Agricultural Machinery Loan

Agricultural Machinery Loan is a loan granted to those who are engaged in farming and agricultural related activities on a small/medium/commercial scale or to customers who are engaged in agricultural machinery rental businesses for the acquisition of agro-processing machineries and equipment (such as water pumps, generators, combine harvesters, tractors, coffee processing machines, etc.). This loan may also include the cost of spare parts.

The minimum equity contribution for a credit risk grade 1 or 2 applicants is 50% of the purchase price of the machinery to be bought.  For credit risk grades 3 and 4 applicants it is 60% and 70%, respectively.

If the customer offers additional collateral in the form of a building having estimated value equivalent to 50% of the loan amount, the bank may relax the required equity contribution.