Andhra Bank signs MOU with HMT tractors

Hyderabad, Jun 13 (UNI) Andhra Bank today entered into an MoU with HMT Tractors to provide loans to farmers who wanted to buy tractors.

The MoU was signed by Andhra Bank Chairman and Managing Director K Ramakrishnan and Chief of Operations, HMT Tractors. S K Sarma here.

Speaking on the occasion, Mr Ramakrishnan said the MoU would enable farmers to purchase tractors with 15 per cent down payment and 10 per cent interest, upto a ceiling of Rs five lakh.

He said there was no need of collateral security upto the limit of Rs 3.50 lakh and the repayment tenure of nine years.

Stating that the bank was proposing to finance a minimum of 300 tractors with a total financial outlay of Rs 15 crore during 2006-07, Mr Ramakrishnan said farmers owning three acres of double cropped land or six acres of single cropped land were elegible for loans.

Mr Sarma said HMT would provide Rs 4,000 discount to farmers who approached through the bank and offered one year warranty to the vehicle from the date of delivery.

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