TAFE signs MoU with CUB
Tractors and Farm Equipments Limited (TAFE) and City Union Bank (CUB) on Friday signed a Memorandum of Understanding (MoU), to finance farmers buying TAFE products, Eicher and Masse Ferguson.
By PTI |
CHENNAI: With an aim of expanding financing of tractors to small farmers in the southern region, tractor manufacturer Tractors and Farm Equipments Limited (TAFE) and City Union Bank (CUB) on Friday signed a Memorandum of Understanding (MoU), to finance farmers buying TAFE products, Eicher and Masse Ferguson.
Mallika Srinivasan, director, TAFE and S Balasubramanian, director, CUB, signed the MoU.
Earlier, speaking to reporters, Balasubramanian said the bank's main aim was to increase lendings in the agricultural sector. The eligilbilty for farmers to obtain loans was that they should have a minimum of two acres in their name
"We aim to finance 5,000 tractors at an outlay of Rs 100 crore," he said, adding that the maximum repayment of the loan was seven years, and repayment was seasonal.Periods of natural disasters like flood or drought will be exempt from repayment.
Stating that the tractor market was looking up in the region, Srinivasan said that better irrigation facilities, willingness by farmers to welcome new technology and easy availability of loans were the driving factors.
Citing statistics, she said that the southern region accounted for 80,000 units of the 3.5 lakh tractors sold last year in India.
Throwing light on the domestic trends, she said that it was expected to grow at 5 percent next year.
However, the export market was progressing well. "At TAFE, we expect a 50 percent growth, while the growth till this July was 10 per cent," she said.
Last year, the company exported goods worth $55 million to different countries including Sri Lanka, Bangladesh, and US, she said.
Mallika Srinivasan, director, TAFE and S Balasubramanian, director, CUB, signed the MoU.
Earlier, speaking to reporters, Balasubramanian said the bank's main aim was to increase lendings in the agricultural sector. The eligilbilty for farmers to obtain loans was that they should have a minimum of two acres in their name
"We aim to finance 5,000 tractors at an outlay of Rs 100 crore," he said, adding that the maximum repayment of the loan was seven years, and repayment was seasonal.Periods of natural disasters like flood or drought will be exempt from repayment.
Stating that the tractor market was looking up in the region, Srinivasan said that better irrigation facilities, willingness by farmers to welcome new technology and easy availability of loans were the driving factors.
Citing statistics, she said that the southern region accounted for 80,000 units of the 3.5 lakh tractors sold last year in India.
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Throwing light on the domestic trends, she said that it was expected to grow at 5 percent next year.
However, the export market was progressing well. "At TAFE, we expect a 50 percent growth, while the growth till this July was 10 per cent," she said.
Last year, the company exported goods worth $55 million to different countries including Sri Lanka, Bangladesh, and US, she said.
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