|Type of Facility||Term Loan (TL)|
- 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|
(Corresponding acreage of dry land or seasonally irrigated land)
- Tractor up to 35 HP: Minimum 4 acres of perennial irrigated land.
- Tractor above 35 HP: Minimum 6 acres of perennially 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 1.00 lakh : No Margin
- Loan Over Rs 1.00 lakh : 15 % -25% of investment cost of unit
|Rate of Interest||ROI shall be as applicable to Agricultural advances|
- Up to Rs 1,00,000: Hypothecation of tractor unit
- Above Rs 1, 00,000:
- 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.1.00 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