SBI Agriculture Loan For Financing Power Tractor (Scoring Model For Tractor Loans)

SBI Agriculture Loan For Financing Power Tractor (Scoring Model For Tractor Loans) to provide finance for purchasing of new tractors, accessories and implements as Agricultural Term Loan that can be availed by Agriculturists (individually or jointly). There must be minimum of land holding 4 acres of perennially irrigated land. Applicants should score of 56 under the scoring model of the bank. Proposals with credit score of 26 & above but upto 55 will be considered after credit enhancement.

Loan Amount for Financing Power Tractor

Upto 85 % of the cost of the Tractor, trailer and accessories. The cost includes the Registration charges and insurance premium not exceeding Rs 15,000/-. Bank will finance only for those models of tractors which have completed the commercial test from organizations viz. Central Farm Machinery Training and Testing Institute (CFMTTI) Budni (Madhya Pradesh) or Farm Machinery Training and Testing Institute (FMTTI), Hissar.

Security for Financing Power Tractor

Hypothecation of the tractor, accessories and implements. Noting of Bank's hypothecation charge in the RC Book of the tractor is compulsory in all the cases. Collateral Security like NSC, KVP, Banks Fixed Deposits Surrender value of LIC policy etc. OR Mortgage of agricultural lands.

Criteria Calculating Score For Financing Power Tractor

Borrower Risk Characteristics are assigned 56 marks and Transaction Risk Characteristics, 44 marks, making a total of 100. Good proposals, obtaining score above 60, will not come under the purview of Branch NPA factoring. Hurdle rate is 40 marks.

Features of SBI Agriculture Loan For Financing Power Tractor

Margin: Margin varies from 5% to 20%, depending on the scoring as well as DSCR.

Security: Primary security: Hypothecation of the tractor, accessories and implements. Noting of Bank’s hypothecation charge in the RC Book.

Collateral security: As per scoring. However no collateral security is required, if the score is 70 and above on the scoring model of the bank.

Interest: As per scoring.

Upfront fee: Loan amount upto Rs.2,00,000/- : NIL. Above Rs.2,00,000/- : @ 1.25% of the amount.

Repayment: Within a maximum period of 9 years, including a grace period not exceeding 12 Months, payable half-yearly / yearly, coinciding with the harvesting.

Inspection: Regular loans (any amount) - Inspection once in six months. Irregular loans (any amount) - Monthly visits.

How to Repay the Loan of Financing Power Tractor

Within a maximum period of 9 years, including a grace period not exceeding 12 months. The installments shall be payable half-yearly / yearly, coinciding with the harvesting and marketing period of the crops proposed to be grown by applicant/borrower.

How to apply for Loan of Financing Power Tractor

You may contact our nearest branch or talk to the marketing officers visiting your village.

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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.