The Union Krishi Kamdhenu Gold Loan Scheme enables farmers to achieve their agricultural and allied activity goals by leveraging the value of idle gold. This specialized financial product offers support against the security of gold ornaments or coins, ensuring farming becomes hassle-free and emergency-proof.
Purpose of the Scheme
The loan is designed to cater to:
Allied Agricultural Activities:
Dairy, poultry, fisheries, piggery, sheep rearing, etc.
Investment Credit:
Acquisition of farm machinery, land development, irrigation, horticulture, and transport of agricultural produce.
Farming Activities:
Farmers cultivating their own or leased land or engaged in crop cultivation.
Other Permitted Activities:
Activities classified under agriculture as per RBI/GOI/NABARD guidelines.
Note: Loans are based on the activity and beneficiary profile, not the type of collateral.
Eligibility Criteria
Gold Security:
Loans are offered against gold ornaments or coins (maximum 50 grams per customer).
Gold loans for domestic jewelry manufacturers/exporters are excluded.
Documentation:
Valid ID proof (Aadhaar, PAN, Passport, etc.) is mandatory to comply with KYC/AML norms.
Farmers and Agri Entrepreneurs:
Owner cultivators, tenant farmers, oral lessees, sharecroppers, and those engaged in allied agricultural activities.
Repayment of Non-Institutional Loans:
Borrowers must declare the purpose of using gold as collateral for repaying high-interest loans from non-institutional lenders.
Implementation: Available through rural, semi-urban, and select urban branches.
Loan Amount
Minimum Amount: Not specified.
Maximum Amount: ₹25.00 lakhs.
Hallmarked Gold Restriction: For 20-karat hallmarked gold, the loan amount is limited to ₹5.00 lakhs per borrower.
Loan Assessment
The loan amount is determined based on the following, with the lowest value being sanctioned:
Applicant's requested amount or self-declaration.
70% of the appraised gold value (22-karat fineness).
Per gram advance rate set by the bank.
Credit requirements for agriculture and allied activities.
Note:
Specially minted gold coins (24 karat) sold by banks are treated as 22-karat ornaments for loan evaluation.
An additional ₹50 per gram can be offered for hallmarked 22-karat gold.
Margins and Processing Fees
Margin
30% margin for loans with a tenure of 12 months.
Processing Charges
Loan AmountChargesUp to ₹0.25 lakhsNIL₹0.25 lakhs to ₹1.00 lakh₹100 + GST₹1.00 lakh to ₹5.00 lakhs₹250 + GST₹5.00 lakhs to ₹10.00 lakhs₹400 + GST
Subject to periodic revision.
Repayment Terms
Maximum Tenure: 12 months.
Repayment can be made as a single bullet payment or in parts within 12 months, including accrued interest.
Interest Payment
Interest is payable semi-annually at the end of September and March. Any pending interest is added on the due date.
This scheme empowers farmers by transforming their gold into an accessible financial tool, enabling agricultural growth and financial freedom.
