SBI Agriculture Loan For Financing Power Tillers to farmers or a group of not more than 3 farmers owning 2 acres of land. Farmers owning lesser acreage also become eligible for availing Power tiller loans provided Debt Service Coverage Ratio (DSCR) work out to 1.75 and above, Income from Custom hiring adequate, farmers adopting intensive cultivation practices.
Loan Amount for Power Tillers: As per Invoice less margin.
Margin for Power Tillers Loan: A minimum margin of 10% on the total cost of power tiller plus accessories.
Security for Power Tillers Loan
- Primary: Hypothecation of assets.
- Collateral (upto Rs 50000): Nil.
- For loans above Rs.50,000 and upto Rs.2.00 lacs: mortgage of land, Value shall be at least 50% of the loan amount. Or One third party guarantee, Or liquid at least 50% of the loan amount. Above Rs 2 lacs: EM of land at least 50% of the loan amount.
Repayment of Power Tillers Loan: Maximum 9 years with one year as gestation period.