Chennai, July 25
Indian Overseas Bank (IOB) has signed a memorandum of understanding with the Coimbatore-based CRI Pumps Ltd for financing pump sets. Under the scheme, farmers will be allowed to buy CRI pump sets from IOB at a discount of 12 per cent. The bank and CRI Pumps will jointly identify farmers eligible for the scheme. Loans covering up to 80 per cent of the price of the pump will be given at a rate of interest of up to 9.5 per cent. For loans up to Rs 50,000, there would be no collateralIOB has tie-ups with other pump set manufacturers like Texmo Industries. It plans to enter into similar tie-ups with farm equipment manufacturers such as TAFE, New Holland and Escorts.