Commercial Agro Services Finance Scheme

Purpose:      
Provision of financial facility to the commercially viable entities with immaculate track record for acquisition of Agri implements and equipments i.e. tractor trolleys, harvesters e.t.c. for providing agri services to farmers.

 

Eligibility:    

Commercially viable entities with immaculate track record with the Bank/Other financial institutions.

                       

Amount:       

To be decided on case to case basis keeping in view the financial/commercial viability of the

transaction. Not to exceed 80% of the value of equipments/implements.

 

Mode of Finance     It shall be lease finance.

 

Security:      

 1.         Leased Assets (Vehicles/Tractors will be registered in the name of Bank or Receipt of

          equipments will be issued in the name of Bank).

                       

 2.         Bank charge on Agri Land through Agri Pass Book OR

          Bank’s Charge on urban property through registered and equitable mortgage.

 

 3.         One personal guarantee of reputable person. Two written satisfactory market checking.

 

Margin on Collateral Security:

  • 50% Margin on Agri land or Urban property if assessed by Surveyor.
  • 25% Margin on Agri land if assessed on revenue record.
  • The maximum amount of Finance will be allowed upto 75% of the Oast Bai Value of land (Oast Bai is verified by Revenue Officer)

 

Insurance:   

Comprehensive Insurance of Leased Assets. Life assurance of lessee under the Bank’s charge.

 

Mark-up:       15% per annum.

 

Repayment:  Equal quarterly installments (within five years).

 
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