Financing Agriculturists for Purchase of Tractors and 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.200000/- – NIL
• If the total cost of Tractor and power tiller exceeds Rs.2.0 Lakhs – Margin 10%.
• If value of the collateral security is equal to loan amount margin is 5%.
• Pre used Tractor: 5% – age < 3 years old; 10 % for age more than 3 years to 7 years.

Interest Rate :

• Please refer the Lending Rates link on home page in our Bank’s Website – www.indianbank.in

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 200000/-: Hypothecation of assets created out of loan
• Loans above Rs 200000/- : Hypothecation of assets created out of loan and mortgage of land whose value is equivalent to loan amount plus third party guarantee.

*MCLR Rate available in Home page