Banks extend hassle-free funds to farmers who are involved in crop production and allied agriculture activities. Lucky you are if you have gold jewels and get loans for agriculture. The lowest interest rate on gold loans can be availed from banks for purely for agriculture purposes. Any farmer who is involved in agriculture and allied activities can walk into any bank across India with gold jewels and get money at low interest rate. Bank generally extend up to 75% value of the gold jewels as the loan amount. However, this may vary from lender to lender.
Interest Rate: For loans up to Rs. 3 Lakhs, most banks charge 7% of interest rate, and for borrowers who make on-time repayment gets a subsidy of another 3%, hence making it only 4% per annum. However, normal interest rate will be applicable on outstanding loan amount after the interest subvention period.
For loans above Rs. 3 Lakhs, the interest rate is fixed at 9% and above in most banks. However, this varies from bank to bank as the MCLR is different for each lender.
Repayment: The agriculture gold loans generally have the tenure of 12 months. For repayment period more than a year, the interest rate will vary as no subvention will be provided on the interest rate.
Eligibility Criteria: 

•    The applicant should be a farmer
•    The borrower should be an Indian Resident
•    The applicant should possess gold jewels

Documents Required to Get Agriculture Gold Loan:

•    Duly filled in application form
•    2 latest passport size photographs
•    Identity proof- Voter ID card/PAN card/Passport/Aadhaar card/Driving License etc.
•    Address proof: Voter ID card/Passport/Aadhaar card/Driving license etc.
•    Proof of agricultural land/ cultivation

You can apply for this agriculture gold loan by visiting the nearby branch. You must also remember that the loan is provided only for agriculture purpose.