SBI Multi Purpose Agri Gold Loan Scheme

THE STATE BANK OF INDIA (SBI) MULTI-PURPOSE AGRI GOLD LOAN SCHEME

The State Bank of India has been a market leader and a pioneer in the field of agriculture financing in the country with a portfolio of over Rs. 1,20,000 crores. It is in the agricultural advances. Also, the State Bank of India covers around 1.1 lakh farmers with their families. The State Bank of India caters to the farmer's and the agriculturist's needs and it has a vast network of around 10,505 rural and urban branches. The interest involved in a gold loan is calculated by a gold loan interest rate calculator.

• Purpose of the loan The purpose of this multi-purpose loan is to meet either the short term investments or the investment credit needs of: - 

1. The farmers who are engaged in the agricultural field and who are cultivating their own land or the leased land. The farmers who are in the cultivation of crops are also involved in this.

2. The farmers who are involved in allied activities such as dairy, piggery, poultry, fishery, sheep, etc.

3. The farmers and the entrepreneurs need some investment credit for undertaking land development, for acquiring farm machinery, horticulture, transportation of agricultural produce, irrigational facilities, etc. 

4. Also, all the farming activities have the permission to be classified under the agricultural field according to the guidelines laid down by the Reserve Bank of India/ GoI/ NABARD. 

• Features of this SBI multi-purpose agricultural gold loan The features of the multi-purpose loan under the agricultural scheme are as under: 

1. Type of facility- DL ( there is no gold loan on the gold bars and up to 50gms of the bank gold coins are allowed. 

2. Interest rate- This is MCLR rate + 1.25% additional benefits. 

3. Subvention- It is not available

4. Quantum of loans- The basis of the advance value of the ornaments of gold per gram of the different purity levels. ( 18 carats as per 24/22/20/18 carats)

5. Concession- It is upto 3 lakhs MCLR +85 bps, 3-5 lakhs MCLR + 95 bps. 

6. Repayment- The tenure of repayment of this loan is 12 months from the date of the disbursement of this multi-purpose loan. 

7. Security-  As a gold loan is a secured loan, the security is the gold ornaments of the borrower. 

• Eligibility of a multi-purpose agriculture loan scheme by the State Bank of India The individuals who are eligible to take up a gold loan under the State Bank of India multi-purpose gold loan scheme can be summed up in the following points: -

1. All the farmers and the individuals who are owner cultivators and the agricultural entrepreneurs.  

2. The tenant farmers are oral lessees and sharecroppers. 

3. The person who is engaged in any kind of allied activities or agricultural activities and wants to repay the loans which are availed from the non-institutional money lenders. 

4. The individuals who are engaged in the activities that are permitted by the Reserve Bank of India are to be classified under agriculture. 

5. Also, a self-declaration is to be made by the applicant that he/she is engaged in agricultural activities and allied activities.

6. The loan has to be availed against the gold ornaments or the gold articles that are pledged by the borrower. The interest rate is minimal as compared to the other loans.

7. There has to be evidence of the landholding record and the agricultural activities. 

• The processing or the inspection charges The processing or the inspection charges are as under-

1. For the amount up to Rs. 25,000 - nil.

2. For the amount above Rs. 25,000 and below Rs. 2 lakhs - Rs. 500+ GST.

3. For the amount above Rs. 2 lakhs- 0.30% of the loan limit GST.

CONCLUSION

A lot of gold loans come with interesting benefits and affordable interest rates for the customers. The gold loan SBI also offers lower interest rates to its customers.

For more update: How To Avail Gold Loan Fast