Banks are providing a lot of financial assistance to farmers in order to provide impetus to the agricultural sector. Banks are entering into agreements with leading commercial vehicles /tractor manufacturers to provide easy finance to farmers.
Maximum Amount of Farm Equipment Loans Provided:
The maximum amount of loans varies from customer to customer depending on the value of land being mortgaged, tenure of loans required, income of the farmer. Banks generally fund 90% of the cost of tractor, which is upgraded to 100% sometimes. Loans required for farm equipments are funded to the extent of 50% of the value of the equipment.
Interest Charged by Banks for Farm Equipment Loans:
The rate of interest also varies depending on the loan amount, viability of the proposition and the value of collateral security provided. Banks also provide farmers with lower rate of interest to give a push to the agricultural sector.
Process of Farm Equipment Loans Application:
Farmers can contact their nearest tractor dealer, which in turn have tie ups with various leading banks. Dealers provide them with all the information and also help them choose the best option suiting their requirements.
Documents Required for Farm Equipment Loans:
- - Copy of claim
- - Proof of ownership of land
- - Proof of income
- - Proof of residence
Equipments for Agricultural Use:
- - Application form with photograph of the customer and all co applicants and/or guarantor.
- - Proforma Invoice of the asset to be funded from an authorized dealer.
- - Land records of the borrower/s.
- - Land valuation and title search report of the land.
- - Residence proof of the borrower/s.
- - Identity proof of the borrower/s.
- - Signature verification of the borrower/s.
- - Loan agreement, duly signed by the applicants and guarantor.
Equipment For Commercial Use:
- Application form with photograph of the customer and all co applicants and/or guarantor.
- Proforma Invoice of the asset to be funded from an authorized dealer.
- Proof of Income (any of the following) :
- Billing statement for the past one year
- Latest Income tax Return
- Last 6 months bank statement
- Residence proof of the borrower/s.
- Identity proof of the borrower/s.
- Signature verification of the borrower/s.
- Loan agreement, duly signed by the applicants and guarantor
List of Some Of Banks Offering Construction Equipment Loans:
ICICI Bank - Loan For Construction Equipment
HDFC Bank - Purchase Of Construction Equipment
Bank Of Baroda - Equipment Purchasing Schemes
* Terms and conditions may vary from bank to bank.