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Image  FARM MECHANISATION SCHEME


For purchase of new Tractors /new Combine Harvester/new Power Tillers with accessories

Purpose

  • Purchase of new Tractors /new combine Harvester/new Power Tillers with accessories.
  • Minimum performance standard prescribed by Govt of India should be complied.

Eligibility

  • For Combine Harvesters:
    • Farmers having 10 acres of perennially irrigated land or corresponding acreage as prescribed for different categories of land under the concerned State Land Ceiling Act.
    • Productive work/custom hiring of minimum 2000 hours per year.
  • For Tractors with accessories, implements and/or trolley:
    • On the basis of HP of Tractor;

Upto 35 HP

3 acres perennially irrigated land OR
6 acres of dry land.

Above 35 HP

5 acres perennially irrigated land OR
10 acres of dry land.

  • Productive work/custom hiring of minimum 1000 hrs per year.
  • For Power Tillers:
    • 1 acres perennially irrigated land or 2 acres of dry land.
    • Productive work/custom hiring of minimum 600 hrs per year.

Margin

  • Up to Rs. 1.60 lakh   : Nil
  • Above Rs. 1.60 lakh : Minimum 15% on Road Price includes registration charges, accessories, insurance and road tax.
  • Second tractor (after disposal of first tractor)-25%

Loan Amount

  • Maximum 85% of unit cost (Including implements) based on quotation.

Security

  • Loans up to Rs.1.60 lakh

Hypothecation of asset created out of bank finance.

  • Loans above Rs.1.60 lakh-
    • Hypothecation of asset created out of bank finance and;
    • Mortgage of land (Accepted value of land should be more than 100% of loan amount) &/ or third party guarantee (with means not less than 100% of loan amount).

Repayment Period

For Tractor, Combine Harvester- maximum 9 years
For Power Tiller                      - maximum 7 years   

Forms & Documents

Appropriate DPN note, Hypothecation agreement, Deed of Guarantee, Letter of continuity, Declaration /undertaking for Agriculture advance, Mortgage deed,  Letter of general lien and setoff, Letter of undertaking from borrower / Guarantor for disclosure CIBIL, Comprehensive insurance policy of the asset financed with third party coverage ,Lien of Bank in RC book for tractor and trailer , Blank TTO forms 28,29,30& 35 and any other document stipulated in sanction.

For repairs/overhauling of tractors

Purpose & Eligibility

  • For repair/overhauling of tractor finance by our bank or tractor purchased by our existing regular KCC borrower with or without finance from other financial institution.
  • Loan for repair/overhauling of tractor which is not older than 5 years can only be considered.

Quantum of Loan

  • Maximum Rs.0.50 Lakh

Security

Hypothecation of vehicle for which finance is extended for repairs/overhauling.

Repayment

Repayable in maximum 5 years including moratorium period.  Moratorium period can be allowed upto maximum 6 months.

Forms & Documents

Appropriate DPN note, Hypothecationagreement, Deed of Guarantee, Letter of continuity, Declaration /undertaking for Agriculture advance, Mortgage deed,  Letter of general lien and setoff, Letter of undertaking from borrower / Guarantor for disclosure CIBIL, Comprehensive insurance policy of the asset financed  ,Lien of Bank in RC book for tractor and trailer , Blank TTO forms 28,29,30& 35 and any other document stipulated in sanction.

 

Finance for all other Farm Equipment’s

Purpose

  • To purchase farm equipment’s like Thresher, Winnowers, Seed cum fertilizer drills, Groundnut decorticator, Puddler, Rice planters & similar other equipment’s.
  • Finance is restricted to new equipment’s only.

Eligibility

  • All farmers with own agricultural land.

Margin

  • Minimum 15%

Loan Amount

  • Maximum 85% of unit cost.

Security

  • Loans up to Rs.1.60 lakh

Hypothecation of asset created out of bank finance.

  • Loans above Rs.1.60 lakh-
    • Hypothecation of asset created out of bank finance and;
    • Mortgage of land (Accepted value of land should be more than 100% of loan amount) &/ or third party guarantee (with means not less than 100% of loan amount).

Repayment Period

Maximum 5 years including moratorium period of maximum 6 months.

Forms & Documents

Appropriate DPN note, Hypothecation agreement, Deed of Guarantee, Letter of continuity, Declaration /undertaking for Agriculture advance, Mortgage deed,  Letter of general lien and setoff, Letter of undertaking from borrower / Guarantor for disclosure CIBIL, Comprehensive insurance policy of the asset ,Lien of Bank in RC book if any , Blank TTO forms 28,29,30& 35 and any other document stipulated in sanction.


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Conditions apply.

For more details please contact our nearest branch