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Financing Agriculturists for Purchase of Tractors & Other Farm Machinery

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.

*MCLR Rate available in Home page

( Last modified on Apr 13, 2020 at 04:04:48 PM )