Union Bank inks deal for tractor funding

Union Bank of India signed a memorandum of understanding for tractor financing with tractor manufacturer Same Deutz-Fahr on an all-India basis.

The MoU was signed by P.L. Gairola, general manager of Union Bank, and Arvind Kumar, head (west) of Same Deutz-Fahr, according to a release issued by Union Bank to the BSE today.

Under the arrangement, the tractor maker has agreed to offer discount up to Rs 5,000/- per tractor and free accessories worth up to Rs 5,000/- per tractor. "A discount of 5% on spare parts for two years from the date of purchase of tractor shall also be allowed," the release added.

The bank has revised the interest rate under the farm mechanisation scheme whereby interest will be 8.75% up to Rs 50,000/-, 9% above Rs 50,000/- to Rs 2 lakh and 10.75% above Rs 2 lakh up to Rs 5 lakh.