Maha Agri-machinery Rental Scheme (MARS)

Type of facility

Term Loan (TL)

Purpose

Credit facilities may be considered for activities providing custom services to farmers like:

• For financing ‘Custom Hiring Centers’ for purchase of tractor, power tiller, bulldozer, trailer and accessories, combine harvester, grain threshers, sprayers, dusters, ploughs, drills and such other farm implements and equipment’s needed for agricultural activity used for hiring on custom basis.
• Purchase of Aerial spraying machineries / Implements.
• Purchase of drilling rig for boring wells / drilling of tube wells
• Purchase of equipment for construction of wells and /or execution of lift irrigation scheme for water supply service
• Purchase of truck and trailer units to be hired to farmers for transporting farm produce from farms to processing factories or market yards.
• Purchase of Excavator for earth works acquiring tankers engaged in transportation of milk
• Acquiring specialized trucks for transportation of poultry birds
• Purchase of bullock cart

(Purchase of Brand New Machineries shall be considered under this Scheme. Purchase of 2nd hand and used asset are not eligible under the scheme)

Eligibility

Individual, Proprietorship, Partnership Concern, FPO/FPCs, Private Limited Companies, Public Limited Companies and Limited Liability Partnership concern, Self Help Groups, Joint Liability Groups, Co-operative Society of farmers and Rural Entrepreneur (Rural youth and farmer as an entrepreneur)

Quantum of Finance

Minimum: No Minimum Limit

Maximum: Rs. 5.00 Cr per Borrower

Margin

Loan up to Rs.1.60 Lakh : No margin

Loan above Rs.1.60 Lakh : 15 %

Credit Rating

Internal Credit Rating is mandatory for all accounts with aggregates exposure (Fund + Non-Fund) of above Rs. 25.00 Lakh. (Minimum Credit Risk rating shall be “BBB”)

Rate of Interest

Risk Based Pricing

Minimum -RLLR + 0.10% P.A.

Maximum - RLLR + 1.15% P.A.

Security

Loan up to Rs.1.60 Lakh : Hypothecation of assets created out of bank finance

Loan above Rs.1.60 Lakh :

• Primary Security –

  Hypothecation of assets created out of bank finance

• Collateral Security-

  Mortgage of immovable property (Compliant under SARFAESI Act) in the name of borrower/s, proprietors, partners, directors or close relatives such as spouse, parents (father & mother), brother, sister, son, daughter and daughter-in-law may be accepted as security. The owner of the property invariably be taken as guarantor to the credit facilities.

  Noting of Bank’s hypothecation charge in the RC book, Two blank TTO forms signed by the borrower/s.

Insurance

Comprehensive Insurance of Securities hypothecated or Mortgaged* to the Bank, covering all type of Risk including floods and earthquake for value of Securities hypothecated or Mortgaged to the Bank with Bank clause.

(*In case of Land & Building insurance replacement value is advisable to save cost.)

Repayment

Maximum 7 years (Including Maximum Moratorium Period up to 6 months) on monthly/quarterly/ half-yearly annual instalments based on income generation and also depending upon the purpose of investment, economic life of assets and cash flow of activity.

Other Terms & Conditions

• KYC norms to be followed scrupulously.
• CIC Report/ RBI defaulter list should be obtained and verified. CIBIL Score should be more than 600.
• Disbursement shall be made directly to the supplier/dealers by RTGS/NEFT with Promoter contribution on ascertaining the account details.
• Invoice / receipt, copy of RC book with bank charge & insurance with bank clause is required.

Paper Required

1. Loan application i.e. Form No.138 & Enlosure B2
   • All 7/12, 8A, 6D extract, Chatu Sima of the land of applicant/s.
   • In case co-applicant is salaried/ businessmen the latest salary slip/ ITR/Form 16/Balance Sheet & P/L/Statement.
   • No dues certificates of the applicant/s from surrounding financial institutions including PACS.
   • Legal Search & Valuation report for loans above Rs.1.60 Lakh where land is mortgaged
   • Price Quotation of Vehicle/ Machineries from Authorized dealers.
2. Guarantee Form F-138
   • All 7/12, 8A & PACS due certificate
   • In case guarantor is salaried/ businessmen, the latest salary slip/ ITR/Form 16/Balance Sheet & P/L/Statement.