An agriculture gold loan is a secured loan facility that allows farmers to access funds against gold. Essentially, this gold loan aims to provide farmers quick access to credit to address agricultural requirements.
Typically, the gold loan process fee for farmers allows 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 buying raw materials.
Features of Gold Loans for Farmers
The significant features of the agriculture gold loan include:
Loan amount
Bajaj Finserv extends a high loan quantum to eligible farmers. This big-ticket loan allows borrowers to meet their financial requirements and boost their agricultural production quickly.
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.
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.
Interest rate
Eligible applicants can receive a high loan quantum at 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.
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 before loan approval.
Repayment tenor
The repayment tenor for a gold loan for farmers depends on the loan type. Usually, the repayment tenor is flexible based on repayment capability. Farmers can select the most suitable tenor and pay EMIs accordingly. They can use a gold loan EMI calculator online to choose a convenient EMI and tenor combination.
Evaluation
Gold jewelry is appraised for the safety of applicants’ homes. In addition, an industry-grade carat meter is used to evaluate the collateralized gold. This further ensures authenticity and accuracy.
Safety protocols
The gold offered as collateral is stored in highly secured vaults with 24×7 surveillance and built-in motion detection technology. The safety protocols are the best in business in the entire country.
Documentation
A simple documentation process is followed to ensure quick access to funding through hassle-free verification.
Foreclosure and part-prepayment
Gold loans offer part-prepayment and foreclosure facilities at zero charges. Such facilities allow borrowers to adjust loan burdens and repay them at convenience.
Part-release facility
Farmers can partially release a portion of the pledged gold by repaying an amount equivalent to its value.
Complimentary insurance policy
Applicants can avail of a complimentary gold loan insurance policy. This feature will help to cover the loss, theft, and misplacement of pledged items.
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Charges and interest
Bajaj Finserv offers an annual interest rate of 9.50% to 28% on gold deposits. The loan processing cost is 75% of the borrowed money. The loan amount will be reduced by the amount of any applicable stamp duty (as determined by the rules of each individual state). There is a 50/- charge for cash disbursement at the cash node.
In the event of a post-maturity default in repayment of outstanding dues, a penalty interest rate of 3% per annum shall be applicable and payable, with the penal interest margin/rate being added on top of the interest rate slab mentioned above. The cost of sending a physical notice is 40/-. The fee to recover your possessions is 500/-. There is a minimum interest charge term of 7 days and an advertising cost of 200/-. All fees subject to state taxes will be increased by the additional cess.
This agriculture gold loan aims to provide farmers quick access to credit to address agricultural requirements. 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 buying raw materials.
