Beti Bachao Beti Padhao

Farm Mechanization

Farm Mechanization
Type of FacilityTerm Loan (TL)
Purpose
  • Purchase of New / Second Hand Tractor (with / without trailer)
  • Purchase of Power Tiller
  • Purchase of Combined Harvester
  • Purchase Power Thresher, Sprayer & Other farm machineries.
EligibilityAll farmers- Individual / Joint landholders
Land Holding Criteria
  • New / Second Hand Tractor- 3 acres of perennially irrigated Agriculture land or 8 acres of seasonal irrigated land (Single or Jointly owned)
  • Power Tiller- 1.50 acre of perennially irrigated Agriculture land or 5 acres of seasonal irrigated land (Single or Jointly owned)
  • Combined Harvester -6 acre of perennially irrigated Agriculture land or 15 acres of seasonal irrigated land (Single or Jointly owned) & used efficiently on custom hiring basis looking into the potentiality for hiring.
  • Purchase Power Thresher, Sprayer & Other farm machineries - No minimum Land holding
AmountMaximum Rs.25.00 Lakh
MarginLoan up to Rs.1.60 Lakh : No margin
Loan above Rs.1.60 Lakh :
  • New Tractor - 15% (i.e. Ex Showroom price + RTO Charges + Insurance Charges)
  • Second Hand Tractor- 40%
  • Power Tiller- 15%
  • Combined Harvester –15% (i.e. Ex Showroom price + RTO Charges + Insurance Charges)
  • Purchase Power Thresher, Sprayer & Other farm machineries – 25%
Rate of Interest
  • New Tractors, Power Tillers, Combine Harvester, etc
    Loan up to Rs.10 Lakh - 1Year MCLR +BSS @0.50% +1.00% p.a.
    Loan above Rs.10 Lakh - 1Year MCLR +BSS @0.50% +2.00% p.a.
  • Second Hand Tractors
    1Year MCLR +BSS @0.50% +3.00% p.a.
Security
  1. Up to Rs 1,60,000: Hypothecation of tractor unit
  2. Above Rs 1, 60,000:
  1. Hypothecation of tractor unit and
  2. Third party guarantee (Two)/Mortgage of land

Noting of Bank’s hypothecation charge in the RC book Two blank TTO forms signed by the borrower/s.
Repayment5 to 9 years, depending upon the purpose of loan
Other Terms & Conditions
  • Bank will finance only for those models of tractors which have completed the commercial test from organizations viz Central Farm Machinery Training & Testing Institute (CFMTT) Budni (Madhya Pradesh) or Farm Machinery Training and testing Institute ( FMTT), Hissar
  • Registration of the tractor - The tractor should be registered with concerned Regional Transport Authority with bank clause.
  • Insurance – Comprehensive insurance should be obtained in respect of assets acquired.
  • Bank’s hypothecation should be prominently displayed on the machinery
  • Where ever there is tie up arrangement the terms and condition as per MOU be followed.
Paper requirement
  1. Loan application ie Form No -138, & Enclosure – B2
    • All 7/12, 8 A, 6 D extracts, Chatu Sima of the applicant
    • No dues certificates of the applicant from surrounding financial institutions including PACS
    • Legal search from advocate on Bank’s panel for loans above Rs.1.60 lakh where land is to be mortgaged
    • Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan
  2. Guarantee form F-138
    • All 7/12, 8 A & PACS dues certificate of the guarantors
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