Farm Machinery Loan
Eligibility:
To purchase the agricultural mechanisation (tractor/ power tillers), the loan amount dispensation for farmers the minimum holding limit (for irrigated land) is determined as follows:-
| Loan Amount | Minimum Irrigation Limit |
|---|---|
| Upto Rs 1.00 Lakh | One and a half Acre |
| Upto Rs 1.50 Lakh | Two Acres |
| Upto Rs 2.00 Lakh | Two and a half acres |
| Upto Rs 2.50 Lakh | Three Acres |
| Upto Rs 3.00 Lakh | Three and a half acres |
| More than Rs 3.00 Lakh | Four Acres |
However, twice the value of Loan amount incurred by farmer, the farming land is required to be kept as mortgage.
Margin:
- The beneficiary farmer will have to contribute 15% of the cost of agricultural machinery by private resources.
Interest Rate:
- From Rs 25,000.00/- to Rs 2.00 Lakh - 10.50%
- More than Rs 2.00 Lakh - 11.50%
- Time limit for loan repayment for tractor will be 7 years and for power tiller will be 9 years.
Security:
- The tractor / power tiller and other agricultural machine purchased from bank has to be hypothecated in favor of the bank and it will be provided with the land mortgage will be guaranteed by the two competent persons, the real estate of them should be equivalent of a loan.
** For more information please visit your nearest branch of District Co-operative Bank Ltd. Saharanpur.
