Tractor Loan/Finance/Refinance - Induslnd Bank

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INDUSLND BANK

 

INTRODUCTION:

Empowering the farmers to take timely and sound financial decisions, IndusInd Bank presents Indus Kisan- a Direct Agri Funding Product for the smart farmer. This product will enable farmers to acquire short-term and long-term credit through single window system for agricultural and allied activities. The loans obtained through this product would be secured and would be extended on basis of agriculture land holding and investment needs.

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FEATURES OF TRACTOR FINANCE

The product has 2 broad categories with sub variants:

Agricultural Activities

  • Crop Loan/ Production Loan-To meet working capital requirement for crop cultivation
  • Investment Loan- To meet long term needs for agricultural equipments like pump sets, sprayers, etc.

Agri-Allied Activities like- Dairy, Fishries, Poultry etc

  • Agri-Allied Over Draft- To meet working capital requirement for agri-allied activities
  • Agri-Allied Term Loan- To meet long term investment needs for agri-allied activities

A RuPay enabled Kisan Card will be issued to customer for withdrawing funds directly from their CC/OD account through any IndusInd Bank or other Bank’s ATM. The card can also be used at input dealer shop. The daily cash withdrawal limit on the card is Rs 25,000 at ATMs and Rs 50,000 at POS outlets.

 

BENEFITS OF TRACTOR FINANCE

  • Speedy approval and disbursement
  • No hidden charges
  • Bundled saving bank account for term loan portion and linked debit card for withdrawal
  • Free cash deposit ad free cash withdrawal from any IndusInd branch
  • No prepayment penalty
  • Attractive interest rates

 

ELIGIBILITY FOR TRACTOR FINANCE

  • Any Resident Indian who is major in age group of 18-70 years
  • The applicant must be engaged in agricultural or agri-allied activity.
  • In case the main applicant is more than 70 years of age, then co-borrower is mandatory
  • The borrower(s) or guarantor should not have been reported as ‘Defaulter’ as per the CIBIL report/RBI Defaulter List.
  • Radius of operation-50 Kms from the designated branch to borrower’s residence.
  • Indus Kisan is available at Select IndusInd Bank Branches of Punjab, Haryana, Rajasthan, Himachal Pradesh, Madhya Pradesh, Gujarat & Maharashtra at present.

 

DOCUMENTS REQUIRED FOR TRACTOR FINANCE

Pre Sanction Documents:

  • Filled in application form
  • Two latest photograph of all borrowers
  • Proof for signature verification - Passport/ Driving licence/ Pan card / Bank's verification
  • Identity proof
  • Address proof
  • Constitutional documents 
  • Quotation of tractor issued by dealer to customer
  • Proof of land holding 
  • Land valuation report from empanelled valuer (wherever applicable)
  • Past loan track record of the customer (wherever applicable)

Pre Disbursement Documents:

  • Duly executed loan documents 
  • Original Invoice issued by Dealer to customer 
  • Title Search Report from empaneled lawyer (wherever applicable)
  • Margin Money Receipt (Issued by the dealer to the customer as a token of acceptance to the margin money paid ) 
  • Mortgage Deed in case of registered mortgage (wherever applicable)
  • Comprehensive Insurance Hypothecated to ICICI Bank 
  • Proof of acknowledgment from Sub-Registrar along with declaration from lawyer that he has created charge along with proof of charge creation (wherever applicable)

INTERSET RATE & CHARGES FOR TRACTOR FINANCE

  • Indus Kisan interest details for various categories of loans (CC & TL) – Q2 2019-20

 

    • Production Loan (CC)
  • Max 13.25
  • Min 10.00
  • Mean 11.58

 

    • Investment Loan (TL)
  • 15.25
  • 10.10
  • 12.82

 

    • Hi-Tech Agriculture (OD)
  • 13.75
  • 10.00
  • 11.59

 

    • Hi-Tech Agriculture(TL)
  • 14.00
  • 10.50
  • 11.02

 

  • Documentation Fee:
  • for legal opinion will be charged as stipulated in Sanction Letter.

 

  • Processing Fee:
  • 1% of loan amount + Service Tax as applicable.

 

  • Schedule of service charges:

 

  • Annual Maintenance Charges:
  • Annual Maintenance Charge will be levied basis total sanctioned limit to customer (live accounts).

UptoRs. 10 lacs = Rs. 800+GST
> Rs. 10 lacs &< Rs. 25 lacs = Rs. 1500+GST
> Rs. 25 lacs &< Rs. 100 lacs = Rs. 2500+GST
> Rs. 100 lacs = Rs. 5000+GST

  • Penal Interest:
  • 18% p.a. on overdue amount payable along with interest

 

  • CERSAI Charges:
  • Rs. 550 plus service tax per non agri property for registering charge on CERSAI.

 

  • Prepayment Charges:
  • Nil*

 

  • Other Charges:
  • Charges including stamp duty , valuation charges and other incidental expenses will be borne by the customer at the actual.

 

  • Inspection Charges:
  • To meet expenses incurred towards annual visit to the farm, verification of Bank's charge on land records and performing annual review and will be levied in the last week of April every year for all accounts opened on or before February 28th /29th basis Sanction Limit.

Sanction Limit up to Rs. 10 lacs = Rs. 500+GST
> Rs. 10 lacs &< Rs. 25 lacs = Rs. 1000+GST
> Rs. 25 lacs = Rs. 1500+GST

* Nil prepayment charges in case of loan closure after 3 years of loan disbursement.

 

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