Priority Sector

Providing financial assistance for purchasing tractor and power tiller for the purposes of tillage operations, transportation of output and inputs and custom hiring.

ii.

Providing self employment to rural youth for taking up custom hiring as well as tillage of his own land.

iii.

To increase direct lending to agriculture.

i.

Through rural and semi urban branches within or even outside their service area.

ii.

For such loan service area concept will not be applicable.

iii.

The concept of 'No Objection Certificate' is dispensed with, but indebtedness of the farmer is to be examined by exchange of list of borrowers amongst the bankers in the service area / block / tehsil.

i.

A non-defaulter farmer possessing minimum 2.5 acres of irrigated land for tractor and 1.5 acre of irrigated land for power tiller. In case where financing of tractor is 100% secured by liquid security like FD, NSC etc., there will be no minimum land holding criteria, but the applicant should be a farmer.

ii.

For rural youth below 35 years of age having a valid tractor driving license and possessing minimum 2 acres of irrigated land for tracor and 0.5 acres of irrigated land for power tiller. He should be a non-defaulter and duly recommended by BDO/DRDA/DRDC/Panchayet and Anchal Pradhan.

10% for farmers and 15% for owner driver. However, no margin in case of loan upto Rs.50,000/-.

Rate of Interest is liable to be changed from time to time; a reduction of 0.25% is allowed if the borrower agrees to obtain a Life Insurance Policy equal to the amount of loan. Since the Bank is acting as a Corporate Agent of TATA AIG, borrower may be pursuaded to have the policy with TATA AIG, although it is not a compulsion. The current rate of interest for different scheme given in separate chapter of the Manual of Instruction.

Primary

:

Hypothecation of the tractor/power tiller/accessories

Additional

:

Mortgage/charge on land possessed by the applicant and/or third party guarantee acceptable to the bank.

i.

D.P. Note

ii.

Hypothecation of transport equipment

iii.

Hypothecation of movable Plant & Machinery

iv.

Mortgage/charge on the land, wherever necessary

v.

Assignment of LIC Policy, wherever necessary

Comprehensive insurance of the tractor/power tiller/accessories is to be done at the borrower's cost with bank's clause. Life Insurance of the borrower is optional.

To be repaid within 7 years, including a moratorium period of 6 months which may be extended to 12 months subject to approval of the controlling Regional Manager; repayable is quarterly instalments by the farmers and monthly instalments by the owner drivers.

10. Financing of second hand Tractor

2nd hand Tractors can be financed upto 90% of the assessed value provided the following conditions are fulfilled :-

i.

Age of the Tractor must be within 7 years from the date of original purchase.

ii.

Valuation of the tractor done by any automobile engineer or any other organisation / body approved by the respective State Govt.

iii.

Other terms & conditions of the scheme.