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.
- 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.
- Loans up to Rs.160000/- – NIL
- If the total cost of Tractor and power tiller exceeds Rs.1.60 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
- Tractor: 9 years – 18 half yearly installments; Power tiller: 7years or 14 half yearly.
- Pre used Tractor: 5 years-Quarterly/Half yearly/yearly instilments
- 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 Dec 05, 2022 at 01:12:45 PM )