Finance For Tractor & Power Tiller
The applicant should have:
- Minimum land holdings for financing tractors up to 35 HP -4 acres of perennial irrigated land
- For tractors above 35 HP _ 6 acres of perennially irrigated land.
- And corresponding acreage prescribed for different categories of land under State Land Ceiling Act (SLCA)
- Minimum 600 hours work per annum for the machine.
|Unit Cost||:||According to the invoice or quotation of approved make|
|Margin||:||15% for borrowers availing loan for the first tractor or power tiller |
30% for borrowers availing loan for the second tractor or power tiller
|Repayment||:||9 years for tractors repaid half yearly |
7 years for power tillers repaid rests
|Security||:||Primary: Hypothecation of tractor, tiller with implements Collateral: Mortgage of farmlands or 3rd party guarantee|
|Insurance||:||3rd party insurance for the full value of the machinery|