Date:13/04/2004 URL: http://www.thehindubusinessline.com/2004/04/13/stories/2004041301411700.htm

Back SBT tractor loan scheme

Our Bureau

THIRUVANANTHAPURAM: The State Bank of Travancore has launched a special loan scheme for the purchase of tractors.

Called the `tractor special loan scheme', the initiative is targeted at farmers, non-governmental organisations, agro-business centres and so on. As part of this initiative, the bank will establish partnerships with tractor manufacturers, according to a bank press release.

Those who apply for a loan under this scheme should possess a minimum of four acres of agricultural land. However, this condition had been waived in the case of farmers with other sources of income that would enable them to service the debt.

Agro-clinics and agro-business centres had also been exempted from this condition, the release said.

The interest rate on loans below Rs 3 lakh will be 10.5 per cent, while it will be 11 per cent for loans above this amount. The applicant will have to bear a margin of 10 per cent of the value of the tractor, accessories and implements, while the manufacturer will bear the cost of comprehensive insurance for the first year. The loans can be repaid in seven to nine years.