SBI Agricultural Gold Loan to enable farmers to meet their short-term agricultural credit needs. This is one of the easiest and convenient loan for farmers when they are in emergency needs of fund. An existing account holder can avail this loan within an hour producing land tax receipt along with passbook and gold.
Eligibility for SBI Agricultural Gold Loan
Any person engaged in agriculture or allied activities as well as persons engaged in activities permitted by RBI to be classified under agriculture.
Type of Loan
Agricultural Cash Credit / Over draft. Demand Loan / Term loan.
Loan Margin Money
30% on price of gold advised by LHO. In deserving cases BM has discretion to reduce to 25% margin.
Loan Interest Rate
Interest should be charged as applicable to agricultural advances.
As applicable to Agriculture Advances.
Loan Repayment Method
a. Cash Credit / Overdraft: Like KCC, it is a running account for a period of 3 years, subject to review at annual intervals.
b. Demand Loan / Term Loan: the repayment period of the loan should be fixed so as to coincide with the harvesting and marketing season. The total period will not generally exceed one year from the disbursement of the loan in the case of short-term loan / production credit and 36 months in other cases.
Purity of gold can be ascertained by using the following methods:
a) Touch stone method
b) Nitric Acid method
c) Specific gravity method.