I need money fast for seeds and fertiliser. Bank KCC is slow. Should I take an agri gold loan against my wife's jewellery instead?
Is an agri gold loan cheaper than a KCC for quick money during sowing?
KKishore Reddy4mo ago · 164 views
6 Answers
🌾Farmer.in Krishi TeamExpert ✓4mo ago
An agri gold loan can be faster to get than a fresh KCC, but for repeat seasonal credit a KCC is usually cheaper if you qualify for interest subvention. An agri gold loan is a loan against gold where you declare the purpose as agriculture; it is quick because the gold is the security, and some banks price it like a crop loan with subvention up to the eligible ceiling. A KCC gives you a revolving limit at the subvented rate around 4 percent for prompt payers up to Rs 3 lakh, which is hard for a gold loan to beat over many seasons. The catch is the time to set up a KCC and the paperwork. A reasonable approach is to use a gold loan only as a bridge for urgent input money and get the KCC sanctioned for ongoing use. Compare the actual interest, processing charges and the loan-to-value on gold with your bank before deciding; this is general information, not personal financial advice.
KKishore Reddy4mo ago
Maine sowing ke time gold loan liya tha kyunki KCC banne me der thi. Wo bridge ki tarah kaam aaya, baad me KCC se chala liya. Gold loan me LTV aur processing charge pehle pooch lena, har bank alag hai.
SSrinivas Rao4mo ago
A pitfall with the agri gold loan is the repayment period, mine was shorter and I had to renew, which added cost. For repeated seasonal money the KCC at the subvented rate worked out cheaper over the years. Use gold only as a quick bridge if KCC is delayed.
VVenkat Rao4mo ago
Ask the bank to book the gold loan as an agriculture purpose loan, because some branches default it to a higher rate ornament loan. I had to insist it be tagged as agri to get the cheaper pricing. Compare the actual rate and charges, this is general info not advice.
NNaga Raju4mo ago
Gold loan me ek baat dhyan rakho, daam girne par bank top up maang sakta hai ya gold nilaam karne ki dhamki de sakta hai agar tum samay par renew na karo. Maine isliye ise sirf bridge ki tarah liya aur fasal bechte hi chukta kar diya. Apni patni ke gehne girvi rakhne se pehle ghar me baat kar lena, kyunki repay na hone par nuksan bada hota hai.
SSuresh Babu4mo ago
For me the deciding factor was that the KCC gives a revolving limit I can use every season once it is set up, while the gold loan had to be closed and taken again each time with fresh charges. So I treated the one time delay of getting the KCC as worth it. If you are in a real hurry this season, use gold now but start the KCC paperwork the same week so next year you are not stuck again. This is general information, not personal financial advice.