Kisan gold loan is available in India for various uses, including acquiring farming and irrigation equipment, growing crops, and other agriculture-related activities. In addition to farmers, these loans are also offered to those involved in other agri-related industries, including animal husbandry, horticultural, apiculture, fishery, silk cultivation, and plantation crops.
Compared to other types of loans accessible to people, Kisan gold loan are issued cheaper. The primary goal of these loans is to assist farmers in meeting their numerous monetary requirements. This article will examine the many kinds of agricultural loans available in India, how to apply, eligibility requirements, and the application process itself.
Eligibility criteria
- The applicant must follow the lender’s KYC requirements.
- Applicant working in agriculture or related fields
- Applicants whose operations are categorised as agricultural by the GOI/RBI
Documents required
- Filling out the application form entirely and attaching passport-sized photos
- Documents proving the applicant’s identity: Passports, Voter’s ID, PAN, Aadhaar, Driving License, Electricity Bills
- Proof of ownership of agricultural property under the applicant’s name
- Evidence that the crop can be cultivated
- Certificate of Incorporation for a Business
- Any additional documents that the lender may want
Please keep in mind that the bank’s qualifying conditions and documentation requirements may differ. The following are the most typical requirements for agricultural gold loans. Before applying, please double-check with the bank.
The steps needed in obtaining a gold loan for agriculture
Loan application for gold: Comparing the lenders is the first step. You may apply online or in person. You will be sent an application form to complete, which must be filled out completely.
Submission: Following the application procedure, you will be required to deliver your gold jewellery or coins to the lender as security. It can only be completed offline by personally visiting the branch or organisation.
Evaluation: Following receipt of your jewellery, the lender will employ an in-house gold assessment method to estimate the worth of gold based on current market value. It determines the amount of the gold loan. The more valuable something is, the more money may be borrowed. It may also be done using a gold loan eligibility calculator.
Documentation procedure: Following the examination, you must submit papers to the lender. This step is required to continue.
Authentication and disbursement: A borrower must meet several lender requirements. They have to do with the age of the promised jewellery or the purity of the jewellery. As long as the candidate has an acceptable CIBIL score, they may also apply for gold loans for farmers. Your loan money will be sent into your bank account after the lender has verified your identity.
Repayment: Since we’re discussing the whole procedure, the last step is to refund the money. You may pick from four different repayment ways, including EMI, Bullet payback, Advance interest payment, Regular interval interest payment, and flexibility.
It is how to get a gold loan for farmers. It informs you of the situation and helps you avoid difficulties while applying for the loan.
Term definitions for a gold loan for farmers
Using large, rather than minor, jewellery pieces to get a loan increases the per-gram gold value by 75%. Gold jewellery with a purity of 18 or 20 carats is of lower purity. As a result, they provide a poor value. Hallmarked jewellery has a common processing charge, which reduces the loan’s cost. These are a few suggestions for increasing your average gold price per gram.
Loan amount: For gold, a larger loan quantity gets a lower Bajaj Finserv gold loan interest rate and vice versa. The LTV or Loan to Value ratio determines the loan amount against the pledged ornaments. Farmers who take out gold loans with a high LTV pay a higher interest rate and vice versa.
Foreclosure or prepayment: There may be times when you desire to prepay a portion of your loan ahead of schedule. A foreclosure occurs when a debt is completely paid off ahead of schedule. Banks and other financial institutions levy interest rates ranging from 0% to 1% in such circumstances. A lock-in term is also included in particular loans. Such debts cannot be repaid ahead of schedule.
Overdraft facility: Some banks and other financial organisations may also provide farmers with an overdraft option on gold loans from these institutions. They may put up to 75% of the value of gold in your account. You may use it as needed and pay interest on the amount you use.
Fee for processing: A processing fee of up to 2% is added to the total. In addition, certain banks charge cheaper processing costs. Compare and contrast this with other lenders before making a final decision on which one to choose.
One of India’s most important industries is agriculture. The Indian government encourages national and commercial banks to give different loans to persons involved in agriculture and associated industries to motivate farmers to enhance the production from their fields. Make sure to shop around and evaluate features, advantages, and interest rates before deciding on the best option for your financial situation.
