Capital Small Finance Bank Agriculture Gold Loan

Capital Small Finance Bank Agriculture Gold Loan Features & Benefits

Capital Local Area Bank, founded in 2000, was largely active in Punjab’s Jalandhar, Kapurthala, and Hoshiarpur districts until 2013. The bank extended its operations in Ludhiana and Amritsar after 2013. The bank’s 76 branches were operational as of June 2016.

After receiving in-principle approval in September 2016, the RBI gave Capital Local Area Bank a licence under Section 22(1) of the Banking Regulation Act, 1949, and it began operations on April 24, 2016, as India’s first small finance bank under the new brand name of Capital Small Finance Bank. Capital Small Finance Bank added 10 additional branches to the existing 49 of Capital Local Area Bank on the day of its founding. The bank now has 158 operating branches as of March 2021.

The bank obtained 43 crores in June 2019 from Amicus Capital and 84 crores in November when Oman India Joint Investment Fund purchased a 10% stake in the bank.

Capital Small Finance Bank Agriculture Gold Loan Calculator

The Capital Small Finance Bank Agriculture Gold Loan allows farmers to receive cash in exchange for insured gold, which they may use to help with agricultural planting and harvesting. However, it’s also critical to understand the loan’s terms, which can be done with the help of an online EMI calculator, which shows the monthly EMI charges for the required amount. Some of the factors that determine EMI estimations are as follows:

• The value of the jewellery you may put up as collateral with the bank determines the amount of a gold loan you may be qualified for. Banks often provide a jewel loan per gramme of gold, which varies based on the purity of the gold and the loan-to-value ratio available.
• On higher sums of money, banks provide lower interest rates. The Capital Small Finance Bank offers loans ranging from Rs. 5,000 to Rs. 20 lakh.
• Customers with a Capital Small Finance Bank account are entitled to special rates, benefits, and fees. Customers who have previously paid their gold loans on time are eligible for low-interest loans from Capital Small Finance Bank.
• Shorter-term gold loans have higher interest rates, whereas longer-term gold loans have lower interest rates. The Capital Small Finance Bank offers gold loans for six to twelve months.
• For gold jewellery, the Reserve Bank of India has set a maximum loan-to-value (LTV) ratio of 75 per cent. On the other side, the Capital Small Finance Bank offers loans with lower LTVs. The interest rate on a per cent loan with a smaller LTV will be lower than one with a higher LTV. Based on the net weight of gold in your jewellery, the Capital Small Finance Bank provides a maximum LTV of 75%.
• One of the Capital Small Finance Bank’s primary lending criterion is gold loans for agricultural uses, which are offered at low concessional rates from all institutions, including the Capital Small Finance Bank.

Capital Small Finance Bank Agriculture Gold Loan Eligibility

There are certain requirements that are required to be fulfilled to avail a agriculture gold loan:

• The applicant should have attained at least 18 years of age
• The individual should have his own gold ornaments or articles that can be pledged
• The gold to be pledged should be 18 carats or above
• The applicant should have a decent CIBIL score

Documents Required for Capital Small Finance Bank Agriculture Gold Loan

Capital Small Finance Bank Agriculture Gold Loan Rate Per Gram by Gold Purity

The Capital Small Finance Bank is a financial organisation based in India. The Capital Small Finance Bank’s Agriculture Gold Loans are a one-of-a-kind programme open to both public and private firms. Agriculture has been practised by the vast majority of India’s inhabitants from ancient times, making it a very agriculturally intensive country.

Agriculture gold bank loans carry an annual interest rate of 7%, which rises over time. Interest rates for agriculture gold loans, as well as eligibility, repayment terms, 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

Capital Small Finance Bank Agriculture Gold Loan Interest Rates Per Gram

The cost of borrowing for gold loans from the Capital Small Finance Bank Agriculture Gold Loan is as follows:

Historical Gold Loan Rates Per Gram

Because of India’s imperial heritage and abundance of natural resources, our soil can sustain a wide variety of plants and flowers. Diverse geographical factors have an influence on the development and long-term survival of various crops and plants in different sections of the country.

Despite the fact that farming is the country’s most common activity, the bulk of it is for profit.

Using current methods, commercial farming is not practised on a big enough scale in the country. The market provides a number of agriculture-specific gold loans, such as the Capital Small Finance Bank Agriculture Gold Loan, to address this issue.

Major Banks Agriculture Gold Loan Per Gram Rate Comparison 

Tips to Get The Highest Agriculture Gold Loan Amount from Capital Small Finance Bank 

Any farmer may acquire an agriculture gold loan from one of the many lenders on the market, but applicants must meet the following criteria to receive the best deal and avoid fraud and other financial problems.

• Because a gold loan is secured, the loan amount is determined by the value of the gold you put up as collateral. Banks and non-bank financial organisations (NBFCs) cannot lend more than 75% of the value of gold, according to the Reserve Bank of India.
• These loans are typically awarded within a few hours of receiving the loan application since they need minimum paperwork. As a consequence, a gold loan may be a viable option for resolving financial issues.
• Gold loans are short-term loans with periods ranging from seven to three years and repayment options ranging from seven to three years. In addition to the usual EMI repayment option, borrowers can choose to return the whole interest amount now and the principal component later at the end of the loan period.
• The interest rate on a gold loan is determined by the lender’s risk assessment, which can range from 9.24 per cent to 26 per cent each year. The interest rate on gold loans is influenced by the loan-to-value (LTV) ratio, loan period, loan amount, and other factors.
• Lenders will demand processing fees and expenditures once you’ve completed your gold loan application. It typically varies between 0% and 2% of the overall loan amount. A one-time fee may be charged by some lenders. This cost should be explored before filing your loan application since it may be taken into account if you are seeking a large-ticket loan.