Agricultural Gold Loan: Interest Rate, Eligibility & Its Benefits

Agricultural gold loan

Since ancient times, agriculture has served as India’s backbone. Therefore, this sector has to be provided with the best possible agricultural products.

However, in most cases, it is seen that farmers cannot manage everything on their own, and they need help from others in the form of financial aid or other assistance.

The government recognises gold loan NBFCs’ role in supporting financial inclusion by making loans readily available to the public.

The majority of NBFCs provide gold loans to farmers to aid them in various agricultural and related operations. 

Buying land, purchasing irrigation equipment or machinery, increasing inventory or stock, crop cultivation, etc., are examples of these operations.

With Muthoot FinCorp, get an option for an agricultural gold loan near me, where gold loans can be availed at interest rates starting from 11.99% p.a. 

What are the Eligibility Criteria for the Agricultural Gold Loan?

Agricultural gold loan eligibility conditions will vary depending on the gold loan provider. 

To be eligible for a Muthoot FinCorp gold loan, individuals must meet the following requirements:

  1. Age

A resident Indian citizen must be between 18 and 65 to qualify for the gold loan.

  1. Nature of Employment

A gold loan can be applied for by any resident Indian citizen who is involved in agriculture or related pursuits.

  1. Gold Purity

If someone wishes to take out a Muthoot FinCorp gold loan, the purity of the gold they supply as collateral must be between 18 and 24 karats.

  1. LTV Ratio

The loan to value (LTV) ratio is a financial ratio that depicts the maximum loan amount that can be granted to a gold loan applicant based on the gold’s underlying worth.

A farmer can borrow up to 75% of the value of their gold with a Muthoot FinCorp gold loan.

  1. Loan Amount 

Before determining the loan amount, lenders will assess the gold pieces (purity, weight, and current market worth). 

A farmer can acquire a maximum loan amount of Rs. 50 lakhs with a Muthoot FinCorp gold loan.

To apply for a gold loan near me, a farmer must provide the following documentation to Muthoot FinCorp:

Submit any of the following to prove the identity:

Any legitimate government-issued Photo ID proof like a PAN card, driver’s licence, passport, voter’s ID card, or Aadhar card.

Submit any of the following documents as evidence of address:

Utility bills like electricity or water bills, Aadhar or Voter’s Card, Rent Agreement, or Bank Statement.

What are the pros of taking out an agricultural gold loan?

There are several pros to taking out a gold loan, including the following:

  • Obtaining an agricultural gold loan is a relatively quick process. After meeting the lender’s standards, the farmer can get cash immediately. 

Obtaining a gold loan is simple with Muthoot FinCorp. The required gold loan is processed within 30 minutes after the farmer submits the documentation.

  • An agricultural gold loan can be obtained with just a few documents. Most lenders do not even ask for evidence of income or a credit score for a gold loan.
  • Since gold is used as collateral, gold loans have lower interest rates than personal loans. Farmers can receive a gold loan from Muthoot FinCorp with interest rates starting at only 11.99% p.a.
  • Processing costs and foreclosure charges are usually waived or reduced with a gold loan.  

The processing cost with Muthoot FinCorp is low, ranging from Rs. 20 to 0.25% of the loan amount, and there are no foreclosure charges if they repay the loan in full within three months.

  • All gold loan plans are tailored to meet farmers’ needs. The ease of application and the flexibility of repayments benefit every gold loan applicant.
  • Further, the pledged gold jewellery is properly stored in secure vaults.

Conclusion

A gold loan is a great alternative for those who wish to keep their gold while still getting the money they need.

The gold loan procedure is very quick, making it a viable option during difficult circumstances.

Before taking out a gold loan near me, farmers need to make sure they research the lender and compare interest rates and repayment terms to discover the best offer for them.

Further, farmers need to be aware of the facts of the loan they are taking and the potential implications. They need to ensure that they will be able to repay the debt.

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