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Farm Mechanization

Farm Mechanization
Type of FacilityTerm 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
EligibilityAll 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
AmountAs per cost of machinery along with implements and accessories
MarginFor tractor / Power tiller unit –
  1. Loan Up to Rs 1.00 lakh : No Margin
  2. Loan Over Rs 1.00 lakh : 15 % -25% of investment cost of unit
Rate of InterestROI shall be as applicable to Agricultural advances
Security
  1. Up to Rs 1,00,000: Hypothecation of tractor unit
  2. Above Rs 1, 00,000:
  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.1.00 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