RULES FOR MEDIUM TERM FARM MECHANISATION LOAN
What is Farm Mechanization?
Farm mechanization means the use of modern mechanical devices for different agricultural practices. It increases agricultural productivity and avoids human drudgery. Some of the implements for Farm mechanization are Tractor and its accessories, tower Tiller, Thrasher etc.
Financing new Tractors/ Power Tillers
30% (thirty per cent) of the project cost shall be borne by the borrower. A member-society shall have to purchase requisite “C” Class Share for the loan
Period of repayment
Loan shall be repayable in 3 to 7 years for Tractors and 3 to 5 years of Power Tillers, including moratorium for 3 months.
Rate of interest
As may be decided by the Bank from time to time.
Appraisal and Sanction
All loans of this type shall be appraised by the Branch Manager himself or any official authorized by him with reference to the Loan Manual of the Bank specifically recommended by the Branch Manager/ Manager of the Branch, processed at the Regional / Head Office level and then considered and sanctioned by the appropriate Committee of the Bank, duly authorized by the Board of Directors from time to time or by the Board of Directors itself.
The borrower should arrange for insurance cover for the full value of the asset under comprehensive policy with Bank’s clause. The expiry of the policy should be diarised and the borrower shall arrange, at his own cost, for renewal of the policy well before the date of expiry.
For more information the please contact with the loan department of the bank and its branches.