9. Agri Gold- Term Loan (Allied Activities)

This can be granted to any farmer engaged in agriculture, cultivating own land/or leased land or engaged in allied activities like Dairy, Poultry, Piggery, Sheep,Fisheries etc. as well as investment credit activities permitted to be classified under agriculture as per RBI/GOI/NABARD guidelines including farm mechanization, land development, irrigation, horticulture, floriculture, farm house, transportation of agriculture produce etc. The benefit of interest subvention is not eligible to such term loans against Gold.

Application and Appraisal: The Applicant farmers should submit the revised application, appraisal-cum-arrangement letter along with a prescribed Gold ornaments take delivery letter.

Eligibility: Any person engaged in agriculture or allied activities requiring investment credit as permitted by RBI to be classified under agriculture.

Advance Value: As fixed by the Bank from time to time

Quantum of Loan: The amount of loan that can be granted against the security of Gold ornaments should not be higher than the advance value of the Gold ornaments pledged with a maximum limit of Rs.25 Lakhs.

Security: Gold ornaments Pledged

Repayment

The repayment period of the loan is fixed so as to coincide the harvesting and marketing season / generation of income from the activity, allowing 2 to 3 months time after harvesting to market the produce and realize the proceeds. Maximum of 3 years, with a condition that at least 10% of the principal and the interest accrued has to be serviced during the first and second years compulsorily. Entire loan should be repaid within three years.The outstanding in the loan account should not exceed the advance value of the ornaments at any point of time during the loan period.

Rate of Interest

Loan Slab	Interest Rate (% p.a)
Up to Rs.25 Lakhs	1.75% above Base Rate.

Processing Fee 

• As applicable to Agricultural Gold loan.
  
• Prevailing rate Rs.4 per Thousand minimum Rs.30 Max. Rs.250

Appraisal Charges

• To be paid to the appraiser.
• Rs.1/1000 Min Rs.50 or part Max Rs.300/-