ANDHRA PRADESH

`Follow the contract while choosing beneficiaries'

BRAINSTORMING SESSION: The bankers and tractor dealers met to discuss the formalities for availing loans to buy tractors and agriculture implements, in Gulbarga on Tuesday.

BRAINSTORMING SESSION: The bankers and tractor dealers met to discuss the formalities for availing loans to buy tractors and agriculture implements, in Gulbarga on Tuesday.  

Tractor dealers asked not to present inflated quotations

Special Correspondent

GULBARGA: The Assistant General Manager of State Bank of India (Agri business), K.L. Gadiappanavar, on Tuesday, asked tractor dealers to follow the contract while selecting candidates for providing assistance for the purchase of tractors and agricultural implements and not to present inflated quotations at the time of loan sanction to the bank.

Speaking after inaugurating the bankers-tractor dealers' interactive meeting here, Mr. Gadiappanavar said the dealers have an important role to play in the selection of beneficiaries after taking into consideration their repaying capacity and ensuring that the beneficiaries fully comply all the conditions stipulated by the bank for availing the loans. According to the changed norms, tractor dealers have been given the responsibility of selecting the beneficiaries and submitting the proposals on behalf of the beneficiaries to the respective bank branches. As per the new arrangement, banks and dealers enter into a memorandum of understanding and the banks provide incentives to the dealers for selecting the beneficiaries. Mr. Gadiappanavar said that several instances of dealers submitting inflated quotations in respect to the supply of tractor-trailers and agricultural implements had come to the notice of the banks.

He told the dealers that the Reserve Bank of India had relaxed the service area conditions in extending loans to the beneficiaries.

The dealers can now collect the applications from the farmers within 40-km radius of the respective bank branches.

Mr. Gadiappavanavar said tractor loans can be extended to dry land farmers if they owned at least 50 acres of land. As per the norms stipulated by the bankers, 14 acres of wetland is equivalent to 50 acres of dry land to avail the tractor loans.

B. Vijayamohan, Assistant General Manager of the bank's business branch, welcomed the gathering.

Recommended for you