KCC vs gold loan for quick crop money at sowing time, which is cheaper?

For regular crop money the KCC is almost always cheaper than a gold loan because of the interest subvention and prompt repayment incentive, which bring the effective rate on up to Rs 3 lakh to around 4 percent for timely repayers. A gold loan, even an agriculture gold loan, usually carries a higher rate and you risk your jewellery if you cannot repay. The advantage of a gold loan is speed: it can be sanctioned in a day against your gold, while a first time KCC takes a week or two for land verification. So the sensible approach is to get a KCC set up in advance, before the season, so the limit is ready to draw the moment you need it. Use a gold loan only as a short bridge if KCC is not yet in place and you cannot wait. Once your KCC is active, draw from it for crops and keep the gold for a real emergency. Rates change, so compare the current KCC effective rate and the gold loan rate at your bank before deciding.