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Agri Gold Loan Scheme

The need for financial assistance is not just limited to business and salaried individuals. Individuals involved in agriculture and allied activities may also require access to funds to meet their credit requirements.

Agriculture is a crucial component to India’s GDP. Leading banks and NBFCs offer financing options tailored to the needs and requirements of the farmers. One such personalised loan option is the Agriculture Gold Loan Scheme.

It is a secured gold loan facility that allows farmers to avail funds by pledging their gold. 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

  • Allied activities- dairy,poultry, etc.

Farmers can access funds through the Kisan gold loan scheme to fund expenses such as buying inventory, purchasing land, equipment, machinery, raw materials etc.

Features of Gold Loan for Farmers

Low Interest Rates

The agriculture gold loan interest rate starts from 7% interest onwards. The interest rates are low when compared to other types of loans. Applicants with a high credit score and stable income can get a gold loan at a very competitive interest rate.

Easy Loan Process

The disbursement of loan amount is fast, and the process is hassle- free.

Minimal Documentation

The documentation and verification process for this loan is simple and quick.


Gold is kept safely in bank vaults with in-built motion sensors and 24/7 surveillance. It is returned to the customer after full repayment of the loan.

Convenient Repayment Schedule

You can choose to pay the amount either in EMIs or lump sum. The repayment time also depends on the type of loan taken.

Loan Renewal Facility

Loan renewal options are also available in some banks.

Part release facility

The farmers can release a portion of the pledged gold by repaying a sum of money equivalent to its value.


 Farmers can provide collateral such as gold coins and ornaments as collateral security. However, gold bullion is not accepted in most cases. The quality of the gold is measured before the loan is approved.

Types of loans

This gold loan is available in the form of demand loan and term loan. Applicants can choose among the two types of loans according to their needs and requirements.

Purpose of Agriculture Gold Loan

  • Buying land for agriculture purposes.

  • Buying farming equipment as well as cover operating expenses

  • Buying livestock

  • Cover warehouse/storage expenses

  • Help with the marketing expenses

  • Rural housing-related projects

  • Consumption requirements (for education, marriage, religious/family functions)

Agriculture Gold loan Eligibility Criteria

  • Applicant should fulfil the KYC guidelines

  • Applicants should be between the age of 18 and 65

  • Applicants should be engaged in agriculture or allied activities

  • Applicants engaged in activities permitted by RBI to be classified under the agriculture sector.

Documents Required for Agriculture Gold Loan

  • Application form complete with passport-sized photographs

  • KYC Documents of the applicant: PAN card, Aadhaar card, Passport, Voter’s ID card, Utility Bills (Water and Electricity) and Driving License

  • Agriculture land proof

  • Crop cultivation proof

  • Business Incorporation Certificate

How to Apply for an Agriculture Gold Loan

Visit the nearest branch of your bank to apply for Agri Gold Loan. Many banks nowadays provide the option of door-step delivery of gold loans. You can opt for any of the methods as per the bank’s policy and your convenience.

Leading Banks offering Gold Loans to Farmers of India


Agriculture Gold Loans

Loan Amount

Loan Tenure

SBI Agriculture Gold Loan

Depends on the weight of gold

12 months / 3 years (for overdraft)

Axis Bank Gold Loan for farmers

From Rs.25,001 to Rs.20 lakh

For Overdraft: From Rs.2 lakh to Rs.25 lakh

12 months

Gold Union Loan

  • Priority sector: Up to Rs.20 lakh
  • Non-Priority Sector: Up to Rs.10 lakh

6 / 12 months

Federal Bank Agri Gold Loan

From Rs.1,000 to Rs.1.5 crore

6 / 12 months

Bank of Baroda Agriculture Gold Loan

Up to Rs.25 lakh

Maximum 12 months

IDBI Agri Gold Loan

From Rs.10,000 to Rs.5 lakh

Min- 1 month

Max- 24 months

Bank of Maharashtra Agriculture Gold Loan

Up to Rs.20 lakh


South Indian Bank Agri Gold Loan

From Rs.5,000 to Rs.10 crore

6 / 12 months

Kerala Gramin Bank Agriculture Gold Loan

Up to Rs.3 lakh

12 months

Indian Bank

85% of the market value of gold jewels

6 months


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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FAQs On Agriculture Gold Loan

Agriculture Gold Loan is a secured gold loan facility that allows farmers to pledge their gold for money. The main purpose of the gold loan is to provide quick access to funds for farmers to meet their needs.


You can get a minimum loan amount of Rs.5000 with zero prepayment charges and low processing charges.

Most banks provide same day loan approval and disbursal on agriculture gold loans.

No, loans that come under the agriculture schemes can be granted and sanctioned by certain branches only.

The agriculture gold loan interest rates start from 7% onwards. This is very low compared to other types of loans.

  • Applicant should fulfil the KYC guidelines

  • Applicants should be between the age of 18 and 65

  • Applicants should be engaged in agriculture or allied activities

  • Applicants engaged in activities permitted by RBI to be classified under agriculture sector

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