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.