Purpose:
Provision of financial facility
to the farmers and non farmers (those who provide tractors to farmers on rental
basis for various tractor related operations), for purchase of Tractor on Lease
Finance Basis.
Eligibility:
Resident Self Cultivator having
Agriculture Land
minimum 5 acres and
maximum 50 acres.
OR
The persons who are related with the business of providing services for
tractor
related farming
practices to the farmers on rental Basis.
Amount:
Maximum Rs. 750,000/-.
Equity:
10% to 20% of the cost of Tractor will be paid by the borrower on case to case basis.
Security:
1. Lease
Tractor (to be registered in the name of Bank)
2. Charge
on
Agriculture
Land
through
Agri. Pass
Book.
3. One
personal guarantee of reputable person. Two written satisfactory
market checking reports.
Margin on Collateral Security:
-
50% Margin on Agri land assessed by PBA’s Approved Surveyor.
-
25% Agri land as per value in 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:
The Lessee will arrange comprehensive insurance of tractor.
Life assurance of lessee
under the Bank’s charge.
Mark-up:
15% per annum.
Repayment:
10 equal half yearly installments (within five years).