What is an agri gold loan and how to apply for it?

Economic and financial requirements are not restrained to self-employed and salaried individuals. People engaged in agricultural or other allied activities need quick access to capital to meet their financial needs and requirements too. Agriculture being a crucial aspect of India’s GDP, the Government of India, the RBI, and other renowned financial institutions provide tailored credit options for farmers. One such credit option is an agri gold loan.

Know what is an agri gold loan

An agri gold loan is typically for a farmer. This secured credit option allows farmers and other applicants to gain access to necessary funds against pledged gold quickly. It is also known as an agriculture gold loan. Essentially, this credit option’s primary purpose is to offer farmers quick access to credit that aids them in addressing their respective agricultural and allied activity needs.

This credit option enables farmers to gather funds that aid them in catering to various financial needs and requirements, usually related to:

• Fulfilling investment needs
• Agriculture allied activities
• Crop production

In addition, farmers can choose to access funds via the ‘Kisan’ gold loan scheme and fulfil various expenses, which may include the following:

• Land
• Equipment
• Inventory
• Machinery
• Raw materials, etc.

What are the eligibility criteria for an agri gold loan?

Here are the eligibility criteria one must meet to avail of an agri gold loan:

• Applicant’s age should be between 21 – 70 years old
• Farmers must comply with the lender’s KYC requisites
• Farmers must have ongoing engagement in agricultural or related activities

Furthermore, the activities that the applicants are engaged in must be classified and approved by the Government of India or the RBI under the agricultural sector.

How to apply for an agri gold loan?

Here are 5 simple steps one needs to follow in order to apply for an agri gold loan:

Step 1: Visit the official portal of your preferred lending institution.

Step 2: Locate the gold loan page and click on the “Apply Now” button.

Step 3: Next up, the gold loan online application form will appear on your screen.

Step 4: Fill up this application page carefully with all the details and enter the loan amount you wish to borrow.

Step 5: Provide your PAN details, 10-digit mobile number, and area pin code and click on “Submit Details”.

After completing all these steps, a representative from the lending partner will get in touch with you and guide you through the next steps.

What are the documents required for an agri gold loan?

Here are the required documents one must submit to apply for an agri gold loan:

• Filled-up application form
• Identity proof: KYC documents
• Passport-sized pictures
• Address proof
• Proof of crop cultivation
• Proof of agricultural land ownership
• Additional documents, as per their lender’s requirement

To streamline the loan procedure, ensure to keep the necessary documents handy prior to the application.

What are the features and benefits of an agri gold loan?

Here are the 12 key features and benefits of opting for an agri gold loan:

1. High-value loan sanction quantum for eligible farmers
2. Attractively competitive interest rates for qualified applicants
3. Simple, hassle-free and quick documentation process
4. Pledge gold coins or ornaments as collateral
5. Flexible loan repayment tenure
6. Multiple loan repayment options
7. 2 types of loans available- Demand loans and Term loans
8. Accurate and authentic gold valuation with industry-grade equipment
9. Zero charges on foreclosures and prepayments
10. Complimentary insurance policy for gold
11. Part-release of pledged gold upon paying equivalent capital
12. Top-notch security protocols with 24×7 CCTV surveillance

In conclusion, an agri gold loan not only provides farmers with quick access to required capital but also allows them to fulfil their investment needs. Since gold is an asset available in almost every household, irrespective of family income and status, agriculture gold loans are quite a viable option for farmers.