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Agriculture Gold Loan
Agricultural gold loan is a financial tool specifically designed to address the needs of farmers. It empowers them to leverage their existing gold holdings, like jewellery as collateral to secure a loan for various agricultural purposes. These purposes include purchasing seeds, fertilisers and equipment or covering other operational costs. Discover the benefits of gold loans for farmers for funding agricultural expenses.
Features & Benefits
Gold Loans
- Flexible loan amounts tailored to your needs:
Customise your loan according to your requirements. Avail any amount between ₹50,001 and ₹40 lakhs as per your need.
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Eligibility for agriculture gold loan
Axis Bank provides easy gold loans against gold jewellery at attractive interest rates with convenient repayment tenures. You can find out more about the gold loan eligibility below.
Documentation for agriculture gold loan
To avail Axis Bank's Gold Loans facility, you need to submit certain documents. You can find the entire list of documentation for gold loan below.
Interest Rate & Charges
Interest Rate & Charges
Schedules of Charges**
Axis Bank offers Gold Loans at nominal charges and our Gold Loan charges are completely transparent and kept to a minimum so that you pay less upfront. Here’s what you have to pay:
| Parameters | Min | Max |
|---|---|---|
| Interest Rate | 9.75% | 17% |
| Tenure | 6 months | 36 months |
| Loan Amount | ₹50,001 | ₹40 lakhs |
| Processing Fee | 0.5% of loan amount | |
| Foreclosure Fee | 0% if the loan is pre-closed after 6 months | 2% if the loan is pre-closed within 6 months |
| Valuation Charges | ₹500 | ₹1,500 |
| Stamp Duty Charges | As per the applicable laws of the state | |
| Pre- Payment Charges | Nil | |
| Penal Charges | 8% PA
| |
*(Subject to change as per Bank’s discretion from time to time)
**Note - GST, TDS, other government taxes, stamp duty are as per prevailing rate will be charged over and above these charges.
Current prevailing rate:
| Fixed Rate Loan | 1 year MCLR | Spread over 1 year MCLR | Effective Interest Rate | Reset |
|---|---|---|---|---|
| Gold Loan | 8.80% | 8.20% | 17% | No Reset |
Goods and Services tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable) For further details, please click here
Axis Bank offers Gold Loans to farmers at attractive interest rates. The Reserve Bank of India has set certain guidelines when it comes to lending money through various loan schemes. Axis Bank adopts these guidelines, known as the Fair Practice Code for Lenders while offering Gold Loans.
The salient features of the same are:
In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them.
- The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.
- The Bank shall verify the loan application and if additional details/documents are required, these will be sought from the applicant.
- For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.
- The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.
- All the terms and conditions and other caveats will be duly communicated by an authorised official of the Bank to the customer in writing.
- The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption "I/WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME/US".
- A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.
- The sanction letter/loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.
- Honouring of cheques issued for the purpose other than specifically stipulated in the sanction.
- Drawings in an account once it is classified as NPA.
- No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.
- Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.
- The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.
- Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.
- Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower.
- The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter.
- The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance/accelerate the payment/accelerate the performance under the loan agreement. Or seek additional securities.
- The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid/settled.
- In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.
- In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.
- In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks/FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.
Frequently Asked Questions
Axis Bank provides Gold Loans for agricultural and allied activities to farmers and rural citizens. You can find the answers to all your queries such as the best way to apply, your nearest Axis Bank branch, etc. in the Gold Loans FAQs section below. Make sure to go through the FAQs for Gold Loans, before you apply.
You can start the process of applying for Gold / Loan Overdraft in any of the following ways:
Online by clicking here or just SMS “IGL” 56161600.
For a complete list of Axis Bank branch addresses where you can apply for Power Gold Loan, please click here
Gold Loan Overdraft facility offers a tenure of 12 months for repayment.
Minimum loan amount of ₹50,001 & maximum Loan amount of ₹40 lakhs for Agri Gold Loan
Minimum loan amount of ₹50,001 & maximum Loan amount of ₹40 lakhs for Gold Overdraft
Some of the factors we consider when deciding a loan amount are:
Your requirement and valuation of Gold and Your repayment capacity
Your application for a Gold Loan/ Gold Overdraft needs to be supported by the following documents:
- Passport sized Photographs
- Proof agricultural land records / allied agricultural activity
- Photo identity, address and signature proof
- PAN card/Form 60
- Age proof
The same day! Accounts get activated the day that we receive your application along with all the necessary supporting documents and gold jewellery as security.
Yes, bank charges a non-refundable processing fee and valuation fee for every Gold Loan/ Overdraft application.
Interest is calculated on Simple Interest basis for Gold Loan and for gold overdraft interest is calculated as per the usage.
Axis Bank proactively reminds customers of their dues and advises you to keep adequate funds available to avoid additional costs. If you miss making a timely payment, late payment charges will be applicable according to the terms of your loan / overdraft agreement
Before we process a foreclosure, all outstanding dues must be cleared. So we request you to first check for and clear any remaining amount that may be payable towards your Gold Loan by requesting a foreclosure statement from branch. Once all outstanding dues have been cleared, please submit a foreclosure request at Branch from which you obtained the Gold Loan / Overdraft and we will begin processing your request.
ATM Card and Cheque Book shall be issued against Gold Overdraft account. Customer Can use Net Banking also for Deposit purpose.
Any pre-payment / excess amount paid by you to the bank shall be appropriated in the loan account basis the below criteria / methodology:
1. Costs, charges and expenses that the bank may expend to service, enforce and maintain the security and therefore recover the loan, interest, and all sums due and payable by the borrower to the bank under this agreement (charges)
2.Interest on amounts in default and loss of profit on the defaulted amount/s (penal interest)
3.Interest
4.Principal amount of the loan
Farmers can obtain quick, hassle-free loans secured by gold assets, empowering them with flexible financial solutions.
The interest rate on Gold Loan for farmers varies as it is linked to the MCLR.
Farmers can leverage their gold assets to secure loans, providing immediate liquidity for agricultural needs with minimal documentation and quick processing.
Agri Gold Loans offer farmers quick access to funds, enabling them to meet agricultural expenses promptly, with flexible repayment options tailored to their needs.
The minimum amount for Agri Gold Loans is ₹50,001 and Gold Loan Overdraft facility is given from ₹50,001 - ₹40 lakhs.
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