Tractor Plus
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Tractor Plus scheme Tractor Plus scheme • Norms for financing Tractors under the Tie-Up arrangement: • 1. The scheme is named as SBH. Tractor Plus scheme. • 2. The respective Tractor dealers will assist the branches in identifying the eligible Borrowers. • 3. Branches may consider financing of tractors on the basis of viability of individual proposals but the choice and selection of such tractors may. be left to the choice of the individual beneficiaries. The loans will be at the sole discretion of the Bank. • 4. The time limit for sanction is 15 days.
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Transcript of Tractor Plus
Tractor Plus schemeTractor Plus scheme
• Norms for financing Tractors under the Tie-Up arrangement:
• 1. The scheme is named as SBH. Tractor Plus scheme.
• 2. The respective Tractor dealers will assist the branches in identifying the eligible Borrowers.
• 3. Branches may consider financing of tractors on the basis of viability of individual proposals but the choice and selection of such tractors may. be left to the choice of the individual beneficiaries. The loans will be at the sole discretion of the Bank.
• 4. The time limit for sanction is 15 days.
Eligibility:
• a. Minimum land holdings: 4- acres of perennially irrigated land or corresponding acreage prescribed for different categories of land under the State land ceiling act (SLCA) for financing tractors upto 35 HP.
• b. Minimum land holding criteria for financing tractors above 35 HP is 6 acres of perennially irrigated land or corresponding acreage as per SLCA.
• c. Minimum 600 hours work per annum should be available for the tractor including custom hiring service. Minimum 50% of total amount required for repayment of loan instalments together with interest should come from incremental income, derived out of mechanisation of borrowers farm,
• 6. Security:» Primary security: Hypothecation of
Tractor & implements. » Collateral: Mortgage of farm lands /
Immovable property.• 7. Margin: 10% for Tractor and 20% for
the implements.• 8. Interest Rates: Upto RS.2.00 lacs at 10.25%
p.a.• Above RS.2.00 lacs at 11.50%
p.a.• 9. Repayment: 9 years (including moratorium)
with half yearly installments.
• Processing charges: Waived. .• Insurance: Third party insurance.• The Tractor financed has the necessary
commercial test report as per BIS code issued by CFMTTI, Budni, Madhya Pradesh.
• The tractor should be registered with the concerned Regional Transport authority
• Financing of the Tractors under the Tie-up arrangements may be considered outside service area also
• For HMT tractors the payment for the Tacto4r to be made in favour of HMT Ltd.; payable at respective state capitals.
