Krishna Grameena Bank – Farm Mechanization Loan

By | March 29, 2011

Krishna Grameena Bank (KGB) is a Regional Rural Bank established on 01-12-1978 & is sponsored by State Bank of India.

The area of operation of the Bank comprises three districts viz., Gulbarga, Bidar and Yadgir. The present Branch network is 119, of which 94 branches functioning in rural area, catering to the needs of farming community, rural artisans and other rural mass.

The Bank is one of the only 2 RRBs in India, selected by NABARD for implementation of SMART CARDS PILOT PROJECT, wherein Processor Cards are used by SHG members to know balances in their SB a/c s and to draw the money without bothering to Branch Manager/Rural Development Officer.

Purpose: This loan finances purchase of tractor, trailor and other agriculture equipments.

 

Eligibility: Farmer should own 6 acres of perennial irrigated (12 months) or 15 acres of dry land.

 

Quantum of loan: As per quotation, the cost of tractor+ trailor+ agriculture implements is granted as loan. Disbursement is done directly to the dealer.

 

Margin: 10% to 20% of the project cost may be the margin fro this personal loan.

 

Repayment: Repayment has to be done in 18 half-yearly installments including a grace period of 11 months.

 

Security: Hypothecation of tractor+ trailor+ implements purchased out of bank finance is required as security. Equitable/registered mortgage of landed property is also required as a security

 

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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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