Tractors and tillers are a huge help for farmers and rightly so as they increase productivity while also reduce costs. However, the machines are very expensive and a small farmer who needs it is not able to buy due to lack of money. This is why the Bank of Maharashtra has started a loan service for farm mechanization, especially for farmers like you.
If you want to purchase farm mechanization such as tractors, tillers, combine harvesters, threshers, and even vehicles for farms, you can now do so by taking the Bank of Maharashtra farm mechanization loan. If you are unable to afford the machines but want to buy one to grow your farm, then you should continue reading to know more about the terms of this loan.
Purpose of Bank of Maharashtra loan:
Farmers who want to purchase tractors/ power tillers, combine harvesters, threshers, and other farm implements including vehicles for transportation of farm inputs/ produce.
Who is eligible for the Bank of Maharashtra Farm Mechanization loan?
All farmers, be they individual or joint landholders are eligible to take out this loan.
Land Holding Criteria for the loan:
For tractors up to 35 HP, a minimum of 4 acres of perennially irrigated land
For tractors above 35 HP, a minimum of 6 acres of perennially irrigated land
Power tiller, minimum 3 acres of perennially irrigated land
How much amount is provided through this loan?
The amount of loan provided will be as per the cost of the machinery along with the implements and accessories.
Margin: For tractors/ power tiller units:
Loan up to Rs 1.60 lakh, there is no margin
Loan over 1.60 lakh, there is a 15-25% of the investment cost of the unit
What is the interest rate for the Bank of Maharashtra Farm Mechanization loan?
The rate of interest for the loan is;
Up to Rs 10 lakh: 1-year MCLR + BSS@0.50% + 2%
Above Rs 10 lakh: 1-year MCLR + BSS@0.50% + 3%
Security:
Up to Rs 1,60,000: Hypothecation of tractor unit
Above Rs 1,60,000
Hypothecation of the tractor unit and
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 of loan: 5-9 years, depending upon the purpose of the loan
Documents required for the Bank of Maharashtra Farm Mechanization loan:
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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 an advocate on the Bank’s panel for loans above Rs.1.60 lakh where land is to be mortgaged Price quotations/ Plan estimates / Permissions etc. depending on the purpose of loan
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Guarantee form F-13B
All 7/12, 8 A & PACS dues certificates of the guarantors
To learn more about the loan, check out the official website.
