Gold Loan for Farmers

Manage the varying expenses of your farm with a high-value gold loan.
Gold Loan
4 min
17 February 2024

Agriculture has always been the backbone of India's economy. It is the largest sector that provides employment to most of the population. Farmers, as the key players of this sector, require financial assistance to fund their agricultural activities. Their dependence on the monsoons, fluctuations in crop yield, and price variations of agricultural produce make it challenging to sustain their livelihood. In this scenario, Gold Loan for farmers has emerged as one of the most preferred financial assistance options.

Gold loan for farmers

For farmers, gold loan is a hassle-free and straightforward way to avail of funds in the hour of need. Farmers can pledge their gold ornaments against a loan, and utilise the same to address their financial needs. Unlike other loans, Gold Loan for farmers does not require extensive documentation, and disbursal is quick. The loan amount ranges from Rs. 5,000 to Rs. 2 crore, depending on the gold weight and purity pledged.

The eligibility criteria for availing a Gold Loan for farmers are minimal. The applicant must be an Indian citizen of twenty-one years or above with a reliable source of income. They must possess gold in the form of jewellery.The loan amount is calculated by a 30-day moving average of India Bullion and Jewellers Association Ltd. (IBJA). The repayment tenure is flexible, ranging from a month to a year, and the interest rates are competitive.

Features and benefits of gold loan for farmers

Here are the key features and benefits of gold loans:

  • Partial release facility: Borrowers have the option to repay a portion of their loan and retrieve some of their gold jewellery before the end of the loan term, offering greater financial management flexibility.
  • No prepayment or foreclosure Charges: Gold loans do not have any charges for prepayment or foreclosure, allowing borrowers to repay their loans early without extra costs, thus reducing their overall interest expenses.
  • Accurate gold evaluation: Advanced karat meters ensure precise and fair assessment of the gold's purity, guaranteeing that borrowers receive the best possible value for their gold.
  • Complimentary gold insurance: Gold loans include free insurance coverage against theft or loss of the gold while in the lender's custody, providing borrowers with added security and peace of mind.
  • Multiple repayment options: Borrowers can select from various repayment plans, including monthly, bi-monthly, quarterly, half-yearly, or annual interest payments, with the principal amount due at the end of the loan term.
  • Simplified application process: The application process for gold loans is easy and hassle-free, with options to apply online and assistance from customer representatives at local branches.
  • Easy application process: Apply for a gold loan online. Our customer representative will help you with your application when you visit our Gold Loan branch in your city.
  • Gold loan of up to Rs. 2 crore : We offer gold loans starting from Rs. 5,000 up to Rs. 2 crore. You can choose the amount that suits you best from the offer extended to you.
  • 800 branches and growing : We have just opened 60 new branches and are adding more all over India. Additionally, we are opening new branches in the cities where we already have operations.

These features and benefits make gold loans an efficient and advantageous financial solution, ensuring they receive quick access to funds with minimal inconvenience.

Eligibility criteria to avail gold loans

To qualify for a gold loan, applicants must meet the following criteria:

  • Age: The applicant should be between 21 to 70 years of age.
  • Purity of Gold: Gold jewellery or ornaments should have a purity of 18-22 karat.
  • Income Proof: Generally not required, but some lenders may ask for proof of income.
  • Residential Status: Applicants must be a resident of India.

Documents required for agriculture gold loan

To apply for a gold loan, you need to provide one of the following identification and verification documents:

  • Aadhaar Card
  • Voter ID Card
  • Passport
  • Driving Licence
  • NREGA Job Card
  • Letter Issued by National Population Registration

Agricultural gold loan interest rate for farmers

With Bajaj Finance, you can get a gold loan interest rate starting at just 9.50% per annum that can be utilised for multiple purposes. It includes purchasing seeds and fertilisers, equipment and machinery for farming, land consolidation, paying off debts, meeting medical emergencies, or any other short-term financial requirement. The farmers can also use the loan to diversify their agricultural activities and explore new areas of farming.

The Gold Loan for farmers also comes with the benefits of safety, security, and transparency. The gold ornaments or coins pledged are stored in a secure vault under the custody of the lender. The lender provides insurance coverage for the pledged gold against any loss or damage. The loan transaction is transparent, and there are no hidden charges or processing fees. The farmers receive a loan agreement with all the relevant details and the repayment schedule.

Gold Loan for farmers is an excellent option for those who are not eligible for other types of loans due to their low credit score or lack of collateral. Since the loan is secured against gold, the credit score of the applicant does not matter. It is also available for farmers who do not have any land to put up as collateral.

It is an ideal financial assistance option that provides quick and hassle-free access to funds at interest rate starting from 9.50% p.a. for agricultural activities. It offers flexibility in terms of loan amount, repayment tenure, and end-use of funds. It empowers farmers to invest in their agricultural activities, diversify their farming portfolio and improves their yields. It contributes to the overall growth of the agriculture sector, and subsequently, the Indian economy.

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Frequently asked questions

What is an agriculture gold loan?

An agriculture gold loan is a financial product where farmers can pledge their gold jewellery as collateral to obtain funds. These loans are typically used for agricultural purposes such as purchasing seeds, fertilisers, equipment, or covering other farming expenses, providing timely financial support to farmers.

What is the interest rate of agricultural gold loans?

The interest rate for agricultural gold loans typically ranges from 9.50% to 28% per annum, depending on the loan amount, and repayment tenure.

Who is eligible for an agriculture gold loan?

Any Indian citizen, aged between 21 and 70 years of age can apply for a gold loan. All you need is any one of the above mentioned KYC documents and 18-22 karat gold jewellery.

What is the maximum gold loan for agriculture?

With Bajaj Finance, you can get a gold loan of up to Rs. 2 crore against your gold jewellery.

What is a rural gold loan?

A rural gold loan is a financial service allowing individuals in rural areas to borrow money by pledging their gold as collateral. It provides quick access to funds for agricultural needs, emergencies, or personal expenses, leveraging gold assets without selling them.

What is the Kisan gold loan scheme?

The Kisan Gold Loan Scheme is a financial product designed for farmers, providing loans against gold jewellery to meet agricultural needs. It offers quick funds for purchasing seeds, fertilisers, and equipment, ensuring timely crop cultivation. This scheme features flexible repayment options and competitive interest rates tailored to farmers' requirements.