Eicher
Tractors, Dena Bank join hands for farm finance
Our Banking Bureau
31 July 2004
 Eicher
Tractors, a unit of the Rs1,600-crore Eicher Group, has
entered into an agreement with Dena Bank for the retail
financing of tractors to Indian farmers. The MoU was signed
by P Vijayan, director- finance, Eicher Group, and AS
Barhat, general manager (priority sector), Dena Bank.
 Under
the terms of the MoU, against the norm of the 15 to 25-per
cent margin money for tractors, Dena Bank would finance
tractors manufactured by Eicher Tractors with a lower
margin of 5 per cent for loans of upto Rs2 lakh and 10
per cent for loans over Rs2 lakh and upto Rs5 lakh. The
land holding requirement has also been reduced from the
existing 8 acres of perennially irrigated land to 4 acres,
and loans are being provided for a seven to nine-year
tenure.
On
its part, Eicher Tractors is offering a benefit of a Rs5,000-discount
on the invoice price of tractors to be passed on directly
to farmers / borrowers availing of loans for purchasing
tractors under the said scheme.
Eicher
Tractors are pioneers in the industry with leadership
in the 24 Hp segment and the first tractor manufacturer
in the country,  producing
tractors from the 24 Hp to 61 Hp range. Eicher Tractors
are also the only manufacturers to produce both air-cooled
and water-cooled tractors in the country.
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