Maharashtra Bank Scheme for Farm Mechanization

 Farm Mechanization

Type of Facility

Term Loan (TL)

Purpose

 Purchase of Tractors/Power tillers

 Purchase of Combine Harvesters

 Purchase of Threshers & other farm implements

 Purchase of vehicle for transportation of farm input / produce

Eligibility

All farmers- Individual / Joint landholders

Land Holding Criteria

 Tractor up to 35 HP: Minimum 4 acres of perennial irrigated land.

 Tractor above 35 HP: Minimum 6 acres of perennially irrigated land

(Corresponding acreage of dry land or seasonally irrigated land)

 Power tiller: Minimum 3 Acres of perennially irrigated land

Amount

As per cost of machinery along with implements and accessories

Margin

For tractor / Power tiller unit –

1. Loan Up to Rs 1.00 lakh : No Margin

2. Loan Over Rs 1.00 lakh : 15 % -25% of investment cost of unit

Rate of Interest

ROI shall be as applicable to Agricultural advances

Security

1. Up to Rs 1,00,000: Hypothecation of tractor unit

2. Above Rs 1, 00,000:

1. Hypothecation of tractor unit and

2. Third party guarantee (Two)/Mortgage of land

Noting of Bank’s hypothecation charge in the RC book Two blank TTO forms signed by the borrower/s.

Repayment

5 to 9 years, depending upon the purpose of loan

Other Terms & Conditions

 Bank will finance only for those models of tractors which have completed the commercial test from organizations viz Central Farm Machinery Training & Testing Institute (CFMTT) Budni (Madhya Pradesh) or Farm Machinery Training and testing Institute ( FMTT), Hissar

 Registration of the tractor - The tractor should be registered with concerned Regional Transport Authority with bank clause.

 Insurance – Comprehensive insurance should be obtained in respect of assets acquired.

 Bank’s hypothecation should be prominently displayed on the machinery

 Where ever there is tie up arrangement the terms and condition as per MOU be followed.

Paper requirement

1. Loan application ie Form No -138, & Enclosure – B2

 All 7/12, 8 A, 6 D extracts, Chatu Sima of the applicant

 No dues certificates of the applicant from surrounding financial institutions including PACS

 Legal search from advocate on Bank’s panel for loans above Rs.1.00 lakh where land is to be mortgaged

 Price quotations/ Plan estimates / Permissions etc. depending up on the purpose of loan

2. Guarantee form F-138

 All 7/12, 8 A & PACS dues certificate of the guarantors