|Type of Facility||Term Loan (TL)|
- Purchase of New / Second Hand Tractor (with / without trailer)
- Purchase of Power Tiller
- Purchase of Combined Harvester
- Purchase Power Thresher, Sprayer & Other farm machineries.
|Eligibility||All 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
|Amount||Maximum Rs.25.00 Lakh|
|Margin||Loan 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.
- Up to Rs 1,60,000: Hypothecation of tractor unit
- Above Rs 1, 60,000:
- Hypothecation of tractor unit and
- 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.
|Repayment||5 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.
- 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
- Guarantee form F-138
- All 7/12, 8 A & PACS dues certificate of the guarantors