Purpose | Purchase of Tractor, Trailer, Implements and other Accessories. |
Type of loan | Agricultural term loan |
Eligibility | Individual farmers /Group farmers a) For Tractors below 35 H.P., Minimum 6 Acres of perennially irrigated land or 12 Acres of cultivable dry land |
Loan amount | 85% of unit cost. |
Disbursements | Direct to the supplier. |
Margins | 15 %of the total unit cost. |
ROI | See interest rates on loans and advances |
Processing fee | See service charges |
Penal Interest | See service charges |
Repayment | 9 yearly/18 half yearly installments commencing from six months after the date of first disbursement coinciding with the fluidity of crops. |
Security | Hypothecation of Tractor and Trailer and other assets created out of bank finance. Creation of registered / equitable mortgage of agricultural land in the name and possession of the applicant. |
Papers / Documents required | a) Hypothecation Agreement. e) Undated Form 29 & 30 in duplicate. |