SCORING MODEL FOR TRACTOR LOANS

Purpose

Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements

Who are eligible for tractor loan?
  • Agriculturists (individually or jointly)

  • Minimum land holding 4 acres of perennially irrigated land.

  • Applicants should score of 56 under the scoring model of the bank. Proposals with credit score of 26 & above but upto 55 will be considered after credit enhancement.

Loan amount

Upto 85 % of the cost of the Tractor, trailer and accessories. The cost includes the Registration charges and insurance premium not exceeding Rs 15,000/-. Bank will finance only for those models of tractors which have completed the commercial test from organizations viz. Central Farm Machinery Training and Testing Institute (CFMTTI) Budni (Madhya Pradesh) or Farm Machinery Training and Testing Institute (FMTTI), Hissar.

Security
  • Hypothecation of the tractor, accessories and implements. Noting of Banks hypothecation charge in the RC Book of the tractor is compulsory in all the cases.

  • Collateral Security like NSCs, KVPs, Banks Fixed Deposits Surrender value of LIC policy etc OR Mortgage of agricultural lands.

How to repay the loan

Within a maximum period of 9 years, including a grace period not exceeding 12 months. The installments shall be payable half-yearly / yearly, coinciding with the harvesting and marketing period of the crops proposed to be grown by applicant/borrower.

How to apply for this loan

You may contact our nearest branch or talk to the marketing officers visiting your village.