the renewal process, it is important to review the terms of your existing gold loan. Understand the interest rate, tenure, and any prepayment penalties associated with it. This knowledge will help you make informed decisions during the renewal process. 

 

2. Assess Your Current Financial Situation 

Evaluate your current financial condition before extending your loan tenure. Determine how much you can afford to pay each month and whether extending the loan aligns with your long-term financial goals. This assessment will help you make a sound decision regarding the renewal. 

 

3. Contact Your Bank 

Reach out to your bank and express your intention to renew your gold loan. They will provide you with all the necessary information regarding the renewal process, including documentation requirements and any fees involved. It is important to maintain open communication with your bank throughout this process. 

 

4. Gather Required Documents 

To renew your gold loan, you will need to provide identification documents, proof of income, and details about the gold being pledged. Some banks may also require a fresh valuation of your gold articles. Make sure to gather all the necessary documents before proceeding with the renewal process. 

 

5. Evaluate New Terms 

Once you receive the new terms from your bank, carefully evaluate them in comparison to your existing loan. Look for any differences in interest rates, tenure, and additional charges. Ensure that the new terms are favourable and align with your financial situation. 

 

6. Complete the Renewal Process 

After agreeing to the new terms, complete the necessary paperwork with your bank. They will guide you through the process and ensure that you understand all aspects of the renewed loan. Make sure to ask any questions or clarifications you may have during this stage. 

 

Gold Loan Renewal Charges 

However, banks levy a certain charge on gold loan renewal request. This fee varies across banks. For example, Ujjivan levies 0.25% of Loan Amount or minimum ₹ 300/- + GST whichever is higher for loan up to ₹ 3 lakh and ₹500/- + GST for loans above ₹3 lakh as renewal fees.

Final Thoughts

Renewing your gold loan and extending your loan tenure can provide financial flexibility and quick access to funds without parting with your gold assets.

 

Get Gold Loans up to ₹25 lakh at attractive interest rates with Ujjivan Small Finance Bank. Enjoy quick disbursal and a stress-free loan journey. Apply now!

 

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

 

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk.  Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

 

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to Ujjivan Small Finance Bank Limited or its licensors. Unauthorised use or misuse of any intellectual property, or other content displayed herein is strictly prohibited and the same is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person’s nationality, residence or otherwise) be contrary to law or registration or would subject Ujjivan Small Finance Bank Limited or its affiliates to any licensing or registration requirements.

   

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FAQs

1. Can I negotiate the interest rate during renewal?

While it is possible to negotiate the interest rate during renewal, it ultimately depends on the bank's policies and market conditions. 

2. Do I have to undergo another gold valuation during renewal?

Yes, most banks require a fresh valuation of your gold articles during the renewal process to determine their current value. 

3. Can I renew my gold loan multiple times?

Yes, you can renew your gold loan multiple times as long as you meet the bank's eligibility criteria and repayment requirements. 

4. Are there any tax benefits associated with a renewed gold loan?

Gold loans do not offer any tax benefits as they are considered a form of personal credit and not an investment. 

5. What happens if I lose my renewal documents?

It is important to keep your renewal documents safe. In case of loss, immediately inform your bank and request a duplicate copy. 

6. Can I prepay my renewed gold loan?

Yes, you can prepay your renewed gold loan before the completion of the tenure. However, some banks may charge prepayment penalties or fees. 

7. How can I improve my eligibility for a renewed gold loan?

To improve your eligibility for a renewed gold loan, focus on maintaining a good credit history and timely repayment of your existing loans. 

8. Can I renew my gold loan online?

Some banks offer the option to renew your gold loan online. Check with your bank if this facility is available and the process involved. 

9. How long does the gold loan renewal process take?

The duration of the gold loan renewal process may vary depending on the bank and their internal processes. 

10. What if the value of my gold has increased since I took the original loan?

If the value of your gold has increased, you may be eligible for a higher loan amount during the renewal process. 

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