The agricultural industry is still seen as offering many job prospects. Most farming activities include crop cultivation, acquiring machinery, irrigation, dairy production, livestock raising, and animal husbandry. To cover their operating costs and investment needs, farmers need access to sufficient and hassle-free financing. When it comes to financing options, a gold loan is a desirable choice. In the case of gold loans for farmers, gold loan interest rate are relatively low.
They typically fall between 8.00% and 10.00% annually. Additionally, there is a benefit of some relaxation when it comes to processing and repayment of the farmer loan.
Gold Loan
Given that it is a loan against gold, it is a secured loan. Your gold jewelry is used as collateral by financial entities when lending money. The mortgage payment is often a proportion of the value of the gold.
The payback is done in the form of monthly installments. Your gold jewelry is returned once the entire amount has been paid. If you don’t pay your mortgage on time, the lender will sell your belongings to recoup the debt.
There are many lenders of gold loans in the nation, including banks and non-banking financial firms.
Take out a gold loan from Shriram City Union Finance for the best interest rates and no hidden fees if you need working capital for any agricultural activities but are short on cash.
Length of Farmers’ Gold Loan
These loans often have terms of up to one year. However, depending on the banking institution, it might be between three and thirty-six months.
Specifications of the Loan
- Low-interest rates compared to other sources of funding.
- 18-carat gold purity minimum.
- In this instance, the documentation procedure is straightforward and uncomplicated.
- Disbursement of the mortgage amount is quick and straightforward, making the process simple.
- It offers alternatives for lump money and EMI repayment in a handy and flexible repayment schedule.
- The bank vaults where the gold is committed remain secure.
- Many financial organizations provide a mortgage renewal option.
Eligibility requirements
The agriculture gold loan option is only available to a few people. They are listed as follows:
- The minimum age requirement is 18 years, and the maximum age at maturity cannot exceed 60 years.
- Gold to be pledged must be legally owned.
The necessary paperwork for the process
The group of documents includes:
- The application form was correctly filled out.
- Your voter ID, passport, Aadhaar card, driver’s license, or Pan card are all acceptable forms of identification.
- Your voter ID, passport, Aadhaar card, or driver’s license can all be used as proof of address.
- In the applicant’s name, evidence of an agricultural area.
- 2 most current images of the applicant.
- Depending on the financial institution, different eligibility and documentation requirements may apply to the application process. However, the procedure above is a widely used standard.
- You can apply for an agriculture pledge gem loan with Shriram City Union Finance to have a flexible and hassle-free process with low documentation requirements.
How to apply for an agricultural gold loan?
Request for an agriculture gold loan Comparing lenders is the first step. Then decide on the option that best meets your needs. You have the opportunity to apply offline or online. You will receive an application form that needs to be correctly filled out.
Submission: After completing the application, you will provide the lender with your gold jewelry or coins as security. Going in person to the branch or institution is the only offline option.
Evaluation: After receiving your jewelry, the lender will conduct an internal gold evaluation process to determine the value of the gold by current market value. This determines the quantity of the gold loan. The amount of lending will increase as the value rises. The calculator for gold loan eligibility is also utilized for this.
Documentation procedure: Following examination, you must provide the lender with a specific amount of documents. To move forward, this step is required.
Disbursement and authentication: A candidate must meet specific lender requirements. They have to do with the purity of the promised jewelry or age requirements. With valid documentation and a low CIBIL score, candidates can apply for a gold loan for farmers. The lender begins disbursing the loan amount into your account after authentication.
Repayment: Given that we are discussing the entire process, the last stage is the repayment of the money. In addition to freedom, you can pick mainly from 4 different payment options. Which are:
EMI stands for a monthly installment payment that includes both principal and interest.
Paying the entire balance in one go after your term is known as the “bullet repayment technique.”
Advance interest payment: The total gold loan interest rate amount is paid beforehand, and the remaining principal is paid after your tenure.
Regular interval interest payment: A recurring monthly, quarterly, semi-annual, or annual interest payment. When your tenure is over, the principal is returned.
Larger jewelry pieces, as opposed to small ones, provide a better loan amount per gram of gold, up to 75% of the gold’s value. Gold jewelry with an 18 or 20-carat purity rating is less pure. They, therefore, provide a poor deal. Jewelry with a hallmark lowers the cost of a loan and offers a low processing fee. These are some advice for raising your average price per gram of gold.