An agriculture gold loan is a gold loan that farmers can avail against the mortgage of the gold ornaments to fund their farming and allied activities. These include purchasing raw materials, buying a new plot of land, making investments in irrigational purposes, maintaining inventory and looking after crop cultivation. Generally, an Agri Gold Loan amount starts from Rs.25,000/- and ranges up to Rs. 25,00,000/-. Farmers are offered real-time access to the authorised sum and are entitled to pay interest on the used amount only. Also, backed by a quick approval process and overdraft facility, agriculture gold loans are easy to manage. This particular write-up will serve as an appropriate destination to know about what is agriculture gold loan overdraft, related schemes and eligibility criteria.
Agriculture Gold Loan – Features and Benefits
Agriculture Gold Loan Schemes
Here is a list of various agriculture loan Schemes made available in the market.
Cent Agri Gold Loan Scheme – Central Bank of India
Farmers or borrowers engaged with any agricultural activity can avail of this loan.
Processing Charges: NIL
Eligible Gold: 22 carat minimum
Repayment Period:
Multipurpose Gold Loan – State Bank of India
Farmers who cultivate their own land or engage with allied activities like poultry, dairy, sheep and piggery can avail of this particular loan scheme.
Processing Charges: NIL
Eligible Gold: Regular gold ornaments (18/20/22/24-carats) gold bars are not allowed
Repayment Period: 12 months from the date of loan disbursal
Farmers Gold Loan – Axis Bank
Axis Bank offers gold loans with quick approvals and adequate overdraft facilities against gold ornaments, enabling access to real-time funds when in need.
Processing Charges:
Eligible Gold: Negotiable
Repayment Period: 12 months
Agricultural Gold Loan – South Indian Bank
Farmers related to agricultural crop production and allied activities can proceed with this particular scheme.
Processing Charges: 0.25%
Eligible Gold: 22-carat gold jewellery
Repayment Period: 6 months to 12 months
Agricultural Gold Loan Eligibility and Documents Required
Eligibility
Documents Required
Agriculture Gold Loan – EMI Calculator
You can use Online EMI calculators on an online marketplace like MyLoanCare to calculate EMI on your loan using the steps mentioned below:
Once completed with the entry part, they will be provided access to an adequate EMI amount which is absolutely negotiable.
Agricultural Gold Loan – Process
The agriculture gold loan application process is made seamless by offering adequate customer support across the different offline branches of individual banks. Also, those opting for a loan overdraft facility are provided access to 75% of the approved amount. The farmers can use this amount as per their requirement and repay the interest of the used amount only. Unlike regular gold loans where the borrower is entitled to a fixed rate of interest, prescheduled loan tenure and a dedicated loan amount, the interest rate for an agricultural gold loan is calculated based on the usage level if availed with an overdraft facility and on a simple interest basis for regular schemes.
An agriculture gold loan provides access to quick funds within no time and is unique in its way. Indian farmers have long enjoyed the benefits of this system due to its immense popularity among rural cultures.