- Any rural youth below the age of 35 years, who has an educational qualification of minimum 8th standard and undergone training in maintenance/repairs of automobiles tractors.
- Applicant and his family should belong to the small and marginal farmers category and should possess a minimum family land holding of one acre of cultivated land and dealing with us and should have a minimum of 3 years of good tract record in dealings.
- Applicant should have a valid tractor driving license and should operate the tractor by himself i.e. the tractor should be owner driven.
- To promote young entrepreneurs in rural areas to take up the activity of custom hiring.
- To assist Small and Marginal Farmers both directly and indirectly.
- To increase lending under the AGR segment.
- The scheme will be applicable for the purchase of new tractors and implements and the max. loan amount is `3.00 lacs.
- Sanction of Loan should be made only in areas where the scope for custom hiring is good either for farming activities or for other secto` A minimum of 1500 hours of work should be available per year.
- The area should have good back up facilities for servicing the tractor.
- Initially, not more than one tractor should be financed in a village. However, in exceptional cases, where the scope exists, the number can be increased with prior permission from the controlling office.
- As per quotation of the tractor and other accessories including trailer of borrower’s choice, not exceeding `3.00 lacs.
- Tractor to be financed should be in the approved list of tractors circulated to the branches.
Margin: 25% on the cost of the tractor and accessories being purchased.
Repayment: 5 to 7 years including a moratorium period of 6 months instalments may be fixed at monthly intervals. The moratorium may be extended upto 12 months at the discretion of controlling authority.
- Primary: Hypothecation of the tractor and accessories financed.
- Collateral: Mortgage of land possessed by the applicant or his family Irrespective of the value of the land OR third party guarantee.
Insurance: Third party insurance for the tractor and accessories to be obtained after taking letter of undertaking from the borrower as per specimen enclosed. Our hypothecation charge will be noted in the insurance policy.
Interest: As applicable to agriculture term loans from time to time.
Discretionary Powers: As applicable to ATL.
Other terms and conditions: As applicable to tractor loan under our general scheme.