Bank of India (BOI) Provides Finance for Farm Machinery

Bank of India (BOI) helps farmers by providing finance for purchase of agricultural equipment.

Purpose:
1. Purchase of new or second hand tractor, power tiller, power thresher, harvester, power sprayer, power duster, chaft cutter, and other equipment useful for agricultural activities.
2. Pick-up van, two wheeler, bullock-cart to be used for transportation of agri. inputs & farm produce/ product.
3. Loan is also available for repairs or renovation of vehicles.

Eligibility:
1. Individual Farmers having 8 acres of perennially irrigated land for tractor and 5 acres of perennially irrigated land for power tiller. Depending upon the scope of custom hiring & cropping pattern, land holding criteria may be considered at 5 acres and 3 acres for tractors and power tillers respectively.
2. Agro Service Centres run by technically qualified entrepreneurs for acquiring farm machinery.

Quantum of finance: As per cost of the vehicle / equipment

Security
Loan up to Rs.1.00 lakh – Hypothecation of machinery & Bank charge to be registered with RTA.

Loan above Rs.1.00 lakh –
1. Hypothecation of machinery & Bank charge to be registered with RTA.
2. Mortgage of Land or Declaration as per Agril. Credit Act or collateral security of adequate worth.

Margin
1. New Vehicle -
Loan up to Rs.1.00 lakh – Nil
Loan above Rs.1.00 lakh – 15% to 25%

2. Second hand Tractor – minimum 33.33%

3. Repairs/ Renovation - minimum 25%

Rate of interest: Interest Rates as decided by the Bank from time to time.

Source: http://www.bankofindia.co.in/