Lease Finance Facility For Purchase of Tractor under Green Tractor Scheme 2008-2009
|
|
In the wake of Chief Minister, Punjab's agenda for promotion of Agriculture Sector, Government of Punjab has decided to provide 10000 Tractors to small farmers on subsidized rates. A subsidy of RS: 200,000/- per tractor will be provided to the farmers declared successful through computerized balloting. The scheme has been titled as "Green Tractor Scheme 2008-09". In order to facilitate farmers and to grasp maximum business, our Management has approved a special product titled as "LEASE FINANCE FACILITY FOR PURCHASE OF TRACTOR UNDER GREEN TRACTOR SCHEME 2008-09" with following terms & conditions:
Eligibility
All Farmers who have been declared successful through computerized balloting.
The applicant should be a resident, owner/self cultivator of minimum 05 Acres of
agri land free from all encumbrances. Existing BOP borrowers having land under
Bank's charge are also eligible under this scheme.
The applicant should not be a defaulter of any Financial Institution.
Price of Tractor
The price of Green Tractor would be less by RS: 200,000/- from market price of tractor. Subsidy of RS: 200,000/- will be provided by Govt. Of Punjab directly to Tractor Manufacturers.
Make of Tractor
Government of Punjab has approved M/s Millat Tractors (Pvt.) Ltd. and Al-Ghazi Tractors Limited as Local Manufacturers of tractors for the scheme.
Amount of Finance
The amount of finance will be equal to the price of locally manufactured tractor less subsidy amount of RS: 200,000/- to be provided by the Government of Punjab. However, maximum amount of facility will not exceed the ex - factory price of tractor.
Equity
No Equity for Tractors having price up to RS: 500,000
10% equity of Subsidized Price (actual price - subsidy amount) for all Tractors having price above RS: 500,000/-
Security
• Leased Asset (Tractor) itself (Tractor will be registered solely in the name of The
Bank of Punjab).
• Charge on Agriculture Land through Agri. Pass Book.
• Two written satisfactory
market checking reports
Margin on Collateral Security
• 25% margin on three years Ost Bai of Agri Land as assessed by Revenue Officials.
• 50% margin on FSV of Agri Land as evaluated by Bank's approved surveyor (s).
Insurance
Asset Insurance and Life assurance of the Borrower (assigned to BOP) as per Bank's policy. (Insurance, Registration and evaluation charges (if any) etc shall be borne by the farmer.
Mark-up
18% Per Annum
Validity
05 Years from the date of disbursement.
Repayment
10 Equal Half Yearly Installments (Principal + Mark up).