Scheme for financing farmers for Purchase of Vehicles (Four Wheelers)

 

Scheme for financing farmers for Purchase of Vehicles (Four Wheelers)

Facility

Agricultural Term Loan (ATL)

Purpose

Purchase of brand new Four Wheel vehicles i.e. Car, SUVs, Jeep, Van & other Light Motor Vehicles / Multi Utility Vehicles (MUVs) for supervising agriculture operations / effective management of farm / estate and for transportation of agricultural produce / inputs, labour etc.

Eligibility

 The applicant/s should be an agriculturist, cultivating his own land or should be engaged in allied activities such as Dairy, Poultry, sericulture, fisheries etc.

 The applicant/s should possess a valid driving license or engage driver possessing valid driving license.

 The applicant or any member of the family should not be defaulters to any bank or financial institutions.

 Multiple banking is not allowed.

Age Limit:

 For individuals: 18 years and above.

 Maximum Age at Maturity of loan should not exceed 70 years.

Income & Land holding criteria

 The applicant/s should have net annual income of minimum Rs.3.00 Lakh from farm / allied activities / other sources and should own minimum 4 acres of perennial irrigated land or minimum 6 acres of seasonally irrigated land

Loan Amount

Maximum Rs. 10.00 Lakh

Margin

25 % of the cost of vehicle plus RTO charges.

Rate of Interest

1 year MCLR +0.25 %

Security

1) Loan amount upto Rs. 1.00 lakh

 Hypothecation of Vehicle.

2) Loan amount above Rs. 1.00 lakh

 Hypothecation of Vehicle

 Mortgage of Land / Third Party Guarantee

Repayment

 The entire loan along with interest shall be repaid within a period of 5-7 years. The repayment would be monthly / quarterly / half- yearly / yearly instalments depending upon generation of income / cash flow.

 The repayment shall be linked to harvesting season of the main / cash crop / income generation cycle of the activity.

Insurance

Asset created have to be insured for full value.

Other Terms & Conditions

 KYC norms to be followed scrupulously.

 CIBIL report/RBI defaulter list should be obtained and verified.

 All documents should be submitted in original before disbursement of the loan.

 Disbursement through RTGS, only in favour of deale