State Bank Of India (SBI) Tractor Loan Eligibility

State Bank Of India (SBI)

Purpose

Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements

Eligibility

Any individual or group of individuals i.e., JLGs/SHGs, institution or organization are eligible for finance which will have sufficient and regular income either from own farm activity or custom hiring incomes from the tractor proposed to be purchased and its accessories. Borrower should possess a minimum land holding of 2 Ac.

Margin

Minimum of 15%.

Primary security

Hypothecation of Tractor & Accessories.

Insurance:

The tractor and accessories purchased with bank¬Ěs finance have to be comprehensively insured for the full value.

Collateral Security

Mortgage of landed property valued equivalent of 100% of loan value.

Interest

12% p.a.

For prompt repayment, further concession of interest @1.00% by way incentive will be extended to the borrower and 0.50% to the tractor dealer. Concession will be extended in the month of july and will be on the basis of interest recovered between 1st July to 30th june of every year.

Upfront fee

0.5% of loan amount has to be charged as upfront fee.

Repayment

Loan is repayable in equated monthly installments in 5 years, including grace period of 1 month. (Relaxed in tune with the regular flow of funds in the hands of the borrower).

Postdated cheques will be obtained from the borrower for the EMI

EMI per Rs 1 lakh Rs 2225