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For financing ‘Custom Hiring Centers’ for purchase of tractor, power tiller, trailer and accessories, combine harvester, grain threshers, sprayers, dusters, ploughs, drills and such other farm implements and equipments needed for agricultural activity. Eligibility

Individuals, Association of persons, Firms, Companies, Self Help Groups, Joint Liability Groups etc. for setting up Custom Hiring Center for hiring out farm machineries to the farmers.
Finance should be given for purchase of fleet of tractors or any other farm

Quantum of Finance Ceiling on loan/limit is fixed as a minimum of Rs. 2.00 Lakhs and a Maximum of Rs. 50.00 Lakhs per borrower
Margin 15-25% of the project cost
Security
  • Prime: Hypothecation of assets created out of bank finance
  • Collateral: Mortgage of landed property, Collateral security comfort should be a minimum of 100% of the sanctioned limit.
  • Personal Guarantee: Personal Guarantee of Promoters / Directors/Partners.
  • Personal guarantee of the owner of the properties mortgaged, in case of a third party property being mortgaged.
Repayment Period
  • Principal amount to be repaid in 5-9 years in half yearly/Yearly installments depending up on the income generation.
  • Interest to be charged half yearly and to be demanded along with next principal due based on the repayment schedule.
In case of State or Central Government Sponsored subsidy Schemes In case of subsidy schemes sponsored by State /Central Govts., value of subsidy plus mortgage value should be equal to the loan amount (This is applicable only in case of back ended subsidy where the subsidy amount is kept as Term Deposit and linked to loan account.
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Last updated on 24-06-2024 05:08 AM

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