Agricultural segment

Farm Finance Made Easy, with SIB Xpress Farm Gold Loan

Get a quick gold loan for farmers, tailored to your agricultural needs. Whether you’re managing unpredictable weather, meeting cultivation expenses, or planning farm investments, SIB Xpress Farm Agricultural Gold Loan helps you access timely finance with ease for crop production, land development, agriculture infrastructure, and other farming requirements.

The features of the SIB Gold Loan for Farmers are as follows.

Wide Agricultural Coverage: Access funds for eligible agricultural purposes, including crop production, land development, allied activities, agriculture infrastructure, and food processing.
Loan Amount up to Rs. 25 Lakh: Get financial support ranging from Rs. 25,000/- to Rs. 25 lakh to meet your farming and agricultural investment needs.
Flexible Repayment Options: Choose between monthly interest servicing or half-yearly interest servicing options based on your cash flow requirements.
Long Repayment Tenure: Enjoy a repayment period of up to 60 months, giving you more time to manage your agricultural finances comfortably.
Simple Loan Process: Apply with minimal documentation and access funds through a straightforward loan process designed for eligible individuals.

Eligibility to avail an agricultural loan against gold jewellery is as below.

The applicant must:

Be 18 years or above.
Own eligible gold jewellery to pledge as collateral.
Pledge gold of 18 karats or above, subject to valuation, credit assessment, and repayment capacity.
Submit valid documents confirming ownership or usage rights of agricultural land or proof of involvement in eligible allied agricultural activities.

How Your Agriculture Gold Loan Amount is Calculated with Loan-to-Value (LTV) ratio
Your loan amount is linked to the market value of your gold. The higher the value of your gold, the higher the loan you can get - up to a defined percentage of its appraised worth (LTV). For example, at 85% LTV, you can borrow up to 85% of your gold’s value.

Our transparent fee structure ensures you know exactly what to expect throughout your loan journey. Check out the various rates and charges related to SIB Gold Loan.

Category	Details
Interest Rates	Check Interest Rates
Other Charges	Handling Charges - Rs. 200/- to Rs. 2,000/- GLREN Charges - Rs. 200/- onwards, up to a maximum of 0.25% of the loan amount Appraiser Charges - Starting from Rs. 150/- per packet Certificate cum gold loan token card missing charges - Rs. 100/- per packet

Here is how to apply for an agriculture loan against gold for your farm needs:

Visit any South Indian Bank branch near you to apply for a gold loan.
Submit your gold jewellery along with valid farm documents.
Share your details online if you want our team to contact you.

Apply Now to Get Started!

VALUATION AND ASSAYING OF GOLD COLLATERAL

The valuation of gold jewellery, ornaments, and coins accepted as collateral shall be based on the reference price corresponding to their actual purity (caratage). For this purpose, the lower of the following two values shall be considered:

The average closing price of gold (for the specific purity) published by the India Bullion and Jewellers Association Ltd. (IBJA) or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) over the preceding 30 days; or
The closing price of gold (for the specific purity) published by IBJA or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) on the preceding day.

METHODOLOGY FOR DETERMINATION OF NET WEIGHT

Purity verification methods include:
- Stone-touch testing
- Nitric acid testing
- Densitometer analysis (mandatory where available)
Gross weight is recorded using Legal Metrology Department certified weighing machines.
Weight attributable to stones, beads, strings, wax, or other non-metal elements is fully excluded.
Gold jewellery/ornaments/coins between 18 and 22 carats only are accepted as eligible collateral.

METHODOLOGY FOR DETERMINATION OF VALUE

Value of gold is derived from benchmark price sources:
- India Bullion & Jewellers Association Ltd. (IBJA), or
- A SEBI-regulated commodity exchange
The Bank adopts the lower of:
- Previous day’s closing price, or
- 30-day average price of the relevant purity
Pricing is applied based on the actual caratage of each item.

GOLD AUCTION PROCESS

South Indian Bank extends credit facilities against the pledge of gold jewellery, ornaments, and coins. Given the inherent volatility of gold prices, timely repayment of gold loans is imperative. All gold loan accounts must be settled by repaying the principal, accrued interest, and applicable charges on or before the due date stipulated in the sanction terms.

In the event of non-repayment, the Bank reserves the right to initiate recovery measures, including the auction of pledged gold collateral, in strict adherence to RBI guidelines and the Bank’s internal policies.

Comprehensive notices are duly served to borrowers via registered post at the address recorded with the Bank or through any other permissible mode. This ensures borrowers are afforded a reasonable opportunity to regularise their accounts. Following the issuance of such notices, a Public Notice (where the initial notice remains undelivered), thereafter followed with newspaper publications regarding the Auction and an Auction Notice, will be issued. The auction shall then proceed as per the following timelines:

For Overdue/ NPA cases
If notice delivered to the borrower	Within 38 days from the date of default
If notice not delivered to the borrower	Within 54 days from the date of default

For LTV breached accounts
If notice delivered to the borrower	Within 20 days from the date of breach
If notice not delivered to the borrower	Within 45 days from the date of breach

Transparency and Fairness
- Auction notices are published in at least two leading newspapers (one in the regional language and one national daily), explicitly detailing the date, time, venue, and reserve price.
- The reserve price is set at no less than 90% of the current market value of the gold (based solely on net weight). It may be revised downward to 85% only if two successive auctions fail to elicit bids.
- Auctions are conducted through open competitive bidding in a fair, transparent, and equitable manner. Should the auctions be unsuccessful, the loan account will be closed using proceeds from private negotiations.
- Auctions are held at the respective branch where the gold loan was originally availed.
Borrower Rights
- The borrower may redeem the pledged gold at any time up to the previous working day before the scheduled auction.
- Borrowers and their legal heirs are permitted to participate in the auction.
Post-Auction Procedures
- The successful bidder takes possession of the gold upon full payment.
- Any surplus proceeds (after adjusting any other bank dues) will be refunded to the borrower or legal heir within 7 working days.
- In the case of any shortfall, appropriate recovery proceedings will be initiated as per the terms of the loan agreement.

All auctions are executed with rigorous compliance to RBI directives concerning valuation, notice periods, and transparency. For specific details pertaining to your gold loan account, kindly contact your branch.

Frequently Asked Questions

Get answers to your queries

To apply for an agricultural gold loan, applicants must be 18 years or above, own gold jewellery or ornaments to pledge as collateral, and meet the lender’s credit and repayment assessment criteria. The pledged gold should have a purity of 18 Karats or higher.

The maximum loan amount for an agricultural gold loan depends on the value and purity of the pledged gold, along with the lender’s assessment criteria. Under the SIB Agriculture Gold Loan, eligible individuals can avail a loan amount ranging from Rs. 25,000/- up to Rs. 25 lakh. The final loan amount is determined by the gold value, applicable loan-to-value ratios, and the repayment capacity assessment.

An agricultural gold loan application can be processed quickly once the required documents and gold valuation are completed. With a simple application process and minimal documentation, borrowers can access funds faster compared to traditional agricultural financing options.

If you are unable to repay your agriculture gold loan, the lender will provide reminders to clear the outstanding dues. If the loan remains unpaid despite repeated notices, the pledged gold may be auctioned to recover the outstanding loan amount as per the loan agreement and applicable guidelines.

To apply for an agriculture gold loan, borrowers typically need valid identity proof, address proof, and documents related to their agricultural activity. Additional documents may include land ownership records, lease agreements, or proof of involvement in eligible allied activities.

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