Gold Loans · Cluster · Reviewed 2026-04-25
Agricultural Gold Loan: PSL Rate, Subsidy, Eligibility
Agricultural gold loans qualify under Priority Sector Lending (PSL); rates start from 7% with interest subvention up to 3% (effectively 4%). Land record proof + Kisan Credit Card linkage may be required. PSU banks dominate this segment.
Rate snapshot
| Lender | Min % | Max % |
|---|---|---|
| State Bank of India | 8.75 | 10.10 |
| HDFC Bank | 9.20 | 17.90 |
| ICICI Bank | 9.25 | 18.00 |
| Federal Bank | 9.49 | 13.00 |
Step-by-step
- Compare lender rates side-by-side. Use the rate board to shortlist 3-4 lenders matching your profile and tenure preference.
- Run an eligibility check. Match income, CIBIL, vintage, and existing-EMI ratios against each lender's published cut-offs.
- Collect KYC + income documents. PAN, Aadhaar, salary slips (3 months) or ITR (2 years for self-employed), bank statements (6 months).
- Submit application + soft-pull. Most digital lenders use soft credit pull at the offer stage so your CIBIL is unaffected.
- Sanction letter + acceptance. Read the sanction letter carefully — focus on processing fee, foreclosure terms, and reset clauses.
- Disbursal. Funds typically credited within 24-72 hours of acceptance for unsecured products.
FAQ
Who is eligible for agricultural gold loan?
Farmers with land records, agriculturists, and allied-activity practitioners (dairy, poultry).
What is the interest-subvention scheme?
Govt of India provides 3% subvention on prompt repayment, bringing effective rate to ~4-5% for short-term agri credit up to ₹3 lakh.
Is KCC required?
Often yes — Kisan Credit Card is a common channel; standalone agri-gold-loan also available at PSU banks.
What's the LTV cap?
75% as per RBI; some PSU banks go to 80% under PSL relaxation.
Can urban borrowers access agri gold loan?
Only if engaged in agri-allied activity with documented proof.
What documents are needed?
Aadhaar + PAN + land record (7/12 / RTC / patta) + KCC if available.
Is the loan repayable at harvest?
Yes — bullet repayment aligned with crop cycle is standard.
Does subvention apply if I prepay early?
Yes — prompt-repayment subvention applies on closure within tenure.
Related
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