Fact: “Did You Know That?”
In India, a successful financing model is enabling farmers to purchase two and three-wheelers, increasing their productivity and reducing their environmental impact.
Did you know that…?
In Maharashtra, India, there is a scheme to finance farmers to purchase two and three-wheelers. To apply for the scheme, you need to meet certain conditions. The following table provides a closer look at these terms.
| Term | Definition |
|---|---|
| Purpose | To purchase brand new vehicles such as two-and-three-wheelers carriages for supervision of agricultural operations, effective management of the farm, estate, and transportation of agricultural produce, inputs, labor, etc. |
| Eligibility | The applicant should be a farmer cultivating his own land or engaged in allied activities such as dairy, poultry, sericulture, fisheries, etc. The applicant should possess a valid driver’s license or employ a driver with a valid one. The applicant or any family member should not be a defaulter to any bank or financial institution. |
| Age limit | For individuals 18 years and above. Maximum age at maturity of the loan should not exceed 70 years. |
| Income & land ownership criteria | Applicants should have a minimum annual net income of USD 1,210.00 from agriculture / allied activities / other sources and should own a minimum of 2 acres of perennially irrigated land or a minimum of 4 acres of seasonally irrigated land. |
| Margin | 25% of the cost of the vehicle plus RTO charges (Return To Origin). |
| Interest rate | 1 year MCLR +0.75% |
| Security | Loan amount up to 1930 USD: Hypothecation of vehicle. Loan amount above 1,930 USD: Hypothecation of vehicle, mortgage of land / third party guarantee. |
| Repayment | The entire loan, along with interest, is to be repaid within a period of 5-7 years. The repayment would be monthly/quarterly/half-year/yearly installments depending upon income generation or cash flow. |
If you would like more information, please go to the following link. There, you will find data about the insurance, other terms and conditions, and the paperwork requirements.
Conclusion
The financing model described in this article has proven to be an effective solution for farmers in India to purchase electric two-and-three-wheelers, enabling them to improve their productivity and reduce their environmental impact. This innovative approach has demonstrated that it is possible to drive the adoption of sustainable technologies and improve economic opportunities for rural communities worldwide.
Electric Two-and-Three-Wheelers: Steering the Mobility Revolution
Electric Two-and-Three-Wheelers: Steering the Mobility Revolution
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