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.
The disbursement of loan amount is fast, and the process is hassle- free.
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.
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 options are also available in some banks.
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.
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)
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.
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
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.
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 |
|
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 |
Flexible |
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 |
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