Know about the features, benefits, eligibility, & documents required for a gold loan for agricultural purposes
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.
Listed below are some of the leading gold loan options for agricultural purposes available in India that you may want to consider:
Product |
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 |
N/A |
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.
The interest rate for these loans typically starts from 7% p.a.
Benefit from a hassle-free application process and quick disbursement of funds
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
You can choose to pay the amount either in EMIs or lumpsum, as per your repayment capabilities
Some banks also offer loan renewal facilities to borrowers
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
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
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.
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.
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.
Most banks provide same-day loan approval and disbursal on gold loans for agricultural purposes.
The interest rates of gold loans for agricultural purposes usually start from 7% p.a.
Individuals who fall under the age bracket of 18 to 70 years are usually eligible to get a gold loan for agricultural purposes.
Farmers can fulfil expenses related to crop production and other allied agricultural activities with the help of a gold loan.