Andhra Pradesh Grmeena Vikas Bank – Rythu Vikas Chakra (Farm Mechanisation-Tractor loans for farmers)

By | June 24, 2011

Purpose Purchase of Tractor, Trailer, Implements and other Accessories.

Type of loan Agricultural term loan

Eligibility Individual farmers /Group farmers

a) For Tractors below 35 H.P., Minimum 6 Acres of perennially irrigated land or 12 Acres of cultivable dry land

b) Above 35 H.P. minimum 8 acres of perennially irrigated land or 15 acres of cultivable dry land.

c) Minimum 1000 hours of productive work in agriculture per year on own farm.

d) 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.

Margins 15 %of the total unit cost.

Rate of Interest –           See interest rates on loans and advances

Repayment –           7 yearly or 14 half yearly installments commencing from six months after the date of first disbursement coinciding with the fluidity of crops.

In case of custom hiring: – 60 monthly installments are including grace period of 6 months.

Security –           Hypothecation of Tractor and Trailer and other assets created out of bank finance. Creation of registered or equitable mortgage of agricultural land in the name and possession of the applicant.

Documents required –           a) Hypothecation Agreement.

b) Guarantee Agreement for Transport Operators.

c) Vehicle Charge to the Bank

d) Memorandum for creation of Mortgage by Deposit of Title Deeds.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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