Purpose
For acquiring all types of vehicles (except passenger cars) / farm machinery for agricultural purpose / farm supervision / transportation of agricultural produce and inputs / laborers / managing allied activities and other farming related activities (including new two wheelers and three wheelers).
Eligibility
Basic agricultural purposes of individuals, partnership firms, corporate planters, companies etc
Loan Amount
For new vehicles - 90% of the ex showroom price.
For Used vehicles - 80% of depreciated / market / purchase value whichever is less.
Depreciation is calculated in straight line method - 15% for the first year and 10% for subsequent years. Part of the year shall be counted as one year.
For Two / Three wheelers & Power tillers the borrower must have a minimum of 1 acre of productive agricultural land in own name or in the name of close relatives.
For Tractors & Four wheelers other than heavy vehicles minimum 2.50 acres of productive agricultural land in own name or in the name of close relatives.
For Heavy vehicles Minimum 20 acres of productive land in own name or in the name of close relatives name.
Period
Tractors, Tillers, HMV & Earth Moving equipments
New Vehicle – Up to 60 months
If fully secured by collateral immovable security or 50% secured by liquid security – up to 84 months
Used Vehicle – Up to 36 months
If fully secured by collateral immovable security or 50% secured by liquid security – up to 48 months
All other vehicles
New Vehicle – Up to 84 months
Used Vehicle – Up to 48 months
If fully secured by collateral immovable security or 50% secured by liquid security – up to 60 months
Rates & Interest
See Rates & Interest Page
Security
Hypothecation of vehicle & accessories purchased out of the loan amount as primary security.
For Tractor, Power Tiller, Truck, earth moving equipments & Light Commercial vehicles collateral security is needed.
Other conditions for used vehicles
Maximum age of used vehicles such as tractors, power tillers, and heavy vehicles & earth moving equipments are 24 months from the date of original registration. And all other vehicles (except two & three wheelers) 48 months from the date of original registration.