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Image  FARM TRANSPORT SCHEME


SNo

Parameter

Modified / Revised guidelines

1

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.

2

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.

3

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

5

Margin

15-40%

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

6

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

7

Income Criteria

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

OR

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

OR

In case where both ITR & Income Certificate from Tahasildar 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.

8

Service Charges

Processing Charges

Flat charges:

Rs 500 to Rs 1000 +GST applicable

9

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 class="inner-page-table" by bank to be obtained.

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.

Collateral Security acceptable class="inner-page-table" by the Bank including mortgage of land, value of which is 50% of the Loan amount.

10

Repayment Period

Type of Vehicle

Max repayment tenure in months

Two Wheeler

36

Three Wheeler

60

Four Wheeler – OLD

36

Four Wheeler-NEW

84

13

Classification

Priority Sector: Agriculture: FARM CREDIT.



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