• Karnataka Bank Gold Loan

    The Karnataka Bank Gold Loan scheme is called KBL Agri Gold Scheme and this is offered specifically for meeting the expenses arising out of agricultural activities.

    Features of KBL Agri Gold Scheme

    Products under KBL Agri Gold Scheme

    KBL Agri Gold Scheme offers loan against gold for the purpose of Agri Production and Agri Subvention. Agri Subvention is implemented in rural and semi urban branches of the bank as per the instructions of the Central Government.

    Karnataka Bank Interest Rate

    The interest on gold loan loan for Agri Subvention is discounted and is 7% per annum.

    Loan Tenure

    The maximum loan tenure that is offered by the Bank on this gold loan scheme is 12 months for both Agri Production and Agri Subvention.

    Maximum Loan Amount

    The maximum loan amount that is offered as gold loan is Rs. 25, 00,000 per account and Rs 1, 00, 00,000 per borrower, for Agri Production purposes.

    The maximum loan amount offered to borrowers for Agri Subvention is Rs. 3, 00,000.


    Hypothecation of assets or crops is required as primary security. Collateral security is the gold ornaments that have been pledged with the Bank for the loan amount.

    Type of Gold

    All gold ornaments/ jewellery are accepted, especially minted gold coins that are sold by Banks, but this should not exceed 50 grams per borrower.


    The repayment of the gold loan principal amount should be made on or before the maturity date of the loan. Interest is to be paid out by the due date/ yearly.

    Eligibility for Karnataka Bank Agri Gold Loan

    In order to avail the KBL Agri Gold Scheme, the applicants should either be HUFs (Hindu Undivided Families), Corporates or Farmers. Farmers can apply for a gold loan either individually or jointly.

    FAQs on Karnataka Bank Gold Loan 

    1.  What is the maximum period of the loan? 
    2. The maximum period of the loan is 12 months. 

    3. What is the interest rate? 
    4. For Agri Gold Loan, the interest rate as of 1st June is 8.35% while for general gold loan up to Rs.2 lakh, the interest rate is 8.60%. For loans in the range of Rs.2 lakh and Rs.25 lakh, the interest rate is 8.90%.  

    5. What is Agri gold loan? 
    6. This loan lets you get finance against security of gold ornaments for agriculture purpose. 

    7. Can I avail a loan of Rs.25 lakh in one account? 
    8. No, you cannot do that. The maximum loan allowed per account is Rs.5 lakh. 

    9. What is the maximum amount that I can borrow when it comes to Agri Subvention loan? 
    10. Under Agri Subvention, the maximum loan amount you can borrow is Rs.3 lakh. It needs to be mentioned here that the loan can be borrowed from only rural and semi-urban branches of the bank. 

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