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Scheme for financing farmers for Purchase of Vehicles (Four Wheelers)

Scheme for financing farmers for Purchase of Vehicles (Four Wheelers)
FacilityAgricultural Term Loan (ATL)
PurposePurchase of brand new Four Wheel vehicles i.e. Car, SUVs, Jeep, Van & other Light Motor Vehicles / Multi Utility Vehicles (MUVs) for supervising agriculture operations / effective management of farm / estate and for transportation of agricultural produce / inputs, labour etc
Eligibility
  • The applicant/s should be an agriculturist, cultivating his own land or should be engaged in allied activities such as Dairy, Poultry, sericulture, fisheries etc.
  • The applicant/s should possess a valid driving license or engage driver possessing valid driving license.
  • The applicant or any member of the family should not be defaulters to any bank or financial institutions.
  • Multiple banking is not allowed.
Age Limit:
  • For individuals: 18 years and above.
  • Maximum Age at Maturity of loan should not exceed 70 years.
Income & Land holding criteria
  • The applicant/s should have net annual income of minimum Rs.3.00 Lakh from farm / allied activities / other sources and should own minimum 4 acres of perennial irrigated land or minimum 6 acres of seasonally irrigated land
Loan AmountMaximum Rs. 10.00 Lakh
Margin25 % of the cost of vehicle plus RTO charges.
Rate of Interest1 year MCLR +0.25 %
Security
  1. Loan amount upto Rs. 1.00 lakh
    • Hypothecation of Vehicle.
  2. Loan amount above Rs. 1.00 lakh
    • Hypothecation of Vehicle
    • Mortgage of Land / Third Party Guarantee
Repayment
  • The entire loan along with interest shall be repaid within a period of 5-7 years. The repayment would be monthly / quarterly / half- yearly / yearly instalments depending upon generation of income / cash flow.
  • The repayment shall be linked to harvesting season of the main / cash crop / income generation cycle of the activity.
InsuranceAsset created have to be insured for full value.
Other Terms & Conditions
  • KYC norms to be followed scrupulously.
  • CIBIL report/RBI defaulter list should be obtained and verified.
  • All documents should be submitted in original before disbursement of the loan
  • Disbursement through RTGS, only in favour of dealers on ascertaining the Account details
  • Invoice / Receipt, Copy of RC Book with Banks charge and Insurance with bank clause is required.
Paper requirement
  1. Loan application ie Form No -138, & Enclosure – B2
    • All 7/12, 8 A, 6 D extracts of the applicant
    • In case of Co-Applicant is salaried or businessmen, the latest salary slips / ITR / Form 16 / Balance Sheet & P/L staments
    • No dues certificates of the applicant from surrounding financial institutions including PACS
    • Legal search from advocate on Bank’s panel where land is to be mortgaged for 30 years
    • Price quotations of Vehicle from Authorized Dealers.
  2. Guarantee form F-138
    • All 7/12, 8 A & PACS dues certificate of the guarantors
    • In case of Guarantor is salaried or businessmen, the latest salary slips / ITR / Form 16 / Balance Sheet & P/L