Loan - Financing Agriculturists For Purchase Of Tractors & Other Farm Machinery
Purpose / Objective
For mechanizing the farming activities to improve agricultural production / productivity.
To purchase tractors with minimum three implements including trailer.
For purchase of Power Tiller.
For Purchase of pre used tractors.
Eligibility
Minimum 4 acres of irrigated land (or) 8 acres of unirrigated land (dry land).
Land holding in the name of family members who are blood related and execute documents as co borrowers, can also be considered.
Groups of beneficiaries whose holdings aggregate to the minimum land holding and situated in a compact block may also be considered for Tractor loan.
No Minimum acreage – custom hiring unit under MUDRA scheme.
Purchase of pre used tractor – the age of the tractor should not be > seven years.
Amount Of Loan
Based on the quotation / invoice submitted for the vehicles and implements.
In case of pre used tractor based on the valuation report of Bank’s Panel Engineer.
Margin
Loans up to Rs.160000/- – NIL
If the total cost of Tractor and power tiller exceeds Rs.1.60 Lakhs – Margin 10%.
Pre used Tractor: 5% – age < 3 years old; 10 % for age more than 3 years to 7 years.
Repayment
Tractor: 9 years – 18 half yearly installments; Power tiller: 7years or 14 half yearly.
Pre used Tractor: 5 years-Quarterly/Half yearly/yearly instilments
Security
Loans Upto Rs 160000/-: Hypothecation of assets created out of loan
Loans above Rs 160000/- : Hypothecation of assets created out of loan and mortgage of land whose value is equivalent to loan amount plus third party guarantee.
