Ø      Eligibility :

à  Borrower employed in Govt /Semi Govt./reputed (P) sector: -
     (Minimum 4 acres of irrigated land (or) 12 acres of dry land), OR

à  Having own business:- (With known source of minimum income of Rs.5000 per month).

Ø      Purpose :

à  To Mechanise the farming activities for increasing the agricultural production.

à To meet out the needs of farmers who can not afford to buy a new tractor.

Ø      Loan Amount :

à  Persons engaged in cultivation of irrigated cash crops under tie up arrangement/contract farming :- (5 acres of irrigated land/ 15 acres of dry land).

à  Persons engaged in cultivation of all other field crops : - (6 acres of irrigated land/18 acres of dry land).

à  The cost certified by surveyor/approved by Banks/insurance companies (or) by applying 7% depreciation straight line method p.a. whichever is less.

Ø      Net Loan Amount :

à  TPC less Margin subject to Maximum of Rs.1, 50,000/- only.

Ø      Margin :

à  10% of the cost of the vehicle.

Ø      Rate of Interest :            

11.50% p.a. (@ BPLR+TP - 1.50%)  

Ø      Security :

à  Hypothecation of tractor purchased with the bank loan.

à  Mortgage of properties and Third party guarantee.

Ø      Repayment :

à  In 5 years with Quarterly/Half Yearly/ Annual Installments, depending upon the crop cultivated.