ZTBL Tractor Loan Scheme Comprehensive Guide to Easy Tractor Loans in Pakistan Update in 2024

ZTBL Tractor Loan Scheme Comprehensive Guide to Easy Tractor Loans

The Zarai Taraqiati Bank Limited (ZTBL) Tractor Loan Scheme has long been a reliable financial aid for Pakistani farmers, enabling them to acquire tractors through structured financing. Over the years, this scheme has facilitated the distribution of numerous tractors, significantly contributing to agricultural productivity. Although the number of tractors financed has decreased in recent years due to increased purchasing power, the ZTBL tractor loan remains a preferred option among farmers. Below is a detailed guide on the ZTBL Tractor Loan Scheme 2024, including its requirements, eligibility criteria, and step-by-step application process.

ZTBL Tractor Loan Scheme Comprehensive Guide to Easy Tractor Loans

ZTBL Tractor Loan Scheme Overview

ZTBL offers two primary schemes for tractor financing:

• Kissan Dost Scheme (KDS)
• Sada Bahar Scheme (SBS)

These schemes are designed to cater to the financial needs of farmers, providing them with an opportunity to acquire tractors by pledging their agricultural land. ZTBL tractor loans have distinct advantages over commercial bank loans, making them a popular choice among Pakistani farmers.

Requirements for ZTBL Tractor Loan Scheme

To apply for a ZTBL tractor loan, farmers must meet the following requirements:

1. CNIC Copy: A copy of the applicant’s National Identity Card.
2. Passport Size Photos: Four recent passport-size photographs.
3. Agricultural Land: A minimum of 5 acres is required for small horsepower (HP) tractors, while higher HP tractors require at least 12 acres of agricultural land.
4. Zarai Passbook: A passbook showing ownership of agricultural land.
5. Jama Bandi and Khasra Gardawari: Legal documents detailing the land’s ownership and cultivation history.
6. Average Crop Yield (Aost Bay): A record of the average yield of the crops grown on the land.
7. CIB Report: A Credit Information Bureau report ensuring that the applicant is not a bank defaulter.

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Terms and Conditions of the ZTBL Tractor Loan

Before applying, it’s important to understand the terms and conditions associated with the ZTBL tractor loan:

1. Tractor Loan Guarantee: The tractor’s registration will be jointly held in the name of the bank and the customer. Additionally, the customer’s agricultural land will be transferred to the bank’s name as collateral.
2. Mark-Up Rate: The current mark-up rate for ZTBL tractor loans is 19.50%.
3. Maximum Loan Amount: The maximum loan amount available is Rs. 2,500,000 (10 lac rupees).
4. Leasing Duration: The loan can be repaid over a period of either 5 or 8 years.
5. Down Payment: The customer is required to make a down payment of 10% of the total loan amount.
6. Loan Application Charges: A fee of 2% of the total loan amount is charged for processing the loan application.
7. Other Charges: Additional costs include tractor registration, a 1% insurance fee, and demand draft charges.
8. Installment Period: Installments are due every 6 months.

Step-by-Step Procedure to Avail ZTBL Tractor Loan

Here’s a detailed breakdown of the steps involved in obtaining a tractor loan through the ZTBL Tractor Loan Scheme 2024:

1. Account Opening: Visit the respective ZTBL branch to open an account.
2. Obtain Quotation: Get a quotation for the desired tractor model from a local dealer. Only locally manufactured tractors, such as those from Millat Tractors (Massey Ferguson), Belarus/Russian Tractor, and IMT, are eligible.
3. Loan Application File: After obtaining approval from the ZTBL branch manager, acquire the loan application file.
4. Land Transfer: The bank will initiate the process of transferring your agricultural land into the bank’s name as collateral for the loan.
5. Fee Payment: Pay the loan application fee, down payment, and registration charges.
6. Loan Sanction: Once the loan is sanctioned, the bank will issue a supply order for the required tractor to the respective company.
7. Intimation Letter: The tractor company will issue an intimation letter specifying the tractor delivery date.
8. Demand Draft: The bank will issue a demand draft for the tractor’s price, which will be sent to the company for delivery.
9. Tractor Delivery: On the mentioned delivery date, the company will deliver the tractor. After paying the delivery charges to the dealer, you can take your new tractor home.

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Conclusion

The ZTBL Tractor Loan Scheme 2024 offers a well-structured financial solution for farmers seeking to enhance their agricultural productivity through tractor ownership. By following the outlined procedure and meeting the necessary requirements, farmers can secure a loan that not only aids in acquiring a tractor but also promotes long-term sustainability in farming operations. Keep an eye on official ZTBL channels for any updates or changes to the scheme, and ensure that you are well-prepared to benefit from this valuable opportunity.

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