Second Hand Tractors Leasing Finance Scheme

Purpose:      

Leasing out Used/Second hand tractors to farmers. The Tractor would be unencumbered and should not be more than three years old maintaining good condition.

Eligibility:    

Resident Self Cultivator having Agriculture Land minimum of 5 acres and maximum 50 acres.

Amount:        Maximum Rs.400, 000/-.

Equity:          

10% to 20% of the forced sale value assessed by banks and PBA approved surveyor. Market and

forced sale value of the tractor will also be verified by the Branch Manager and ACO.

Security:      

FARMERS:

        1.         Lease Tractor (to be registered in the name of the Bank)

        2.         Charge on Agriculture Land through Agri. Pass Book.

        3.         One personal guarantee of reputable person of the area. ACO along with Regional

                 Chief can waive this condition if they deem the borrower to be very credit worthy. Two

                 written satisfactory market checking reports must be obtained before disbursement.

Insurance:   

The Lessee will arrange comprehensive insurance of tractor and his own Life  assurance under Bank’s mortgage clause as per Bank’s arrangement

Mark-up:       15% per annum.

Lease Period:   Maximum three years.

Repayment: Half yearly installments. (Minimum two and maximum six half yearly  installments).

Others: 

Registration Charges and Insurance premium of the tractor will be borne by the lessee. Corporate Farmers will also be accommodated to purchase second hand tractors under Kissan dost corporate farming finance scheme. The said Scheme will be a part of Kissan Dost Tractor Scheme