Agriculture Loan
Agriculture Loan: Interest Rates, Types and Documents

The Indian Government and several financial institutions in our country provide agriculture loans to assist farmers in getting the required funds and help them in demanding times. Willing applicants can opt for an agriculture loan by pledging their gold assets. 

Continue reading to know the types of agriculture loans, agriculture gold loan interest rates, and more. 

Why Do Farmers Opt for Agriculture Loans?

A farmer might apply for an agriculture loan for the following purposes: 

  • Land acquisition 
  • Fish farming 
  • Buying farm machinery 
  • Being in line with the seasonal farming needs 
  • Building a dairy 
  • Everyday operations 
  • Need for capital, and more 

What are the types of agriculture loans? 

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Here are the various types of agriculture loans: 

  • Agricultural gold loans 

Farmers can opt for this type of loan by pledging their gold ornaments and jewellery. They can cover any expenses, from crop production expenses to buying machinery with this credit facility. They come with low agriculture gold loan interest rates and flexible repayment terms. 

  • Horticulture loans 

Farmers who wish to establish vegetable farms can apply for a horticulture loan to cover the expenses of running the activities of a horticulture farm, such as erecting fences and cutting down wild trees. 

  • Forestry loans

Applying for a forestry loan allows farmers to cover the expenses of activities, such as converting barren land into farmable land, destroying wild forests, etc. 

What are the documents required to opt for an agriculture gold loan in India?

Willing borrowers should keep these documents handy while applying for a gold loan in India: 

  • Identity proof 
  • PAN card
  • Defence ID card
  • Aadhaar card
  • Driving license
  • Passport
  • Voter ID card
  • Photo identity card issued by the State or Central Government 


  • Address proof 
  • Aadhaar card
  • Ration card
  • Passport
  • Voter ID card
  • Bank account statement
  • Utility bills, such as telephone or electricity bill
  • Letter from any authorized person

What are the steps to opt for an agriculture loan in India?

Willing applicants can follow these simple steps to apply for an agriculture loan in India: 

Step 1: Visit the official website of a reputed financial institution offering agriculture gold loan.

Step 2: Locate the gold loan application form and fill up all the details as required by the lending institution. 

Step 3: Enter the loan amount that you wish to borrow. 

Step 4: Provide your PAN details, 10-digit mobile number and area pin code. 

Step 5: Click on the “Submit Details” button. 

After completing these steps, a representative from the lending institution will get in touch with you and guide you through the next steps. 

What are the eligibility criteria to opt for a gold loan in India?

In order to get the best terms on an agriculture loan, applicants have to fulfil the following eligibility parameters: 

  • An applicant must be between 21 to 70 years of age 
  • Salaried as well as self-employed employees can opt for a gold loan 
  • A gold loan is provided to traders, farmers, businessmen, etc. 
  • The gold asset that will be pledged should have a purity of 22K 
  • The applicant must have a decent financial history in order to get a high LTV

Borrowers can easily meet all of their significant financial obligations by pledging their gold and gaining access to fast credit without the need for extensive paperwork or a drawn-out loan approval process. In this context, one must also ensure to make timely EMI payments in order to keep their gold assets safe throughout the repayment tenure while enjoying a hassle-free borrowing experience. Making timely EMI payments also enhances an individual’s credit score, making them eligible for future loans. 

A gold loan has thus become one of the most straightforward yet advantageous financial solutions in India; thanks to such rewarding qualities, such as low agriculture gold loan interest rates and a quick application process.

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