Bank of Baroda Agriculture Gold Loan

Bank of Baroda Agriculture Gold Loan Features & Benefits

On September 17, 2018, the Indian government announced Bank of Baroda, Vijaya Bank, and Dena Bank to become India’s second-largest lenders. With a combined business of Rs14.82 trillion (short scale), the merger is its first three-way consolidation of banks, making it the country’s third-largest bank behind State Bank of India (SBI) and Private Bank. On July 20, 1908, the bank was created in the Princely State of Baroda, Gujarat, by Maharaja Sayajirao Gaekwad III, Maharaja of Baroda.

On July 19, 1969, the Indian government nationalised the bank and 13 other major commercial banks in the country; the bank was declared a profit-making public sector entity.

Bank of Baroda Agriculture Gold Loan is a loan specially designed to help the farmers of our country provide them with the fund to undertake the expenses of growing and harvesting crops on their land and improve their yield by employing new and more efficient machinery with the secured funds.

Bank of Baroda Agriculture Gold Loan Calculator

Like all gold loans, the Bank of Baroda Agriculture Gold Loan also requires recipients to pay EMIs monthly or at a selected time interval. Therefore, employing an online EMI Calculator before applying for the loan is a reasonable and healthy step to under all the expenses linked to the loan. Some of the concerns of an EMI calculator are as follows:

• Bank of Baroda Agriculture Gold Loan is a secured loan made by banks and non-bank financial companies (NBFCs) against the applicant’s own gold, which is maintained as collateral or security with the lender. 
• Financial organisations provide gold loans by using the borrower’s own gold jewellery, coins, or ornaments as collateral or security, which is returned to the borrower upon timely and complete repayment of the loan. A loan secured by gold jewellery is often issued for short to medium-term periods. 

• To apply for this loan with one of India’s main banks, an individual must own gold and be at least 18 years old, with a maximum age of 70 years.
• Most banks and non-banking financial companies (NBFCs) provide gold loans at reasonable interest rates in India, with low EMIs and flexible repayment choices.

Bank of Baroda Agriculture Gold Loan Eligibility

Documents Required for Bank of Baroda Agriculture Gold Loan

Bank of Baroda Agriculture Gold Loan Rate Per Gram by Gold Purity

Bank of Baroda Agriculture Gold Loan is a specialised program run usually by governmental and private banks alike. India is an agriculture intensive country as agriculture is being practised by a major part of the population since ancient times.

Agriculture gold loans issued by banking institutions start at a rate of 7.00 per cent per year and go up from there. Interest rates for agriculture gold loans and eligibility, repayment terms, and fees and penalties will vary from bank to bank. 

The above table shows the method by which Banks will calculate your per gram gold loan for gold of varying purity.

• Gold loan per gram offer for 22-carat jewelry will be between ₹ 4,620 to ₹ 4,956
• Gold loan per gram offer for 20-carat jewelry will be between ₹ 3,795 to ₹ 4,178
• Gold loan per gram offer for 18-carat jewelry will be between ₹ 3,460 to ₹ 3,784

Bank of Baroda Agriculture Gold Loan Interest Rates Per Gram

The value of gold loan rate of interested provided to the customers under  Bank of Baroda  Agriculture Gold Loan is represented as under:

Historical Gold Loan Rates Per Gram

India’s colonial past and the richness of natural resources have made our country’s land grow all kinds of plants and vegetation. Different parts have their independent geographical features that support and boost different varieties of crops and plants. 

Even though farming is a significant occupation in the country, it is mostly subsistence farming by virtue. 

The country’s commercial farming is not practised with the use of modern technology at a sufficient scale. Various gold loans focused on agriculture like the Bank of Baroda  Agriculture Gold Loan are present in the market to remedy this. 

Major Banks Agriculture Gold Loan Per Gram Rate Comparison 

A large number of financial institutions in India are state-owned and supported due to the mixed economic system of India. A comparison of some banks, both public and private, are as under:

Tips to Get The Highest Agriculture Gold Loan Amount from Bank of Baroda

Agriculture gold loans as a debt have certain advantages over common Gold Loans. These can be highlighted as under: 

• Easy Loan Process: Simple and hassle-free loan application and distribution of funds.
• Low-Interest Rates: When compared to other types of loans, interest rates can be as low as 7%.
• Repayment Schedule that is Convenient: You have the option of paying the entire amount in one lump sum or through EMIs.
• Minimal Documentation: The documentation for a gold loan for agriculture is pretty straightforward.
• Security for collateral: Gold is stored securely in bank vaults and is returned to the consumer after the loan is repaid in full.
• Loan Renewal Option: Some banks also provide the option of renewing a loan.

Any agriculturist can get an agriculture gold loan from various loan providers in the market, but still, to get the best value and to protect themselves from fraud and other financial hassles, it is important that the applicants must keep an eye on these points:

• Loan amount: Because a gold loan is secured, the loan amount is based on the value of the gold you deposit as security. The Reserve Bank of India has prohibited banks and non-bank financial companies (NBFCs) from providing gold loans of more than 75% of the gold’s value.
• Interest rates: Because the lender’s risk assessment sets the interest rate for a gold loan, it can range from 9.24 per cent to 26 per cent per annum. Lenders use the LTV ratio, loan duration, loan amount, and other parameters to establish the interest rate on gold loans.
• Processing fees: Processing fees are the costs that lenders incur while processing your gold loan application. It usually ranges from 0% to 2% of the total loan amount. Some lenders also charge a flat fee. Check this fee before submitting your loan application since it might be a considerable sum in the event of a large-ticket loan.
• The time it takes for a loan to be disbursed: These loans require little paperwork and are usually disbursed within a few hours of submitting the loan application. This aspect makes a gold loan a wise option for dealing with financial difficulties.
• Duration and repayment of the loan: Gold loans are short-term loans with payback terms ranging from 7 days to 3 years and offer various repayment choices. Borrowers can opt to return the entire interest amount now and the principle component later after the loan term, in addition to the traditional EMI repayment method.
• Prepayment/foreclosure fees: Most lenders do not impose a fee if you early pay off your gold loan. However, specific lenders may charge up to 2.25 per cent of the outstanding amount if the loan is closed before the term is completed.
• Purity and value of gold pledged: One of the essential elements in determining the loan amount is the purity and kind of gold promised. Therefore, any gold adornment, jewellery, or coins may usually be used as collateral.

Bank of Baroda Agriculture Gold Loan FAQs

✅ What is the interest rate for Bank of Baroda agriculture gold loan?

Bank of Baroda Agricultural Gold Loans starts at an interest rate of 7% per annum. For the Bank of Baroda Agricultural Gold Loan, you need agricultural land and cultivation along with essential documents such as an Aadhaar Card/PAN Card.

✅ What is a Bank of Baroda Agri gold loan?

Bank of Baroda Agri Gold Loan is a loan against gold, particularly for farmers, available for agricultural purposes. The loan amount disbursed under the Bank of Baroda Agri gold loan can only be used for farming and allied activities. Therefore, one has to present the proof of agricultural land and cultivation and the basic documents required for the Bank of Baroda Agri Gold Loan.

✅ How to pay Bank of Baroda Agriculture Gold Loan Online?

You have an option to pay Bank of Baroda Agriculture online through online repayment applications.

Read More: Best Methods of Repaying Gold Loan