Bank of Baroda Agriculture Loans: Financing Tractors & Heavy Agriculture Machinery, Know How to Apply

In a bid to boost agricultural productivity, Bank of Baroda has introduced tailored financing solutions for farmers, specifically targeting the acquisition of tractors and heavy agriculture machinery. Here's a comprehensive guide on the benefits, features, eligibility criteria, required documents, and associated fees and charges.

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Benefits:

Nil processing charges for Aggregate Loan up to Rs 3.00 Lakhs.

No inspection charges for Aggregate Loan up to Rs 3.00 Lakhs.

Low land and margin requirements.

Repayment plans structured according to the income flow of the borrower.

Features:

This financing facility is available for:

Purchase of new tractors.

Tractor-drawn implements.

Power tillers and other agricultural machines.

Also Read: HDFC Bank Tractor Loan: Get up to 90% Loan on Buying a Tractor, Apply Here

Eligibility Criteria:

Land Holding: Minimum 4 acres of irrigated land or corresponding acreage as per state land ceiling acts.

Tractor HP: Finance for tractors to farmers with land holdings below 6 acres of irrigated land, limited to horsepower up to 35 HP.

Documents Required:

KYC Documents (AADHAR, Voter ID, PAN Card, Driving License, etc.).

Passport-size photo.

Quotation/Invoice.

Land Records.

IT Return.

Also Read: SBI Kisan Samriddhi Rin: Get Up to Rs 50 Crore Agri Loan For an Easy Farming Operation

Fees & Charges:

Processing charges:

Aggregate Agriculture exposure up to Rs. 3.00 Lakhs: Nil.

Above Rs 3 Lakhs: 1% of the limit sanctioned (maximum Rs 100 lakhs).

Inspection Charges:

Agriculture exposure up to Rs. 3.00 Lakhs: Nil.

Rs 3 lakhs to Rs 10 Lakhs: Rs 250.

Rs 10 Lakhs to Rs 1 Crore: Rs 1000.

Above Rs 1 Crore: Rs 5000.

Most Important Terms & Conditions (MITC):

Margin: Minimum 25%.

Repayment Period: Linked with land holding, maximum up to 9 years.

Rate of Interest:

Up to Rs.3 Lakhs: One year MCLR + SP.

Rs.3 Lakhs to less than Rs.25 Lakhs: One year MCLR + SP + 1.25%.

Rs.25 Lakhs and above:

Loan period less than 3 years: One year MCLR + SP + 2.00%.

3 to 5 years: One year MCLR + SP + 2.10%.

Above 5 years up to 7 years: One year MCLR + SP + 2.15%.

Repayment Capacity: Quarterly/Half-Yearly/Yearly, based on the farmer's income flow pattern.

This initiative by Bank of Baroda aims to empower farmers by providing affordable and accessible financial solutions for the acquisition of essential agricultural machinery, further contributing to the growth of the agricultural sector.

Also Read: SBI Tractor Loan Scheme 2023: How to Apply? - Eligibility, Documents Required, Charges, & More