Loan for Tractor

Tractor is a farm vehicle. Tractors have traditionally been used on farms to mechanise several agricultural tasks. Agriculture implements are to be mounted on the tractor and it may also provide a source of power if the implement is mechanized. Farm tractor is used for pulling and pushing agriculture machinery. It is used for ploughing, tilling, disking, harrowing, landscape maintenance, moving or spreading fertilizer, clearing bushes and planting fields.

Keeping in view the above benefits, Bank is providing credit facilities to farmers for the purchase of tractor.

Terms & Conditions

Operational Jurisdiction

All branches of ZTBL

Eligibility Criteria

Farmers having appropriate self-owned & self-possessed agri. land to cover the feasibility of tractor loan are entitled to avail the facility of loan for purchase of new tractors and vehicles for transport of agriculture produce from farm to market etc.

Documents required

CNIC Copy, Loan Case File embedded in the system, Agri. Pass Book/Fard Jamabandi & 2 recent photographs

Maximum Loan Limit

Rs.1.500 million per borrower/party.

Collateral

The borrowers will provide security/collateral of the loan as per Bank’s policy.

Disbursement of Loan

The loan for farm transport vehicle is disbursed by issuing a pay order/demand draft in favour of the manufacturer/dealer from whom the borrower has obtained quotation.

Registration of Tractor

Tractor will be jointly registered on the names of the Bank & the borrower and will be comprehensively insured from “A” rated insurance company.

Equity Contribution

10% of the loan amount will be deposited by the borrower as self-contribution which will be adjusted towards tractor price.

Cost of Credit

As per Bank’s Rules

Sanction of Loan

The loan would be sanctioned by the CLSD upto Rs.1.000 million and Rs. 1.200 million by Zonal Chief and Rs. 1.500 million will be sanctioned by Zonal Credit Committee.

Repayment Schedule

Loan will be recovered within 08 years in half yearly installments commencing six months after 1st disbursement of loan.

Rate of Mark Up

The prevailing Bank rate of mark up on development loans is applicable.

Insurance

Premium on tractor loan will be charged @ 1% (inclusive all taxes and levies) of every tractor loan in an individual case.

Utilization/Monitoring

Strict monitoring would be exercised by ensuring checking of utilization by the MCO in 100% cases and sample checking of utilization by the Manager, Zonal Manager (Recovery) and Internal Auditor of the Bank. In case of mis-utilization the loan be recalled in lump sum as per Bank policy.



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