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ARF (Farm Mechanization)

1. Objective: The object of the scheme is to provide credit for the purchase of new tractor/new tractor for 2nd time/tractor rennovation/repair/replacement of spares/small tractors (GOI ) scheme/power tiller/thresher/power sprayer

2. Eligible borrower: Individual /groups

3. Minimum time for 2nd new tractor/renovation/repair: 3yrs from date of purchase of 1st tractor for 2nd new tractor & Above 5yrs and below 12yrs from the date of manufacture for renovation/repair.

4. Minimum land holding:

Sl	Scheme	Land Holding
1	Tractor	8 acres
2	Small Tractor	6 acres
3	Power tiller	5 acres
4	Threshers Power Sprayers	Minimum land holding to make the investment viable

5. Minimum hours of productive work/year:

Scheme	Hours
Tractor	1000
Power tiller	600
Threshers	315
Power sprayer	250
Small tractor	Minimum hrs to make investment viable

6. Maximum loan: Actual cost as evidenced by invoices/quotation/vouchers/bill. For repair loan is based on estimate of work from authorized service agency.

7. Margin:

Scheme	%ge of cost of machinary
1. New tractor Power tiller	15%
2. 2nd time new tractor/repair	30%
3. Small tractor (GOI) scheme	15%
4. Threshers/ Power sprayer	SF 5% MF 10% OF 15%

8. Repayment period:

Scheme	Years
1. Tractor/2nd time hector	9 yrs
2. Repair of tractor	5 yrs
3. Thresher/power sprayer	12 yrs
4. Small tractor (GOI)	12 yrs
5. Power tiller	7 yrs

9. Interest rate: Interest rate will be fixed by KCARDB from time to time, in accordance with the guidelines issued by RCS/NABARD/RBI

10. Security: As fixed by KSCARDB in the respective loan rules, in accordance with the guidelines issued by RCS/NABARD/RBI.

11. Reporting system: The monthly farm mechanization loan disbursement progress statement should be furnished to the apex bank in the prescribed formats.

12. Mode of Repayment: In equated installments.

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