Agriculture 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 product, 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:
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Loan amount
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.
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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.
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Margin
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.
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Interest rate
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.
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Collateral
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.
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Repayment tenure
The repayment tenure for a gold loan for farmers depends on the loan type. Usually, the repayment tenure is flexible. Based on repayment capability, farmers can select the most suitable tenure and pay interests accordingly. They can use a gold loan interest calculator online to choose a convenient repayment tenure.
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Evaluation
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.
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Safety protocols
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.
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Documentation
A simple documentation process is followed to ensure quick access to funding through hassle-free verification.
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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.
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Part-release facility
Farmers can release a portion of the pledged gold partially by repaying an amount equivalent to its value.
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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 Applicants should be between the age of 21 years and 70 years.
- 3 Applicants must be engaged in agriculture or any allied activities.
Applicants must be involved in RBI-approved and government-classified agriculture activities.
Documents Required for Agriculture Gold Loan
Submit the following documents for verification:
- Duly filled loan application form
- Aadhaar Card
- Voter ID card
- Driving licence
- Passport
- NREGA job card
- Letter from National Population Registration
- Passport-sized photographs
You might also be asked to submit additional documents. Make sure to find the requirements beforehand to streamline the application process better.
Agriculture gold loan interest rates and charges
Since the agriculture gold loan is secured against physical gold jewellery, the interest levied on such loans is generally on the lower side. Bajaj Finance offers an interest rate starting at just 9.50%* per annum. Following are the other fees and charges associated to Bajaj Finserv Gold Loan.
Types of fee |
Applicable charges |
Interest rate |
9.50% to 28% per annum |
Processing fees |
0.12% of the loan amount (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 Interest |
3% per annum on outstanding balance Penal Interest margin/ rate will be over and above the interest rate slab mentioned above which shall be applicable/ chargeable in case of default in repayment of the outstanding dues post maturity. |
Part-prepayment charges |
NIL |
Foreclosure charges |
Minimum 7 days interest Scenario – Foreclosure charges are “0”, but in case the customer closes the loan within 7 days of booking, minimum 7 days interest is charged. |
Auction charges |
Charge for physical notice – Rs. 40 (inclusive of applicable taxes) per notice |
The interest rates applicable on gold loans are dynamic and frequently change due to external factors.
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Frequently asked questions
Bajaj Finance offers gold loan for farmers to help meet their agricultural needs. The agriculture gold loan starts from Rs. 5,000 up to Rs. 2 crore with interest rates starting from 9.50% p.a. This loan comes with multiple repayment options, and a free insurance of your pledged gold.
The agriculture gold loan rate of interest offered by Bajaj Finance is competitive. You can easily get a gold loan with interest rates starting from 9.50% per annum.
Anyone who is an Indian citizen, aged between 21 and 70 years, can apply for a kisan gold loan. The gold loan comes with a simple verification process wherein you just need to provide any one KYC document (Aadhaar Card, voter ID card, driving licence, or passport) to avail of the loan.
With Bajaj Finserv Gold Loan you can get a loan starting from Rs. 5,000 up to Rs. 2 crore. This Krishi gold loan comes with no end-use restrictions and can be used to meet any expenses.
With Bajaj Finserv you can get a maximum agri gold loan up to Rs. 2 crore with interest rates starting at 9.50% per annum.
Rural gold loan is a financial service tailored for individuals in rural areas. It allows you to use your gold jewelry as collateral to secure a loan. This type of loan is designed to meet the financial needs of crop production, farm administration, and allied agricultural activities like dairy, poultry, fisheries, etc.
