Mobilink Bank provides a specialized tractor loan program designed to support farmers and agricultural business owners in purchasing tractors and machinery. This program aims to boost agricultural productivity by offering flexible financing options.
Table of Content
Eligibility Criteria
To be eligible for the Mobilink Bank Tractor Loan, applicants must be between 21 and 60 years old and have at least two years of business experience. A valid CNIC/SNIC is required, and applicants must not have any default history with financial institutions or public utilities. Furthermore, the applicant must have resided or worked in the designated cities for at least one year if the residence is owned, or a minimum of two years if rented.
You May Also Read: JS Smart Roshni Solar Solution Financing Program Recent Update
Program Details
- Loan Amount: 50% of the tractor price, up to PKR 3 million.
- Loan Tenure: 1 to 10 years with half-yearly repayments.
- Down Payment: 10% to 50% of the tractor price.
- Markup Rate: 39.9% per annum.
- Insurance Rate: 0.5%.
- Processing Fee: As per the bank’s Schedule of Charges (SOC).
Required Documentation
Applicants must submit various documents to apply for the loan. These include a valid CNIC/SNIC, one recent passport-size photograph, a valid agricultural passbook in the applicant’s name, and proof of land ownership (Fard Malkiyat) and self-cultivation (Khasra Gardawari). Additionally, they need to provide land schedule rates attested by revenue authorities, a genuineness certificate of the agricultural passbook issued by ADLR/Tehsildar, two references, a quotation or rate list of the tractors, proof of business or an undertaking for running a business, and the latest paid utility bill for the business place or residence, if available.
You May Also Read: Monthly and Quarterly Payments under BISP Programs Explained
Collateral and Security
The loan is secured by the bank’s charge on the agricultural passbook and joint registration of the tractor with Mobilink Bank under a Hire Purchase Agreement (HPA). This ensures the bank’s investment is safeguarded while providing the borrower with the necessary machinery.
Repayment and Financial Management
The loan repayment schedule is flexible, with a tenure ranging from one to ten years, paid in half-yearly installments. The markup rate is set at 39.9% per annum, making it crucial for applicants to manage their finances effectively to benefit from the program.
You May Also Read: Unlock Solar Energy Potential with the Alfalah Green Energy Loan Program
Conclusion
Mobilink Bank’s Tractor Loan program is an invaluable resource for farmers and business owners seeking to invest in agricultural machinery. With detailed eligibility criteria, a comprehensive list of required documents, and a well-structured repayment plan, this program ensures that borrowers can efficiently enhance their agricultural operations and productivity.