Bank of India 'Krishi Vaahan Scheme', Loan available up to 90% : Know How to Apply
This initiative by Bank of India is expected to play a crucial role in uplifting the agricultural community by providing them with affordable and accessible financing options for their transportation needs.
In a significant move to empower farmers and facilitate the growth of the agricultural sector, Bank of India has introduced the 'Krishi Vaahan' scheme. This initiative aims to provide financial assistance for the purchase of vehicles, both new and second-hand, along with those running on non-conventional energy.
Continue Reading:-
Key Features of the Krishi Vaahan Scheme:
* Attractive Interest Rates: The scheme offers an attractive interest rate to borrowers, ensuring affordability and financial flexibility.
* Up to 90% Financing: Borrowers can avail loans up to 90% of the ex-showroom price of the vehicle, easing the financial burden on farmers and individuals.
* No Collateral for Small Loans: For loans up to Rs. 25.00 lakhs, farmers can benefit from a waiver of collateral requirements, streamlining the borrowing process.
* Hassle-Free Documentation: The scheme promises a hassle-free documentation process, simplifying the loan application procedure for borrowers.
* Instant Approval: Borrowers can enjoy the convenience of instant loan approval, providing quick access to funds for their vehicle purchases.
* Dealer Incentives: Vehicle dealers collaborating under tie-up arrangements with the bank can benefit from attractive incentives and payouts.
Turnaround Time (TAT):
* Up to Rs. 160,000: 7 business days
* Above Rs. 160,000: 14 business days
Also Read: SBI Tractor Loan Scheme 2023: How to Apply? - Eligibility, Documents Required, Charges, & More
Quantum of Finance:
The quantum of finance varies based on the type of borrower and the type of vehicle:
* Farmers:
2-wheeler: Rs. 2 lakh
3-wheeler: Rs. 5 lakh
4-wheeler: Rs. 25 lakh
* Individuals, Proprietorship Firms, and Cooperatives:
Transport Vehicles: Rs. 25 lakh
*Corporate, Partnership Firms, including LLPs, FPO/FPC, and Institutions:
Transport Vehicles: Rs. 100 lakh
Purpose of Krishi Vahan Scheme:
The scheme is designed for the purchase of new vehicles, second-hand vehicles (up to 2 years old), and vehicles running on non-conventional energy, excluding those exempted from registration and tricycles.
Eligibility Criteria:
* Farmers and Individuals:
Maximum Entry Age: 65 years
* Proprietorship Firms, Corporate, Partnership Firms including LLPs, Institutions, Co-operatives:
Minimum 2 years of existence
* FPO/FPC:
Minimum 1 year of existence
Also Read: HDFC Bank Tractor Loan: Get up to 90% Loan on Buying a Tractor, Apply Here
Documents Required Before Applying:
KYC documents (identity proof and address proof)
Agricultural land holding documents for farmers
ITR/income certificate of the last three years for non-farmers
Quotation of the proposed vehicle
Rate of Interest:
Loan up to Rs. 10.00 lakhs: 1-Year MCLR + 0.80%
Loan above Rs. 10.00 lakhs: 1-Year MCLR + 1.30%
This initiative by the Bank of India is expected to play a crucial role in uplifting the agricultural community by providing them with affordable and accessible financing options for their transportation needs. The streamlined process and competitive interest rates make the 'Krishi Vaahan' scheme a commendable step towards supporting the backbone of our nation – our farmers.
