Chennai, Sep 28 (UNI) Leading tractor manufacturer Tractors and Farm Equipments Limited (TAFE) and City Union Bank (CUB) today signed a Memorandum of Understanding (MoU) for tractor financing.
Talking to newspersons here, TAFE Director Mallika Srinivasan said "this MoU will enable the members of the dealer fraternity to facilitate convenient loan options for the members of the farming community".
Under the agreement, the CUB would finance the purchase of tractors manufactured under the brand 'Massey Ferguson' and 'Eicher'.
"The agreement will also enable us initially to sell about 5,000 tractors at an outlay of Rs 100 crore this year", she claimed.
Citing statistics, she said the southern region accounted for 80,000 units of the 3.5 lakh tractors sold last year in India.
Throwing light on the domestic trends, she said it was expected to grow at a rate of five per cent next year.
CUB Chairman S Balasubramanian said "the loan repayment period would be for seven years".
"As per the eligibility conditions, the farmer has to pledge a minimum of two-acre of his land for the loan", he said, adding "his repayment would be fixed only during the harvest period".
Mr Balasubramanian claimed that this loan option provided greater opportunities for the farming community.
"Networking of all our branches is complete and CUB is also expanding to newer locations to enhance reach", he said, adding "our excellent relationship with the farming community in all the three states will get a further fillip with this agreement".