TMB Tractor Loan for Farmers
TMB Tractor Loan for Farmers
The Tamilnad Mercantile Bank (TMB) Limited has launched the Tractor Loan Scheme to the farmers for agricultural purposes. Under the Tractor Loan Scheme, the farmers of the rural and semi-urban community can avail the loan for buying a tractor or any farming equipment. This scheme enables hassle-free credit to the farmers as they can avail loan up to Rs. 6 Lakhs. In this article, we look at the TMB Tractor Loan Scheme in detail.
Objective of the Scheme
The primary objective of the TMB Tractor Loan Scheme is to satisfy the requirements of the farmers in the purchase of Tractor and other implements under the priority sector of Agriculture and allied activities.
To avail the Tractor Loan from TMB, the farmer has to satisfy the below-listed criteria:
- Resident Individual / Joint
- Sole Proprietary Concerns
- Partnership Firms
- Trust / Association / Club/ Society
- Private or Limited Company
- Limited Liability Partnership and all legal entity.
The below listed are the KYC documents need to be furnished at the time of applying for the loan:
- Identity Proof: Aadhar Card, Driving License, PAN Card, Voter Identity Card, etc.
- Address Proof: Aadhar Card, Valid Passport, Property tax bill, Utility bill, etc.
- Quotation of tractor issued by the dealer to customer
- Proof of landholding [Farmer must have a minimum of 2 acres of irrigatable Land or 4 acres of dry land (fully cultivable) subject to economic viability]
Note: All the above Terms and Conditions are subject to change, and sanctioning of the loans is at the discretion of the Bank. Goods and Service Tax (GST) on All Service Charges extra wherever applicable.
Quantum of Loan
Under this scheme, a maximum amount of loan can be obtained would be up to Rs. 6 Lakhs.
A minimum of 15% of the loan amount to be paid by the applicant.
Hypothecation of Tractor and other farming implements.
- In case of agricultural land, collateral security must be obtained for not less than 100% of the limit.
- In case of other properties, collateral security must be obtained for not less than 50% of the limit.
- Collateral Society would be obtained in the form of fixed deposits, National Savings Certificate, LIC Policy or such other acceptable security.
- The period of repayment is based on the cropping pattern or harvesting season and income generations up to a maximum of 9 years.
- One can repay the loan in monthly, quarterly, half-yearly and yearly basis depending on the borrower.
The processing fee for the term loan will be 1.00% of the limit without any maximum cap and additionally with the applicable tax.
Rate of Interest
- For the MCLR based interest rates, the applicants can contact the nearest TMB branch.
- The current Base Rate for Lending (BR) is 9.75% per annum.
The penal interest will be charged 2.00% per annum for any irregularity or default in the repayment process and the above rate of interest on the balance outstanding exceeding Rs. 25,000.
To apply for the Tractor Loan Scheme with TMB online, the applicant can apply either by approaching the nearest branch or by filling up a form on its official website. The applicant will have to fill up the form with the relevant details with documents. The bank officials will contact the applicant to take the process further.
Post by Sinduja Shankar
IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.