✓ No Limit on Loan Amounts ✓ Interest Rate Starting @0.74% p.m. ✓ Minimal Documentation Check Eligibility

Leading banks and NBFCs offer various financing options tailored to the needs and requirements of farmers. One such personalised credit option is the gold loan for agricultural purposes. The main purpose of the gold loan is to provide quick access to funds for farmers to meet their needs.

Gold loan allows farmers to get funds to cater to financial requirements such as crop production and other allied activities like dairy, poultry, etc. Farmers can access funds through these loans and fund expenses associated with buying inventory, purchasing land, equipment, machinery, raw materials etc.

Leading Banks Offering Gold Loans to Farmers of India

Listed below are some of the leading gold loan options for agricultural purposes available in India that you may want to consider:


Max. Loan Amount

Max. Loan Tenure

SBI Multi Purpose Gold Loan (Agriculture Banking)

Depends on the advanced value of the gold and its purity

12 months

Axis Bank Agricultural Gold Loan

₹25 Lakhs

12 months

Union Gold Loan - Agriculture

₹1 Crore

12 months

Federal Bank Agri Gold Loan

₹1.5 Crores


Bank of Baroda Agri Gold Loan

₹50 Lakhs

12 months

IDBI Gold Loan Scheme (Agriculture Finance - Short Term Loans)

₹50 Lakhs

36 months

Mahabank Gold Loan Scheme - Agriculture

₹1 Crore

60 months

Indian Bank Agricultural Jewel Loan Scheme

85% of the market value of the gold jewels

12 months

*Disclaimer: The aforementioned details are subject to change at the lender’s discretion.

Features of Gold Loan for Farmers

Low Interest Rates

The interest rate for these loans typically starts from 7% p.a.

Easy Loan Process

Benefit from a hassle-free application process and quick disbursement of funds

Minimal Documentation

Enjoy simple documentation and verification through the easy online application process


Gold is kept safely in bank vaults with in-built motion sensors and 24/7 surveillance

Convenient Repayment Schedule

You can choose to pay the amount either in EMIs or lumpsum, as per your repayment capabilities

Loan Renewal Facility

Some banks also offer loan renewal facilities to borrowers

Part-release facility

You can release a portion of the pledged gold by repaying a sum equivalent to its value


Farmers can provide collateral such as gold coins and ornaments

Purpose of Gold Loan for Farmers

Here are some situations where this gold loan can be useful:

  • Buying land for agricultural purposes

  • Buying farming equipment and covering operational expenses

  • Buying livestock

  • Covering warehouse/storage expenses

  • Fulfil marketing expenses

  • For rural housing-related projects

  • For requirements like education, marriage, and religious/family functions

Eligibility Criteria and Documents

Some of the common eligibility criteria for this gold loan are as follows:

  • You should fulfil the KYC guidelines

  • You should fall under the age bracket of 18 to 65 years

  • You should be engaged in agriculture or allied activities

  • You must be engaged in activities classified under the agriculture sector by the RBI


Here are some documents lenders usually require you to submit when applying for a gold loan for agricultural purposes:

  • Application form complete with passport-sized photographs

  • KYC Documents: 

    1. PAN card

    2. Aadhaar card

    3. Passport

    4. Voter ID 

    5. Utility Bills (water, electricity, etc.)

    6. Driving Licence

  • Agriculture land proof

  • Crop cultivation proof

  • Business Incorporation Certificate

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How to Apply?

Visit the nearest branch of your bank to apply for a gold loan for agricultural purposes. Many banks also provide doorstep services to customers applying for these loans. You can opt for any of the methods as per the bank’s policy and your convenience. Furthermore, you can apply for the loan online by following these simple steps:

  • Visit the official website of the chosen lender

  • Navigate to the application section

  • Fill in the online form with your basic details

  • Provide the documents requested by the financial institution

  • Cross-check the details entered and submit the application form

  • Following this, a representative will reach out to you for further proceedings.

How to Apply for home loan


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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What is a gold loan for farmers?

A gold loan for farmers enables individuals to get the required funds by submitting their gold assets as collateral. The main purpose of this loan is to help farmers borrow high amounts easily and meet their urgent needs.

What is the minimum amount I can borrow through a gold loan for agricultural purposes?

You can get a minimum loan amount of ₹5,000 with zero prepayment charges and low processing charges through a gold loan for agricultural purposes.

How fast will my loan application be processed?

Most banks provide same-day loan approval and disbursal on gold loans for agricultural purposes.

What is the interest rate for gold loans for agricultural purposes?

The interest rates of gold loans for agricultural purposes usually start from 7% p.a.

What is the age limit for a gold loan for agricultural purposes?

Individuals who fall under the age bracket of 18 to 70 years are usually eligible to get a gold loan for agricultural purposes.

Why do farmers take gold loans?

Farmers can fulfil expenses related to crop production and other allied agricultural activities with the help of a gold loan.

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