What Is An Agriculture Gold Loan Scheme?

The government introduces many schemes for helping people avail gold loans and especially for farmers. There are agricultural gold loans for farmers, which start from a rate of interest of 7% and onwards. This agricultural gold loan has various conditions, and the eligibility, rates of interest, tenure period etc., also vary according to different banks and lenders. These loans can be availed at a rate of interest that is 7% onwards, and the gold loan amount is sanctioned as per the gold loan per gram; a farmer can avail a loan of any amount, whether it is ₹1,000 or it is ₹ one crore, it offers a flexible repayment option whether the farmer repays on EMI basis or lump sum amount, it depends on the bank or lender and the borrower, they have a flexible tenure which can range between 1 month to 36 months, gold loans generally have minimal processing charges that can be anywhere between nil-1%.

The agricultural gold loans have a slight difference. They require certain things such as:

1) The borrower should fulfil the KYC guidelines as per the request of the bank or lender.

2) The borrower should be involved in agricultural activities or allied activities.

3) The RBI should classify the agricultural that the borrower undertakes as under the agricultural sector.

4) The borrower must be between the age group of 18 years and 68 years.

There are also some documents requirements that need to be fulfilled:

1) KYC documents such as PAN card, driving license, voter ID, passport etc.,

2) Address proof, electricity bills, water bills, telephone bills, Aadhar card, PAN card, driving license, voter ID, passport etc., 

3) Duly filled application form and other necessary documents include proof for five years of business continuity (for self-employed individuals), passport size photographs etc.

There are some features that agricultural gold loans carry; let us take a look at some of these features:

1) They have an easy and hassle-free loan process, and the loan amount’s disbursement can be done quickly.

2) They are available with low-interest rates compared to other types of loans, and they begin at 7% and onwards per annum.

3) They offer a convenient repayment schedule that you can choose; you can either repay the EMI system or monthly instalments.

4) Gold loans require minimal documents, which means that the documentation process does not take a lot of time.

5) Most importantly, your gold is kept safe in the bank vaults, and you don’t need to worry about the safety of your gold, and you can get it back as soon as you repay the amount of the loan.

6) Some banks even provide the option of gold loan renewal.

These are some of the features offered along with the agricultural gold loan, making it easier to avail of a gold loan and use it as per your convenience. There is no rigid rule to use the loan money on any particular activity.

Many financial institutions and banks offer you agricultural gold loans such as Dena bank gold loan, Axis bank, HDFC bank etc. These loans are pretty convenient and easy to avail of as they are quickly available so that they can cater to your needs of quick funds as well. In addition, you can also apply for the gold loan online and get the loan with just the click of a few buttons; and Some documents requirements which makes it easier to get the gold loan as you can get the loan just by sitting at your home. This makes it easier to discuss the terms and conditions. As you just have to visit the bank branch once. So, these are all the benefits that agricultural gold loans can offer the farmers.

Also Read:- Things To Keep In Mind While Availing Of Gold Loan