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Loan for Tractor

Tractor is a farm vehicle. Tractors have traditionally been used on farms to mechanize 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. 2.500 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 Loan under the scheme will be sanctioned by Central Loan Sanctioning Department (CLSD) upto Rs. 2.500 million and over & above by Head Office 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 with 3% rebate on timely repayment 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.