SBI, VST Tillers tie up for financing farmers
08 Mar 2004
1
Hyderabad:
State Bank of India (SBI) and VST Tiller Tractors
Ltd have devised a new loan scheme called SBI-VST Shakti
for farmers as a part of the farm mechanisation programme.
The scheme offers the cost of the power tiller minus 5 per cent as margin with hypothecation of the tiller and mortgage of lands covering the loan or any other tangible security (50 per cent of loan amount). The current interest rate is 10 per cent per annum for a repayment period of maximum nine years for an amount of Rs 50,000 to Rs 2 lakh.
Mr S.K. Bhattacharya, Chief General Manager, SBI, who launched the scheme, said it was one of the several initiatives undertaken for farm mechanisation by the bank.
