Kisan Gold Loan - Agricultural Gold Loan Calculator
RBI allows gold loans for agricultural purposes with priority sector status. SBI's agricultural gold loan scheme offers rates as low as 7-8.5% for crop loans and equipment finance. On Rs 3 lakh of gold at current prices, a farmer can borrow Rs 2-2.5 lakh at 7-8% for crop inputs - significantly cheaper than moneylender rates of 24-48%.
Gold Value
₹3,30,000
Loan Amount
₹2,47,500
Monthly Interest
₹1,959
Total Interest
₹23,513
Gold price placeholder: ₹7,200/gram for 24K. RBI allows max 75% LTV for gold loans. Actual rates vary by lender and gold quality assessment.
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Common questions about Kisan Gold Loan - Agricultural Gold Loan Calculator
What is the special gold loan scheme for farmers?
PSU banks (SBI, PNB, Bank of Baroda) offer priority sector gold loans for agricultural purposes at 7-8.5% versus 10-12% for regular gold loans. These loans are for crop loans, land development, and farm equipment. Banks verify agricultural purpose via land records. The maximum loan amount and LTV rules are the same - 75% of gold value.
Can a farmer get interest subvention on gold loan?
Yes. Under the Kisan Credit Card and agricultural loan schemes, farmers can receive 2% interest subvention from the central government, bringing effective rate down to 5-6% on loans up to Rs 3 lakh. To qualify, the farmer must repay on time - the subvention is credited only after timely repayment. Apply through PSU banks or cooperative banks.
Is a gold loan better than selling gold when you need emergency money?
Almost always yes. Selling jewelry loses 15-20% in making charges that you paid upfront. A gold loan at 10-12% on Rs 2 lakh costs Rs 10,000-12,000/year. If you repay in a few months, total interest might be Rs 2,000-4,000. Compare this to permanently losing Rs 25,000-30,000 in making charges by selling. Unless you never intend to buy gold again, borrowing against it makes financial sense.