What is a gold loan and how it benefits farmers?
A gold loan is a secured loan where individuals pledge their gold ornaments to obtain quick funds for various financial needs. Farmers can also use this option to support agricultural expenses such as purchasing seeds, fertilisers, irrigation equipment, and machinery. Since the loan is backed by gold, the approval process is quick, requiring minimal documentation.
The gold loan interest rate depends on factors such as the loan amount, tenure, and market value of the pledged gold. Many financial institutions provide flexible repayment options, allowing borrowers to align payments with their income cycles. Whether for agriculture or other financial needs, a gold loan offers a hassle-free borrowing experience.
Benefits of gold loans for farmers
Gold loans provide several advantages to borrowers, including farmers who require immediate financial assistance:
- Quick approval: Minimal paperwork ensures fast loan processing.
- Competitive interest rates: The interest rate is lower than unsecured loans.
- Flexible repayment options: Borrowers can choose repayment plans that suit their financial situation.
- No credit score dependency: Gold loans do not require a high credit score.
- Secure storage: The pledged gold remains safely stored until the loan is repaid.
- High loan amount: Depending on the gold’s value, borrowers can access substantial funds.
How can you avail gold loans for farmers
Availing a gold loan is simple, quick, and requires minimal documentation. Farmers can either apply online via the Bajaj Finserv App or website or visit the nearest Bajaj Finserv Gold Loan branch. You need to visit with your gold jewellery and basic KYC documents like Aadhaar card, voter ID, or passport.
Here is how farmers can apply online:
- Click on ‘APPLY’ to open the online application form.
- Enter your 10-digit mobile number and click on ‘GET OTP.’
- Submit the OTP to verify your identity.
- Select your state and city to locate the nearest branch.
- Download your loan eligibility letter
After applying, a representative will call to confirm details and guide you on the next steps. This simple process makes gold loans an accessible solution for your financial needs.
How to use gold loans for different financial needs
Gold loans can be used for various financial requirements, including:
- Agricultural expenses – Buying seeds, fertilisers, and farm equipment.
- Business expansion – Investing in inventory or machinery.
- Emergency expenses – Covering medical bills or urgent financial needs.
- Education costs – Paying for tuition and academic fees.
- Debt consolidation – Managing existing financial liabilities.
By using gold loans wisely, borrowers can meet their financial goals without additional financial strain.
Agricultural development
As a farmer, it can be difficult to meet all your cultivation, farm maintenance, and investment needs. The costs are sometimes high and consume capital that is much needed for other purposes. Finance for agricultural development means that you can improve the output of your land and grow your business.
Farm administration
Starting a farming business or maintaining an existing one can be expensive. You can take a loan against your gold jewellery to support daily operations, buy land, upgrade your equipment, market your produce, safeguard inventory, and more.
Fish farming
To boost the efficiency of your fish farming operation, purchase and upgrade necessary infrastructure like aeration systems, water pumps, and automatic fish feeders. Expand your operations by allocating funds for more ponds and fish tanks.
Features and benefits: Gold loan for MSME
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Features and benefits of our gold loan
Watch this video to know more about the key features and benefits of our gold loan.
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Part-release facility
With our gold loan part release facility, you can repay a part of your loan and take part of your gold jewellery back before the end of your loan tenure.
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No part-prepayment or foreclosure fee*
Repay a part of your loan in advance or pay the entire amount at no extra cost.
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Transparent evaluation
We use best-in-class karat meters across all our branches to make sure you get the most value for your gold.
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Free insurance of gold
Our free insurance covers against theft or misplacement of your gold jewellery while it is in our custody.
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Convenient repayment options
We offer multiple gold loan repayment options where you may choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity. The repayment tenure can range from 1 day to 12 months.
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Easy application process
Apply for a gold loan online. Our representative will help you with your application when you visit our gold loan branch in your city.
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Gold loan of up to Rs. 2 crore
We offer instant 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.
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800 branches and growing
We have recently opened 60 new branches and are adding more across India. We are also opening new branches in the cities that we operate in.
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Gold loan renewal
Borrowers may renew their gold loan at the end of loan tenure, subject to LTV being as per regulatory norms. A fresh credit appraisal will be done by us prior to renewal. However, renewal post actual loan maturity date is restricted.
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Gold loan top-up
You can apply for a top-up on your existing gold loan before its maturity, as long as the loan-to-value (LTV) remains within regulatory limits and a fresh credit assessment is completed by us. However, if your loan has passed its maturity date but is still active due to outstanding dues, a top-up is not allowed.
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Still haven’t found what you are looking for? Click on any of the links at the top of this page.
Gold Loan EMI Calculator
Plan your instalments better.
Eligibility criteria and documents required for gold loan for MSME
Anyone can apply for our gold loan, as long as they meet the basic gold loan eligibility criteria mentioned here. They will be asked to submit a few basic documents to complete their application process.
Eligibility criteria for gold loan
- Nationality: Indian
- Age: 21 to 70 years
- Gold purity: 18-22 karat
Documents required for gold loan
Any one of the following:
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
- NREGA job card
- Letter issued by National Population Registration
PAN card is not required. However, if you apply for a gold loan of Rs. 5 lakh or above you will be asked to submit your PAN card.
Gold loan rate of interest (June 2025)
| Types of fee | Applicable charges |
| Interest rate | 9.50% to 24% per annum |
| Processing fees | 0.15% of the loan amount (inclusive of applicable taxes). Subject to a minimum Rs. 99 (inclusive of applicable taxes) and maximum of Rs. 600 (inclusive of applicable taxes). |
| Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount |
| Cash handling charges | Rs. 50 (inclusive of applicable taxes). Applicable for cash disbursement only. |
| Penal charge | 3% per annum on Outstanding Balance. Penal Charge will be over and above the interest rate which shall be applicable/chargeable in case of default in repayment of the Outstanding Dues post-maturity. |
| Convenience fee | Convenience fee of Rs. 149 (inclusive of applicable taxes) shall be levied for part release of ornament(s) pledged. |
| Part-prepayment charges | NIL |
| Foreclosure charges | Nil, any time post disbursement of loan |
The interest rates applicable on gold loans are dynamic and frequently change due to external factors.
Still have not found what you are looking for? Click on any of the links at the top of this page.
Frequently asked questions
With Bajaj Finance, the maximum limit for a gold loan for farming can extend up to Rs. 2 crore. To determine the exact amount you are eligible for based on your gold jewellery, it is advisable to use our online gold loan calculator. This tool helps you assess the loan amount that suits your needs and collateral value.
If you are between the ages of 21 and 70 years, you can obtain a gold loan for farming from Bajaj Finance. To check if you qualify, refer to the gold loan eligibility section on the page above.
Bajaj Finserv Gold loan eligibility includes any Indian citizen aged between 21 and 70 years, making them eligible to apply for a gold loan for farming.
For a gold loan for farming of up to Rs. 1,99,999, you can receive cash. Amounts above this limit will be transferred to your bank account.
No, agriculture and farming gold loans are the same. Both terms refer to gold loans designed for farmers, helping them meet their agricultural financing needs with the same financial product.
Farmers looking for the best deals on gold loans should compare interest rates across banks and NBFCs. Opting for lenders offering the low gold loan interest rate ensures lower repayment costs. Check for minimal processing fees, flexible repayment options, and high loan-to-value (LTV) ratios to maximise benefits. Maintaining a good repayment history can also lead to better terms.
Gold loans provide quick access to funds, helping farmers manage seasonal expenses like purchasing seeds, fertilisers, and equipment. Since farming income fluctuates, these loans offer multiple repayment options, allowing farmers to repay after the harvest. With low gold loan interest rates for farmers, they can access credit without high borrowing costs. The fast processing and minimal documentation make gold loans a reliable option for urgent agricultural needs. By pledging gold assets, farmers can secure necessary funds, ensuring smooth operations throughout seasonal cycles without relying on traditional credit lines.
