SBI Tractor Loan Scheme

State Bank of India (SBI) has launched the Tractor Loan Scheme to farmers for farming purposes. Under this scheme, the farmers of the semi-urban and rural community can avail the loan for buying tractors and any farming equipment. This scheme facilitates hassle-free credit to the farmers. In this article, we look at the SBI Tractor Loan Scheme in detail.

Features and Benefits of the Scheme

The below listed are some of the features and benefits of the Tractor Loan Scheme:

The loan amount given by the bank will cover the cost of tractor, implements, accessories, insurance and registration expenses.
There is no upper ceiling in the quantum of the loan amount.
The processing will take 7 days from the date of submission of all required documents.
Under this scheme, the facility of monthly/quarterly and yearly repayment.
It also provides the concession of interest at 1% per annum by repaying promptly.

Eligibility Criteria

To avail the Tractor Loan from SBI, 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

Documents Required

The below listed are the documents/records need to be furnished at the time of applying for the loan:

Pre-sanction

Application form (Duly Filled)
3 latest passport size photographs
Documentary proof of landholding
Quotation of tractor issued by dealer to customer
Title search record from the panel advocate

Pre-disbursement

Executed loan documents (duly signed)
Original title deeds of property/land for mortgage
Cheques of Post Dated

Post disbursement

Registration Certificate (RC) book with hypothecation charge
Original invoice/bill that is issued by the dealer to the customer
Comprehensive insurance copy
Proof of landholding [Farmer must hold a minimum of 2 acres of irrigatable Land or 4 acres of dry land subject to economic viability]

Collateral Security

Registered or equitable mortgage of land for value not less than 100% of the loan amount

Margin Amount

Minimum 15% of the loan amount (includes the cost of tractor, accessories, implements, insurance and registration expenses) to be paid by the applicant.

Rate of Interest

For the MCLR based interest rates, the farmer applicants can contact the nearest SBI branch.
The current interest rate is 11.95% per annum.

Repayment Period

One can repay the loan amount in monthly, quarterly, half-yearly and yearly basis depending upon the borrower.

Processing Fees

Type	Charges Applicable
Prepayment	NIL
Part payment	NIL
Processing fee	0.5%
Duplicate No due certificate	NIL
Stamp duty	As per the bank norms
Late payment penalty	1% per annum on unpaid instalments
A penalty will be filed if failed to register the vehicle within one month from the date of delivery	2% for the period of default
Failed SI (per SI)	Rs. 253/-
Failed EMI (Per EMI)	Rs. 562/-

Application Procedure

To apply for the new Tractor Loan Scheme with SBI bank, the farmer applicant can apply either by visiting the nearest branch or by filling up a loan form on its official website. The applicant has to fill up the form with the appropriate details with the relevant documents. The bank officials will intimate the applicant for further processing.