Security is different from sectorial lending.
If one applies and avails all loans, he maybe not having any other source for availing any type of loan or some accounts may be in default then he may apply for a gold loan, and classification is done as agricultural depending on the end-use, In villages, agriculturists may not be having title deeds of passbooks and banks may not advance for lessees though they have to invest the amount for such agricultural operations..
Keeping gold as security any type of loan including overdraft in the current account can be allowed.
Every bank has to make priority sector lending up to 25%+ to the priority sector.
Banks to reach their target disburse gold loans and classify them as agriculture to reach their targets.
Even Big Industrialists and top officials use the gold loan for agriculture as the rate of interest is 10% and for personal it is over 17.5% and self-declaration is enough.
Though this specific topic is not relevant to the query clarification is provided for information..