| Type of Facility | Term Loan (TL) |
| Purpose | - Purchase of Tractors/Power tillers
- Purchase of Combine Harvesters
- Purchase of Threshers & other farm implements
- Purchase of vehicle for transportation of farm input / produce
|
| Eligibility | All farmers- Individual / Joint landholders |
| Land Holding Criteria | - Tractor up to 35 HP: Minimum 4 acres of perennial irrigated land.
- Tractor above 35 HP: Minimum 6 acres of perennially irrigated land
(Corresponding acreage of dry land or seasonally irrigated land)- Power tiller: Minimum 3 Acres of perennially irrigated land
|
| Amount | As per cost of machinery along with implements and accessories |
| Margin | For tractor / Power tiller unit –- Loan Up to Rs 1.60 lakh : No Margin
- Loan Over Rs 1.60 lakh : 15 % -25% of investment cost of unit
|
| Rate of Interest | Up to Rs.10.00 lakh : 1 Year MCLR + BSS@0.50% + 1.75% Above Rs.10.00 lakh : 1 Year MCLR +BSS@0.50%+ 2.75% |
| Security | - 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.
|
| Paper requirement | - 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
|
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