Farm Transport Scheme (Two/Three/Four wheeler loans to Farmers)

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Farm Transport Scheme (Two/Three/Four wheeler loans to Farmers)

FARM TRANSPORT SCHEME

SNo

Parameter

Modified / Revised guidelines

Purpose

For purchase of new two/three/four wheelers/trucks/jeeps/pickup vans, Refrigerated Van, Delivery vehicles, Mini trucks, Vehicle with trolley etc. by the agriculturist.

The vehicle should be registered in the main applicant’s name and should be used for personal/business purpose and NOT FOR commercial purpose.

Eligibility

The applicant should be an agriculturist having sizeable land.
Agriculturist having scattered land holding/land in two or more villages in more than one piece/farm situated far away from residence.
Eligible Co-applicants can be: Spouse, Father, Mother, Son, Un-married daughter.
Minimum age of borrower/s should be 18 years.
Maximum permissible age at the end of repayment is 75 years.

Loan Limit

Type of Vehicle	Maximum Limit in lakhs
Two-Wheeler	3.00
Three-Wheeler	7.50
Four-Wheeler – OLD	10.00
Four-Wheeler-NEW	25.00

Margin

15-40%

On Road price which includes Registration charges, accessories, Insurance & Road Tax are reckoned for arriving at the margin.

Rate of Interest

Two-Wheeler vehicle:

Limit	Applicable ROI *
Up to Rs 1.00 lakh	MCLR + 1.50% (Simple)=8.75%
Above Rs 1.00 lac to Rs 3.00 Lac	MCLR + 2.00% (Simple) = 9.25%

Three/ Four-Wheeler Vehicle - NEW:

Limit	Applicable ROI *
Up to Rs 5.00 lakhs	MCLR + 0.50%= 7.75% simple
Above Rs 5.00 Lacs to Rs 25.00 Lacs	MCLR + 0.75%= 8.00% simple

Four-Wheeler – OLD:

MCLR+3.00% - IRRESPECTIVE OF LIMIT

Income Criteria

Preferably Income Tax Return filed by borrower for last financial year should be obtained as income proof.

In case Income Tax Return is not available, Income Certificate issued by Tahsildar/ Block Level Revenue Authority should be obtained.

In case where both ITR & Income Certificate from Tahsildar are not available, branch may ascertain the income on the basis of land holding, cropping pattern & income from allied activities, Spouse/Children Income etc. and satisfy itself regarding his income & the capacity of the borrower to repay the loan instalment (Principal +interest). The calculation of the same must be held on record.

75% of net income should be considered for assessment of the repayment capacity.

Service Charges

Processing Charges

Flat charges:

Rs 500 to Rs 1000 +GST applicable

Security

FOR NEW VEHICLES:

For Loans up to Rs 1.60 Lac

Hypothecation of vehicle and accessories.

For Loans above Rs 1.60 Lac

Hypothecation of vehicle & accessories.
Guarantee of spouse must be obtained. In its absence, guarantee of close relative (Father/Mother/Son as the case may be) to be obtained.Apart from this, third party guarantee with sufficient means, in any case NOT less than 100% of loan limit, acceptable by bank to be obtained.Conditions specified for obtaining collateral security:

a. No need to insist for mortgage of land in case of fresh funding under this segment subject to following condition:

The customer shall be our existing borrower & the conduct of the account shall be satisfactory with no history of SMA-1 (or) 2 In any of the existing loan availed by borrower.

Existing borrower who has already availed the finance under the scheme, the existing security shall be continued till the loan Is repaid fully.However, existing collateral security, if available, sanctioning authority may permit concession of 0.25% on the applicable ROI for the scheme for loan to purchase Three/Four Wheelers (NEW only).

FOR OLD 4 –WHEELER:

For Loans up to Rs 1.60 Lac

Hypothecation of vehicle and accessories.

For Loans above Rs 1.60 Lac

Hypothecation of vehicle & accessories.
Guarantee of spouse/Close relatives/Third Party/Owner of Mortgagor to be obtained.

For FRESH BORROWERS.

We need to insist for suitable COLLATERAL S£CURITY such as mortgage of land (Accepted value of land should be more than 50% of loan amount) in case of NEW borrowers coming into our banking fold.

Repayment Period