Farm Mechanization Support Scheme

mybank Ltd. is providing an added power at the farm i.e. Tractor, the beneficial advantages of which will be  maximization of the production capacity with the use of Mechanical Support i.e. important equipments which essentially  complement each other due to their cost effectiveness and time efficiency.
 mybank has launched  "KHUSHALI -E- KISSAN FARM MECHANIZATION SUPPORT SCHEME" for the assistance of the small farmers on soft and easy terms and conditions.

    Purpose of Finance :

  Purchase of agri-implements, equipments i.e. Trailers and Thrashers, Power Tillers, Power & Boom Sprayer, Plough and Cultivators, Riggers / Drills, Rotators, Diggers, Cotton Pickers, Saw Machine for   crates making, Press machines for wheat straw and dry fodders & Potato Diggers etc.

    Amount of Finance :

 The amount of finance will be 80% of the purchase price of the asset to be acquired provided that the amount of finance is collaterally secured equal to 80% of land value as per PIU or 50% of agri land or 50% of urban property value as per Market Average Price.

   Mode of Finance :

 The mode of finance under this scheme shall be leasing of the assets.

   Limit of Finance :
 
 Maximum exposure per party will be Rs. 0.500M (under one scheme or in aggregate of all schemes   /  purposes.)

   Rate of Rental Income / Mark-up :
    12% per annum (Revisable).

      In case of default in repayment of installment or mark-up, additional mark-up @ 5 Paisa per thousand per       day  shall be charged from the date of default, if the due amount is not cleared within one month from the       date it  become due for payment.
  
      Arrangement fee at a flat rate of 1% to be charged

   Eligibility :

 a) The Farmer must be resident and self cultivator of the land. No absentee landlord shall be      entertained.
 b) The Farmer having unencumbered irrigated agriculture land-holding with minimum 5 acres and      maximum 50 acres situated within 50 KM radius from the branch of the bank shall be eligible.
 c) The land value as per PIU offered, as security should be 20% more than the finance amount or the      assessed market value of offered land should be  equivalent to 2 times the amount of finance      applied.
 d) Minimum equity participation should be 20% of the cost of asset to be acquired which is to be         contributed by the applicant. The debt equity ratio will be 80:20.
 e) The Farmer should be owner of a tractor.
 f)  The Farmer should not be defaulter of any financial institution.


   Security : 
         Primary :
          
           Title of goods - Primary security leased asset i.e. Implement / Equipment Financed under the         scheme, which shall be purchased in the name of the bank.

        Collateral :          
        
           1) Bank charge on the agricultural land shall be created through Zari Pass Book.
           2) Two personal guarantees of reputed farmers of the area.
           3) Equitable / Registered Mortgage of urban property or cash / paper security.
           4) Comprehensive insurance of equipments / implements / Assets. acquired.
           5) Insurance Coverage of Agricultural Finance is compulsory. Therefore, the borrower will be                persuaded on merit to avail the multifarious benefits of life insurance and crop insurance                arrangements.

   Period of Repayment : 

     In 6 to 8 equal by-annual installments i.e. principal + accrued mark-up will due on June 30 and     December 31 every y ear.