Gold has traditionally served as a crucial financial asset for farmers in India, especially during periods of agricultural distress and income uncertainty. In recent years, gold pledgement policies introduced by banks and financial institutions have significantly influenced farmers’ access to institutional credit. This study examines the impact of gold pledgement policies on farmers in Coimbatore district of Tamil Nadu. The research focuses on policy features such as loan-to-value ratio, interest rates, repayment period, and procedural requirements. Primary data were collected from sample farmers using structured questionnaires, while secondary data were sourced from journals, reports, and policy documents. The study analyses how these policies affect farmers’ borrowing behaviour, liquidity position, and dependence on informal credit sources. Statistical tools such as percentage analysis, correlation, and ANOVA were employed for data analysis. The findings reveal that gold pledgement has improved timely credit availability and reduced reliance on moneylenders. However, issues like high interest rates, short repayment tenure, and lack of policy awareness persist among small and marginal farmers. The study concludes that while gold pledgement policies provide financial support, policy refinement and farmer education are essential to enhance their effectiveness. Appropriate policy measures can strengthen financial inclusion and improve the socio-economic condition of farmers in Coimbatore.
M et al. (Sun,) studied this question.