Canara Bank Agriculture Gold Loan Interest Rate 2021: Details You Must Know

Canara Bank Agriculture Gold Loan Interest Rate 2021: Details You Must Know

Gold loans are among the most sought-after types of financing in India, more so among farmers who look for immediate money to fulfill agricultural needs. As one of the most reputed banks in India, Canara Bank has specially designed gold loan schemes that cater to the requirements of agricultural loans. This post will give you all the information about Canara Bank Agriculture Gold Loan Interest Rate 2021, and we will also tell you why it is a perfect financial solution for farmers.

Agriculture Gold Loan: What Is It?

A gold agriculture loan is a secured loan that requires you to offer your gold ornaments or jewelry as security in exchange for faster access to the funds you need. The loans are for farmers to fulfill agricultural costs like buying seeds, fertilizers, and equipment or other agriculture costs.

Canara Bank Agriculture Gold Loan: Canara Bank offers competitive interest rates and flexible repayment options that make it a popular option among farmers across India.

Here are the features of the Canara Bank Agriculture Gold Loan

• Goal-specific –Meant for farmers to fulfill cash requirements for farming.
• Fast Loan Disbursal: Loans are disbursed quickly against pledged gold to meet financial needs.
• Lower rates than what they could offer you with a personal loan or some other vehicle for your financing.
• Different repayment options: Bullet repayment or Down payment/Up payment
• Loan-to-Value (LTV) Ratio – Loans in gold could be taken to the extent of 75% of the market value of gold.

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Interest Rate of Canara Bank Agriculture Gold Loan in 2021

In respect of Canara Bank agriculture gold loans 2021, the interest rate varied based on the loan amount, tenure, and prevailing policies. Take a look at a digest of the charges:

1. Initial Rate of Interest: 7.00% p.a. (The minimum rate of interest would change according to market conditions and RBI directions.)
2. Processing Fees: Very less processing fees (usually 0.25% to 0.50% of the loan amount)
3. Loan The term: up to 12 months (may be extended)

The advantage for the farmers accessing this type of loan is the lower rates that are offered for agricultural terms compared to non-agricultural gold loans.

Who can apply for a Canara Bank Agriculture Gold Loan?

Eligibility for this loan is as follows:

• Occupation: Applicant must be a farmer or engaged in farming.
• Quality of Gold: The gold that is pledged must be 18 carats and above.
• Documents: ID (and address proof) (land ownership documents or any certificate of the agricultural activity).
• Range of IRD: Based on the borrower’s income generated from farming or allied activities.

Application Before you consider getting a gold loan at Canara Bank, check the gold loan requirements of your state at the Canara Bank gold loan center.

It’s as simple to apply for this as it is to apply for any other drives. Here’s how you can apply:

1. Go to a branch – Walk into your nearest Canara Bank with your gold ornaments along with the necessary documents.
2. Gold Assessment: The officials from the bank will inspect the gold and check its purity.
3. Loan approval: Based on the assessment, a loan amount will be approved.
4. Loan Disbursement: The approved amount is deposited directly into your bank account.

Advantages of Preferring Canara Bank Agri Gold Loan

• Subsidized Interest Rates: These loans are generally subsidized since they are for agricultural purposes.
• Easy Process: It requires minimal paperwork and money will be disbursed shortly.
• Security: The loan is backed by gold stored in bank lockers for the entire duration.
• Flexibility — The borrower can pay back their loan in a multitude of ways depending on their financial situation.

Things to consider before applying

• Repayment plan: Make sure you have a repayment plan in place to avoid penalties, fines, or additional fees.
• LTV: Know how much gold you can borrow against (Maximum loan against gold can be availed)
• The tenor of Loan: Pick a tenor that matches your harvest pattern or the ability to pay back.

Conclusion

Canara Bank Agricultural Gold Loan The Canara Bank Agriculture Gold Loan is a popular and cost-effective loan secured by farmers to help them cover expenses when they need to invest money in agriculture. Incredibly competitive rates and the fewest requirements for farmers have made it a savior for most of 2021. Canara Bank gold loan may be the answer you have been seeking for financing your agri-needs securely and simply.

This loan makes sure that funding does not act as a barrier between you and your farming ambitions whether you buy seeds, fertilizers, or equipment with that. For more information or to apply for the loan head to your nearest Canara Bank branch today!