Bank of India
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Farm Mechanisation

 
Purpose
  • Purchase of new or second hand tractor, power tiller, power thresher, harvester, power sprayer, power duster, chaft cutter, other equipments useful for agricultural activities.
  • Pick-up van, two wheeler,  bullock-cart to be used for transportation of agri. inputs & farm produce/ product. 
  • Loan is also available for repairs or renovation of vehicles.
Eligibility
  • Individual Farmers having 8 acres of perennially irrigated land for tractor and 5 acres of perennially irrigated land for power tiller.  Depending upon the scope of custom hiring & cropping pattern, land holding criteria may be considered at 5 acres and 3 acres for tractors and power tillers respectively.
  • Agro Service Centres run by technically qualified entrepreneurs for acquiring farm machinery.
Quantum of finance As per cost of the vehicle / equipment
Security
  • Loan upto Rs.1.00 lakh
    1. Hypothecation of machinery & Bank charge to be registered with RTA.
  • Loan above Rs.1.00 lakh
    1. Hypothecation of machinery & Bank charge to be registered with RTA.
    2. Mortgage of Land or Declaration as per Agril. Credit Act or collateral security of adequate worth.
Margin
  • New Vehicle -

Loan upto Rs.1.00 lakh – Nil
Loan above Rs.1.00 lakh – 15% to 25%

  • Second hand Tractor – minimum 33.33%
  • Repairs/ Renovation   - minimum 25%
Rate of interest Interest Rates as decided by the Bank from time to time.
Repayment
  Maximum
New Tractor 9 years
New Power Tiller 7 years
Second hand Tractor  4 years
Other Machinery 3 to 5  years
Repairs/Renovation 3 to 5 years