Agriculture gold loan interest rate is a secured loan facility that allows farmers to access funds against gold. In essence, the purpose of this gold loan is to provide farmers quick access to credit to address agricultural requirements.

Typically, gold loans for farmers allow 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 raw materials, among others.

Features of Gold Loans for Farmers

The significant features of the Agriculture Gold Loan


Loan amount

Bajaj Finserv extends a high loan quantum to eligible farmers. This big-ticket loan allows borrowers to meet their financial requirements quickly and boost their agricultural production successfully.

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.


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.


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 in 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. 


Gold jewelry is appraised at 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 inbuilt motion detection technology. The safety protocols are the best in business in the entire country.


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 their convenience.

Part-release facility

Farmers can release a portion of the pledged gold partially 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.

Charges and interest

The most affordable gold interest rate offered by Bajaj Finserv ranges from 10% to 28% per year. The percentage of the loan amount that goes toward the processing costs is 75%. The amount of stamp duty, which must be paid in accordance with the legal requirements of each state, is subtracted up front from the loan amount. There is a cash handling fee of fifty cents for each cash payout. 

In the event that there is a default in the repayment of the outstanding dues after maturity, there will be a 3% annual penalty interest rate added to the outstanding balance. This penalty interest margin or rate will be in addition to the interest rate slab that was mentioned above and will be applicable or chargeable. The cost of providing a physical notification is forty cents per notice. The fee for recovery is five hundred rupees. The advertisement fee is 200/-

Seven days is the minimum time before interest is charged. In compliance with the rules that are particular to each state, an additional cess will be added to each and every charge.

Gold loan minimum tenure: The tenure options can range from a minimum of 3 months to a maximum of 48 months. Fees: The other fees and charges that might be applicable on a gold loan are a processing fee, late payment charges/ penalty for non-payment of interest, valuation fees, etc.

A secured loan facility that provides farmers with the ability to obtain cash against gold is known as an agriculture gold loan interest rate.