Purpose: This loan finances purchase of Tractor, Trailer, Implements and other Accessories related to agriculture.
Eligibility: Individual farmers /Group farmers can avail this agricultural demand loan. The applicant must have a minimum amount of irrigated cultivable land and productive work in agriculture per year, in order to obtain loan for tractor. Applicants proposing to use the tractor for custom hiring should not be more than 45 years of age and possess a valid driving license.
Quantum of Loan: 85% of unit cost is granted as loan. Disbursement of loan is done directly to the supplier.
Margin: The margin is 15 %of the total unit cost.
Repayment: Repayment has to be done through 7 yearly/14 half yearly installments starting from six months after the date of first disbursement coinciding with the fluidity of crops. In case of custom hiring repayment has to be done within 60 monthly installments including grace period of 6 months.
Security: Similar to other loans like car loan, home loan hypothecation of Tractor and Trailer and other assets created out of bank finance serves as the security. Creation of registered / equitable mortgage of agricultural land in the name and possession of the applicant is also required.