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A
grave handicap that
afflicts our farmers is the lack of proper facilities to
take their produce to the market through efficient means
of transportation. This adversely affects the freshness,
quality of the products and denies them the desirable Price-Fetching
opportunity. Conversely, farmer lack mobility to acquire
much needed inputs essential for their farming needs. One
can safely conclude that if provided with appropriate and
speedy transport, the farmers can benefit by enhancing their
selling ability of the product and thus increasing their
income. As their is no support provided to cater to the
transport needs of deserving rural farmers, the Bank has
taken the lead to launch "KHUSHALI-E-KISSAN FARM
TRANSPORT SCHEME." |
Purpose of Finance :
Purchase
of Motor Cycles, Small Pick-ups / Vans & Small Chillers
etc.
Amount of Finance :
The amount of finance will be 80% of purchase price
of the vehicle (Motorcycle, Pick-up / Van and Small Chillers)
or equal to 80% of land value as per PIU or 50% of agri
land or 50% of urban property value as per Market Price.
Mode of Finance :
The mode of finance under this scheme shall be leasing
of the assets. i.e. Motorcycle, Pickup / Van and small
Chillers
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 equivalent to 20% more than the finance amount
or the assessed market value of offered land property should
be equivalent to 2 times the amount
of finance applied.
d) Minimum equity participation should be 20% of the
cost of Vehicle to be acquired which must be contributed
by the applicant. The debt equity ratio will be 80:20.
e) The Existing & New Borrowers fulfilling the
other terms & conditions
f) The Farmer should not be a defaulter of any financial
institution.
Security :
Primary
:
Title
of goods - Primary security leased asset i.e. Motorcycle
/ Pickup / Van and small Chillers
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
or Assets i.e. Motorcycle / Vehicle 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 :
10
equal bi-annual installments i.e. principal + accrued mark-up
will be due on June 30 and Decmeber
31 every year.
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Farm
Transport Scheme