Bank signs MoU for financing tractors

In a bid to help the farmers purchase tractors at competitive price and to introduce new tractor companies to the farmers, the Malaprabha Grameena Bank has signed a Memorandum of Understanding (MoU) with the New Holland Tractor Company.

Chairman of the bank B S Surendra and deputy general manager of the New Holland Tractors Company Ajay Aneja signed the MoU on Monday at Dharwad.

Surendra said that farmers owning six acres of irrigated land or 15 acres of dry land will be eligible for the bank's finance to purchase the tractor.

The bank will finance 90 per cent of the total cost of the tractor. On its part the New Holland Tractor Company will give a two-year warranty and five free services and also bear the registration expenses.

The scheme is expected to help small farmers go for mechanised agriculture enabling them to purchase tractors.

Ajay Aneja said that the New Holland Tractor Company topped the list of tractor manufacturers in the world. The company, which earlier manufactured Ford Tractors, began manufacturing tractors with 35-75 HorsePower from 1995.

In many countries, tractors with 480 HP engine produced by New Holland were in use. Ajay said that the company aimed at selling 1,000 tractors in Karnataka this year.