To enhance the level of farm mechanization for timely agriculture operation, provide opportunity to farmers engaged in dry land farming or having small land holding who can not afford to purchase first hand tractor, can now obtain finance for second hand tractor under this scheme.

The mode of finance covers activities for purchase of second hand tractor with max. loan amount of Rs 2 lacs:

Purchase of second hand tractor up to 80% of the value assessed

or

Current market price of new tractor of same model/manufacturer minus depreciation @12% p.a. at straight line method.

plus

expenses for repairing not exceeding Rs 50000/- as per estimate.

plus

Equipment cost (depreciated) if not considered in valuation mentioned above.

Eligibility
Farmers engaged in cultivation of crops as owner of land, permanent tenants or leaseholders (for reasonably long period)

• Should have perennially irrigated land of 2 acres in his own name or jointly with family members who will be joint borrowers.
• Farmers of other agriculture lending scheme viz. dairy, poultry, fisheries are also eligible to undertake the transportation of their produce as well as hollage work.

Nature Of Facility: Term loan

Repayment Schedule
Repayment period is fixed on quarterly/ half yearly or annual basis, based on income generation from crops taken and off farm activities of the farmer. The maximum repayment period is 5 years.

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