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Support farm mechanization by making available farm equipment/ machineries especially to small and marginal farmers.


  • Applicant shall be Individuals, institutions or organizations (also include firm/company) who maintain/desire to maintain a fleet of tractors, bulldozers, well-boring equipment, threshers, combines etc., and undertake farm work for farmers on contract/hire basis.


  • The subject Scheme is applicable to Agri Service Units including Sugarcane Harvesters and Transporters maintaining various types of farm machineries/equipment.

Loan Amount

Maximum Rs.5.00 crores per borrower.
For limits above Rs.5 .00 crores, permission from Central office may be obtained.

Nature of facility

  • Short term loan or cash credit facility for day to day running of business/operational expenses.
  • Medium to long Term Loan for acquiring/ maintenance of fleets and other assets necessary to smoothly run the business.
  • Loan for purchase of second hand/used equipment (Not older than 3 years) is permitted in cases of tractors and combine harvesters where valuation shall be lowest of purchase cost, value assessed/certified by an authorized dealer of the make, value as per valuation report of an approved automobile valuer, Insurance Valuer and value calculated by applying 15% depreciation p.a. on reducing balance basis.


  • For New Assets: 25%
  • For 2nd Hand/used Assets: 40%


  •  Primary Security: Charge over asset created out of Bank finance.
  • Collateral Security: Mortgage of immovable property and Hypothecation of non-encumbered existing fleet not older than 3 years &/or pledge of specified financial assets (FDR, NSC etc.)


  • Short term loan shall be repayable within one year.
  • Medium/Long term loan:
  • Maximum 84 months including moratorium period of maximum 6 months.

Forms & Documents

  • Appropriate DPN note, Hypothecation agreement, Deed of Guarantee, Letter of continuity, Mortgage deed,  Letter of general lien and setoff, Hypothecation of vehicle agreement Comprehensive insurance policy of the asset with third party coverage ,Lien of Bank in RC book if any , Blank transfer TTO forms 28,29,30& 35 and any other document stipulated in sanction.

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Conditions apply

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