SBI Agriculture Loan For Financing Of Second Hand / used Tractors Schemes (SBI - Mahindra Vishwas & SBI TAFE Nayaroop) enable farmers with smaller land holdings to mechanize their farms.
Eligibility for Agriculture Loan For Financing Of Second Hand / Used Tractors
Individual farmer or a group of farmers not exceeding three in number (as co- borrowers) owning minimum 3 acres of perennially irrigated agricultural. Tractors which are more than 7 years from the original purchase date shall not be financed.
Economic use of tractor: Minimum of 600 working hours per annum.
Limit: The overall maximum limit will be Rs.2.50 lac including the cost implements.
Margin for Agriculture Loan For Financing Of Second Hand / Used Tractors
15% on the cost of tractor and implements. DSCR (min): is 1.75. The purchaser (borrower) should either own a minimum of two equipment or the branch should finance the same along with the second hand tractor.
Repayment of Agriculture Loan For Financing Of Second Hand / Used Tractors
Loan amount should be completed before the expiry of 9 years from the date of original purchase of the tractor inclusive of a maximum gestation period of one year.