Tractor Plus scheme

Norms for financing Tractors under the Tie-Up

arrangement:
1. The scheme is named as SBH. Tractor Plus scheme.
2. The respective Tractor dealers will assist the
branches in identifying the eligible Borrowers.
3. Branches may consider financing of tractors on the
basis of viability of individual proposals but the choice
and selection of such tractors may. be left to the choice
of the individual beneficiaries. The loans will be at the
sole discretion of the Bank.
4. The time limit for sanction is 15 days.

Eligibility:
a. Minimum land holdings: 4- acres of perennially
irrigated land or corresponding acreage prescribed
for different categories of land under the State land
ceiling act (SLCA) for financing tractors upto 35
HP.
b. Minimum land holding criteria for financing
tractors above 35 HP is 6 acres of perennially
irrigated land or corresponding acreage as per SLCA.
c. Minimum 600 hours work per annum should be
available for the tractor including custom hiring
service. Minimum 50% of total amount required for
repayment of loan instalments together with interest
should come from incremental income, derived out of
mechanisation of borrowers farm,

 6. Security:
Primary security: Hypothecation of Tractor
& implements.
Collateral: Mortgage of farm lands /
Immovable property.
10% for Tractor and 20% for the
7. Margin:
implements.
8. Interest Rates: Upto RS.2.00 lacs at 10.25% p.a.
Above RS.2.00 lacs at 11.50% p.a.

9. Repayment: 9 years (including moratorium) with half

yearly installments.

.
Processing charges: Waived.
Insurance: Third party insurance.
The Tractor financed has the necessary commercial test
report as per BIS code issued by CFMTTI, Budni,
Madhya Pradesh.
The tractor should be registered with the concerned
Regional Transport authority
Financing of the Tractors under the Tie-up arrangements
may be considered outside service area also
For HMT tractors the payment for the Tacto4r to be
made in favour of HMT Ltd.; payable at respective state
capitals.