Punjab National Bank introduced a new scheme, “PNB Swarnim—Agriculture Gold Loan,” that replaced the existing scheme, PNB Sona Krishi Rin Yojana. Agriculture gold loans are financed in the form of demand loans to farmers. Let us know what is to be studied in this article.
- What is the objective and purpose of the scheme
- What is the eligibility?
- How much of a loan can be given?
- What security is to be given for the loan?
- How will the loan be disbursed?
- What is the Rate of Interest?
- What is the repayment period?
- What are the Service Charges?
- Documents required for the loan.
What is the objective of PNB Agriculture Gold Loan?
To enable farmers to quickly meet their agricultural credit needs
To meet the short-term production/investment credit for:
a) Crop production/ allied agriculture activities.
b) Acquiring farm machinery, irrigation equipment, taking up horticulture activity, transport vehicle for transporting of agri. produce etc.
c) Repayment of loans availed from non-institutional lenders.
d) All other agriculture activities which are permitted to be classified under agriculture as per RBI/GoI/NABARD guidelines.
What is the eligibility?
- All farmers: Individuals/ Agri. entrepreneurs including Tenant farmers, Oral lessees and Sharecroppers.
- Any person engaged in any agriculture or allied activities as well as persons engaged in activities permitted by RBI to be classified under agriculture.
- In case loan is to be utilized for repayment of loan availed from non-institutional lenders a self- declaration has to be obtained from the applicant that he/she is engaged in Agri. and allied activities and that the loan availed against the pledge of Gold ornaments is for repayment of higher interest rate loans availed from non –institutional lenders.
- Borrower should be KYC compliant
- Declaration for Agriculture Gold Loan: For sanction of Agriculture gold loan up to the loan limit of Rs 2.00 lakh, a self-declaration must be obtained from the applicant.
- For loans above Rs. 2.00 lakh evidence of land holding record and Agri activities is to be obtained.
How much of a loan can be given?
PNB Swarnim—Agriculture Gold Loan will be financed in the form of a demand loan for a tenor of one year. For a single borrower, the maximum loan amount that can be financed is Rs. 10 lakhs. Further, a maximum of up to 5 loans (5 times) only can be sanctioned to a single borrower.
LTV Demand Loan (Agriculture) is 85% and LTV in case of Demand Loan Agriculture shall not exceed 95% during the entire tenor of the loan.
Loans up to Rs. 2.00 lakh may be sanctioned to applicants on an undertaking basis without insisting copy of land records.
Evidence of land holding record and agriculture activity for loans above Rs. 2.00 lakh is necessary.
What security is to be given for the Agriculture Gold Loan?
The agriculture gold loan can be financed against the pledge of gold/jewellery or ornaments. Bullion, primary gold, and gold coins are not acceptable as security to avail of the PNB Swarnim Agriculture Gold Loan.
How will the loan be disbursed?
The proceeds of the loan are to be credited to the Saving account or KCC account or saving account with another bank of the borrower. No cash disbursement is allowed.
What is the Rate of Interest?
An agricultural gold loan has an interest rate of One-year MCLR + 0.00 spread i.e. 8.50% w.e.f. 01st March 2023 in Punjab National Bank
What is the Repayment Period?
The due date of repayment shall be 12 months from the date of disbursement.
What are the Service Charges?
Upfront Fees
- Up to Loan of Rs. 50,000 – NIL
- Above Rs. 50,000 and up to Rs. 2 lakhs – Rs. 500 + GST i.e. Rs. 590
- Above Rs. 2.00 lakh- 0.30% of the loan amount +GST
Punjab National Bank latest offer: No upfront fee is to be levied on Agriculture Gold Loans upto ₹3.00 lakh till 31-03-2023.
Documentation Charges
There is no documentation charges in this loan.
CIBIL Charges
Rs. 50 + GST per individual
Documents required for the loan
- KYC – PAN, Aadhaar
- Two recent passport size photographs
- Residence proof (Local)
- Certificate by the Jewel Appraiser (Bank will arrange)
- Request form (Declaration) for loans upto Rs. 2.00 lakh (Appendix II)
- Application cum Appraisal form for Agriculture Gold Loan (Appendix III)
- Application cum Letter of Pledge (Appendix IV)
- Status cum Net worth
- Legal Heir Certificate
