Two Wheelers Loan To Farmers

1. Eligibility Criteria

a) Eligible
An agriculturist having land in his own name or his family member is eligible for the loan. The branch manager has to ensure that the applicant is a farmer which can be verified either from Kissan Credit Card or Fard Jamabandi or any other legal document. Applicant should not be defaulter of any loan.
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14921 dated 11.10.07)
b) Age The age of the borrower should not be less than 21 years at the time of application and not more than 60 years at the time of maturity (repayment of loan).
Proof of Age – Ration Card/Voter Card/School Leaving Certificate/Driving License.
c) Nominal Member The borrower shall be enrolled as Nominal Member of the bank. If he or she is already a nominal member of the bank, then there is no need for admitting him/her again, his/her nominal membership number may be used for the purpose of loan.
d) Number and
Type of Vehicle   
to be financed.
Only one new two-wheeler is eligible to be financed to a person. The old vehicle is not eligible to be financed under the scheme. The two wheeler may be of any make/model to be purchased from the authorized dealer/supplier of the Company.

2. Amount of Loan and Repayment

a) Maximum
The maximum amount of loan that can be sanctioned under this scheme is Rs.50000/- or 75% of the value of the two-wheeler, whichever is less.
b) Period of Loan The repayment period shall not exceed 5 years in any case.
c) Repayment of
The rate of interest shall be determined by the bank from time to time. Penal interest shall be charged @ 2% over and above the agreed rate of interest on defaulted amount for the defaulted period with the half yearly rests.
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14921 dated 11.10.07)
d) Repayment The loan will be repayable in monthly/half yearly installments resting 31st March and 30th September.

3. Documents required with Application Form

  1. Latest photographs of applicant and guarantors.
  2. Proforma Invoice of two-wheeler form authorized dealer/supplier.
  3. Copy of valid Driving License of applicant or his/her family member.
  4. Photocopy of Election Identity Card/RationCard/Telephone Bill/Electricity Bill/Kissan Credit Card or any other document which establishes the identity of the applicant and provide proof of residence.
  5. Nominal Membership form for applicant, guarantors or their nominal membership numbers.
  6. Photocopy of documents relating to collateral securities, if required particularly in the absence of guarantee.

4. Security of Loan

a) Hypothecation of
The charge of the Bank on two-wheeler in the form of hypothecation shall be registered with the concerned registration authority. The Branch Manager will ensure the registration of hypothecation of vehicle in favour of Bank with the registration authorities.
b) Guarantee/
The loan shall be financed against two sureties who shall also be nominal members of the bank. The Branch Manager will ensure the networth of sureties.
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14921 dated 11.10.07)
c) Collateral
In case of non-availability of surities the borrower will provide collateral security to the extent of 100% of the cost of two wheeler. The collateral security may be in the shape of mortgage,  pledge, lien assignment etc.

5. Disbursement of Loan

a) Third Party  
The cost of the two wheeler will be paid directly by the bank to the supplier or authorized dealer on the instructions from the applicant.
b) Precaution
The Branch Manager must ensure that the following documents are in proper order before disbursing loan to the borrower.
Nominal Membership of applicant as well as of guarantors
Residential proof of applicant
Proforma Invoice duly countersigned by applicant.
  Check the following security document if in order
Demand Promissory Note
Hypothecation Deed
Letter of Guarantee
Letter of Waiver
Letter of Lien and Setoff

6. Post Disbursement

a) Copy of Sale 
The Branch Manager should obtain copy of sale letter from the borrower within stipulated period. He should ensure that sale letter must be in the name of borrower and contain the name of the cooperative bank as financing institution.
b) Certificate of
Two wheeler should be registered within 90 days from the date of purchase, failing which 2% charges will be levied on the outstanding amount
The Branch Manager should obtain copy of Certificate of registration in the name of the borrower within 2 months of disbursement of loan. The certificate of registration must contain hypothecation in favour of the bank.
(amended vide RCS Circular letter No.Credit/CA-2/4CL/86/ 14921 dated 11.10.07)
c) Insurance of
Two wheelers shall be comprehensively insured for the face value covering all type of risks and the policy should be in the joint names of the bank and borrower with agreed bank clause.
d) Timely
The Branch Manager must ensure the timely repayment of loan by the borrower.