Eicher Tractors, Dena Bank join hands for farm finance

Eicher Tractors, a unit of the Rs1,600-crore Eicher Group, has entered into an agreement with Dena Bank for the retail financing of tractors to Indian farmers. The MoU was signed by P Vijayan, director- finance, Eicher Group, and AS Barhat, general manager (priority sector), Dena Bank.

Under the terms of the MoU, against the norm of the 15 to 25-per cent margin money for tractors, Dena Bank would finance tractors manufactured by Eicher Tractors with a lower margin of 5 per cent for loans of upto Rs2 lakh and 10 per cent for loans over Rs2 lakh and upto Rs5 lakh. The land holding requirement has also been reduced from the existing 8 acres of perennially irrigated land to 4 acres, and loans are being provided for a seven to nine-year tenure.

On its part, Eicher Tractors is offering a benefit of a Rs5,000-discount on the invoice price of tractors to be passed on directly to farmers / borrowers availing of loans for purchasing tractors under the said scheme.

Eicher Tractors are pioneers in the industry with leadership in the 24 Hp segment and the first tractor manufacturer in the country, producing tractors from the 24 Hp to 61 Hp range. Eicher Tractors are also the only manufacturers to produce both air-cooled and water-cooled tractors in the country.