The Hindu Business Line : Same Deutz-Fahr ties up with SBI for new financing scheme

Under this tie-up, SBI would provide 90 per cent of the loan amount at 10.25 per cent for loans above Rs 2 lakh and 9.75 per cent for loans up to Rs 2 lakh with a tenor of 7-9 years, said Mr Kamal Bali, Managing Director, Same Deutz-Fahr India, addressing a press conference here today.

The scheme, called ``SBI-Same Tractor Finance'', would enable farmers to take a discount of up to Rs 5,000 per tractor and free accessories worth Rs 3,000 to Rs 5,000 depending upon the range of tractors, he said.

Farmers will also get a three-year warranty and a five per cent discount on all spare parts effective from the date of purchase for five years. The scheme will be marketed through same dealerships and SBI branches, especially the 6,000 rural and semi-urban branches.

" We are trying to promote the financing of tractors to farmers. In this context we have signed the MoU with tractor manufacturers so that the farming community gets the best treatment and also additional benefits with the tie-up. Currently, we have tie-ups with four companies, with six others in the pipeline", said Mr C. Sundarashyam, Chief General Manager, Development Banking, State Bank of India.

Priority lending to rise

STATE Bank of India hopes to end this financial year with advances in the priority sector amounting to Rs 3,500- 4,000 crore.

``Until end January, the priority sector lendings stood at Rs 1,900 crore, of which Rs 1,300 crore was on agricultural front,'' the SBI Deputy General Manager, Mr E.S. Balasubramanian, said.

The priority sector lendings account for 39.5 per cent of the total net bank credit, he said.