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Scheme for financing farmers for Purchase of Vehicles (Two / Three Wheelers)

Scheme for financing farmers for Purchase of Vehicles (Two / Three Wheelers)
FacilityAgricultural Term Loan (ATL)
PurposePurchase of brand new vehicles such as Two Wheelers, Three Wheeler Carriages 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.1.00 Lakh from farm / allied activities / other sources and should own minimum 2 acres of perennial irrigated land or minimum 4 acres of seasonally irrigated land.
Loan AmountMaximum Rs. 1.25 Lakh
Margin25 % of the cost of vehicle plus RTO charges.
Rate of Interest1 year MCLR +0.75 %
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.
    • Valuation Certificate from Registar / Sub – Registar of the area
  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