All About Agriculture Gold Loan

Agriculture Gold Loan is a type of loan that is provided to farmers and agriculturists against the pledge of gold ornaments, coins, or bars. This loan is offered by various banks, financial institutions, and Non-Banking Financial Companies (NBFCs) in India.

 

Features of Agriculture Gold Loan:

 

Loan Amount: The loan amount is based on the weight and purity of the gold pledged.

 

Interest Rate: The interest rate on agriculture gold loans is generally lower than other types of loans. The interest rate may vary depending on the lender and the loan amount.

 

Repayment: The loan can be repaid in flexible repayment tenures ranging from 6 months to 5 years, depending on the lender.

 

Pledge: Gold ornaments, coins, or bars are pledged as security for the loan.

 

Processing fee: A processing fee is charged by the lender for processing the loan application. The processing fee varies from lender to lender.

 

Benefits of Agriculture Gold Loan:

 

Easy availability: Agriculture gold loans are easily available to farmers and agriculturists, as gold is a common asset in rural areas.

 

Low interest rates: The interest rates on agriculture gold loans are generally lower than other types of loans.

 

Quick processing: Agriculture gold loans are processed quickly, and the loan amount is disbursed within a short period.