Agri Gold Loan Scheme
The need for financial requirements is not limited to salaried and business individuals. Entities involved in agriculture and allied activities also require timely access to funds to address their credit requirements.
Since agriculture is a crucial component of India’s GDP, the government and leading financial institutions offer tailored financing options to provide farmers access to credit. Bajaj Finserv offers one such personalised financing products, the agri gold loan scheme.
Agriculture gold loan is a secured loan facility that allows farmers to access funds against gold. In essence, the purpose of this gold loan is to provide farmers quick access to credit to address agricultural requirements.
Typically, gold loans for farmers allow them to get funds to cater to financial requirements related to:
- Crop production
- Allied activities
To elaborate, farmers can access funds through the Kisan gold loan scheme to meet multiple expenses such as purchasing land, machinery, and equipment, buying inventory, and raw materials, among others.
Features of Gold Loan for Farmers
The significant features of the agriculture gold loan include:
Bajaj Finserv extends a high loan amount quantum to eligible farmers. This big-ticket loan allows borrowers to meet their financial requirements quickly and boost their agricultural production successfully.
Type of loan
Agriculture gold loans are usually available in the form of – term loans or demand loans. Applicants can select either of the two options based on their needs and requirements.
In the case of the credit requirement for crop production, the sanctioned loan amount depends on the scale of finance. Alternatively, it could also depend on the market value of the pledged gold. The percentage of the same is decided by the financier and is based on internal parameters.
Eligible applicants can receive a high loan quantum against competitive gold loan interest rates. The accompanying charges are also quite nominal. Usually, applicants with a stable income and clean credit history are more likely to secure a gold loan at competitive rates and simple repayment terms.
Applicants can provide gold ornaments or coins as collateral security. In most cases, gold bullion is not accepted as collateral. The quality of gold offered as collateral is weighed in before loan approval.
The repayment tenor for a gold loan for farmers depends on the loan type. Usually, the repayment tenor is flexible. Based on repayment capability, farmers can select the most suitable tenor and pay EMIs accordingly. They can use a gold loan EMI calculator online to choose a convenient EMI and tenor combination.
Gold jewellery is appraised from the safety of applicants’ homes. In addition, an industry-grade carat metre is used to evaluate the collateralised gold. This further ensures authenticity and accuracy.
The gold offered as collateral is stored in highly secured vaults with 24x7 surveillance and in-built motion detection technology. The safety protocols are the best in business in the entire country.
A simple documentation process is followed to ensure quick access to funding through hassle-free verification.
Foreclosure and part-prepayment
Gold loan offers part-prepayment and foreclosure facilities at zero charges. Such facilities allow borrowers to adjust loan burdens and repay them at convenience.
Farmers can release a portion of the pledged gold partially by repaying an amount equivalent to its value.
Complimentary insurance policy
Applicants can avail of a complimentary gold loan insurance policy. This feature will help to cover for the loss or theft and misplacement of pledged items.
Agriculture Gold loan Eligibility Criteria
Apply for an agriculture gold loan by following these steps below:
- 1 Applicants must comply with KYC requirements
- 2 Farmers should be between the age of 21 years and 70 years
- 3 Applicants must be engaged in agriculture or any allied activities
- 4 They should be engaged in any activity approved and classified by RBI or the Government of India under the agriculture sector
Documents Required for Agriculture Gold Loan
Submit these to complete agriculture gold loan verification:
- Duly filled loan application form
- KYC documents
- Address proof
- Passport-sized photographs
- Proof of ownership of agricultural land
- Proof for crop cultivation
You might also be asked to submit additional documents. Make sure to find the requirements beforehand to streamline the application process better.