Purpose – To facilitate farmers/ Planters to acquire vehicle for timely supply of inputs required for agricultural operators/ Allied activities, transport of agriculture produce and agricultural labours and to undertake visits for farm supervision
Nature of Vehicle – For purchase of new jeep, Pickup van, Mini Truck, Truck, Tempo, Agricultural Transport vehicle, Cars/vans and two wheelers etc. Second hand vehicles not more than three years old from the date of registration shall also be financed under the scheme.
Loan Amount – Maximum 75% of the cost of the vehicle including accessories , registration, charges and insurance amount for purchase of new; maximum 50% of the value of the vehicle as per valuation report ( By an approved valuer) and the income criteria for repayment of the loan for second hand vehicles
Security – Hypothecation of the vehicle finance out of Bank loan similar to car loan offered by other banks; Suitable third party guarantee whose net worth is not less than 200% of the loan amount.
Disbursement – Entire loan amount along with margin should be remitted to the dealer/ supplier/Seller through Account pay DD or pay order.
Repayment – With in 4 to 7 years for new vehicles and 4 to 5 years for second hand vehicles from the date of disbursement, the periodicity of the repayment shall be monthly/half yearly/ yearly installments depending upon the cropping pattern, harvesting marketing of crops etc., there should not be any repayment holiday/moratorium.