Majority of Indian banks and NBFCs offer gold loans for farmers to help them with various agricultural and allied activities. These activities include buying land, purchasing equipment or machinery for irrigation purposes, buying raw materials or goods, crop cultivation, enhancing inventory or stock and much more.
The agriculture gold loans offered by financial institution starts at an interest rate of 7.00% and onwards per annum. Agriculture gold loan interest rates, eligibility, repayment tenure, fee & charges shall vary from bank to bank. However, below mentioned are some more important details on gold loan for agriculture:
Agriculture Gold Loan – Features & Interest Rate – 2021 |
|
| Loan Amount | Any amount from Rs.1,000 to Rs.10 crore* |
| Interest Rate | 7.00% onwards (p.a.) |
| Repayment Options | Lumpsum, EMI, as per lender |
| Gold Items accepted | Gold ornaments verified for quality and quantity |
| Tenure | Starting from 1 month to 36 months |
| Processing Fee | Nil-1% of the loan amount |
Note: The above mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
Compare Agriculture Gold Loan from Leading Banks – 2021
Usually, some banks and NBFCs offer concessional interest rates on their regular gold loan schemes for agricultural needs. Whereas, other financial institutions have a separate scheme for agriculture gold loan. Mentioned below are the interest rates and processing fee of banks offering agriculture gold loans in India.
| Agriculture Gold Loans | Interest Rate* | Processing Fee |
| Bank of Maharashtra Agriculture Gold Loan | 7.00% | Nil |
| Indian Bank | 7.00% | Nil |
| Union Bank Gold Loan | 7.20% | Nil |
| Bank of Baroda Agriculture Gold Loan | 7.70% | Up to Rs.3 lakh- Nil Above Rs.3 lakh- 0.25% + GST |
| SBI Multi Purpose Gold Loan | 8.25% | Nil |
| Federal Bank Agri Gold Loan | 8.50% | Rs.250 to Rs.1500 |
| South Indian Bank Agri Gold Loan | 8.85% | Nil |
| Kerala Gramin Bank Agriculture Gold Loan | 11.99% | Nil |
| Axis Bank Gold Loan For Farmers | 13.00% | 0.50% + GST |
Note: The above mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
Eligibility Criteria
- Applicant should fulfil the KYC guidelines as requested by the lender
- Age Criteria: Minimum 18 years and maximum 65 years
- Applicant engaged in agriculture or allied activities
- Applicants engaged in activities permitted by GOI/RBI to be classified under agriculture sector
Documents Required
- Duly filled in application form with passport-sized photographs
- KYC Documents of the applicant: Passport, Voter’s ID card, PAN card, Aadhaar card, Driving License, Utility Bills (Water and Electricity)
- Proof of agriculture land in the name of the applicant
- Proof for cultivating the crop
- Business Incorporation Certificate
- Any other document required by the lender
Note: The eligibility criteria and the documents required at the time of application may vary from one bank to another. The above mentioned is the common criteria for agriculture gold loan. Kindly check with the bank before applying for the same.
Steps to Calculate Gold Loan EMI
Use our Gold Loan EMI Calculator to check the amount of EMI you will be required to pay on your gold loan. To calculate your EMI, follow the below listed steps:
Step 1: Click here to go to our Gold Loan EMI Calculator page.
Step 2: Enter the preferred loan amount, interest rate and loan tenure
After successfully submitting the above-mentioned details, you will be able to see the EMI amount on the right side of the screen.
Gold Loan offered by leading banks to farmers of India
Gold loan against agriculture is available across all the Rural and Semi-urban branches. Below is the list of some banks providing gold loan to farmers along with their loan amount and repayment tenure:
| 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 |
| Union Gold 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 | 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 |
Note: The above mentioned fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
| What is Gold Loan Overdraft?
In the gold loan overdraft facility, the banks deposit up to 75% value of the gold to your savings account. You can use according to your requirement and pay interest for only the amount used. Whereas in a regular gold loan, you have a fixed rate of interest and loan tenure and you will have to pay interest for the entire loan amount. |
Read More About: Agriculture Gold Loan from Top Banks | Interest Rate | Eligibility | How to Apply