United Bank of India

• United Krishi Sahayak Yojana Scheme for Agriculture, Allied Activities and setting up of Agro Based projects like Cold Storages.
  
• Direct Agriculture and Indirect Agriculture Finance Schemes.
  
• United Gramyashree Yojana Scheme for providing short/medium term loans for various agricultural activities.

United Krishi Sahayak Yojana

Agriculture being the mainstay of rural economy, farmers need several support measures to increase food production. One of such measures which directly assists the farmers is farm mechanisation through extensive use of tractors and power tillers in tillage and post harvest operations. So far, small land holdings had been the main limiting factor for a farmer to become eligible for availing a tractor loan from the Banks. United Bank of India has come out with a farmer friendly scheme entitled United Krishi Sahayak Yojana to provide tractor/power tiller loans to farmers possessing smaller land holdings at lower margin and lower rate of interest under a tie-up arrangement with a few tractor manufacturing companies.

Unique features:

• For a tractor loan, a farmer to possess only 4 acres of irrigated land or 6 acres of non-irrigated land.
  
• A rural unemployed youth between 18-31 years of age having a tractor driving licence and possessing of only 2 acres of irrigated land can apply for a tractor loan as owner driver.
  
• A farmer possessing only 2 acres of irrigated land is eligible for a power tiller loan and an owner driver with 0.5 acre of irrigated land can apply for a power tiller loan.
  
• Margin
  10% for farmers
  15% for owner driver
  
• Interest
  8.75% for loans above Rs.25,000/ to Rs.1.00 lac
  9.50% for loans above Rs.1.00 lac
  
• Further reduction in rate of interest
  By 0.50% if the borrower comes under United Gramyashree Yojana
  specifications.
  By 0.25% if the borrower takes an LIC policy for the full value of loan and assigns it in favour of the Bank.
  

Security :

Mortgage or charge on land and hypothecation of tractor/ power tillers.

Repayment :

Loan shall be repaid in 7 years in quarterly instalments by the farmers and
in monthly instalments by the owner driver.

Insurance :

Comprehensive Insurance for tractor shall be taken by incorporating
therein bank’s hypothecation clause.

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United Gramyashree Yojana

United Bank of India is providing liberal financial assistance to farmers for agriculture and allied activities for last three decades. The Bank has introduced a new scheme entitled United Gramyashree Yojana as a measure of recognition to rural clientele both depositors as well as borrower farmers with good track record through multiple schemes of assistance to self and family members.

Unique Features:

Providing uninterrupted, quick and hassle free credit to appreciate and encourage good borrowers/depositors for diversified productive activities

A composite scheme for existing borrowers/depositors and their women family members for supplementing total family income

Boosting primary rural activities with special emphasis on Agriculture & Allied Activities

Highlights:

• Existing medium term forum borrowers with good track record for last three years can draw again fully, amount equivalent to the amount repaid earlier without providing further additional security.
  
• Women family members of such borrowers can also avail loan up to Rs.50,000/- for productive purposes on their simple recommendation and guarantee without any other security
  
• Disposal of loan proposals of women family members within seven days and will attract lower margin and interest rate
  
• Existing depositors with good track record maintaining an average balance of Rs.25,000/- or above for over last three years can recommend loan proposals which will be expeditiously dealt with.
• Concessional rate of interest will also be extended to borrowers, guaranteed by such depositors
  
• Such depositors can avail loan for themselves also under specified scheme at a concessional rate of interest
  

Purpose:

• Agriculture & allied activities with emphasis on minor irrigation, farm mechanization, horticulture and plantation, dairy, poultry, fishery, sericulture, biogas and other hi-tech agriculture
  
• Purchase of truck, mini-truck, jeep, pick-up vans, two wheelers for supervision, transportation & marketing of agriculture inputs and farm
• produces
  
• Setting up Agri-business and Agri-clinics
  
• Purchase of land for agricultural purpose
  
• Retail and small business
  
• Small & tiny industries and other self-employment avenues
  
• Education of children
  
• Repair/renovation/construction of dwelling house
  
• Loan against farm produce
  
• Any other productive scheme in rural areas

Area of Operation:

All the rural and Semi-urban branches in their respective service areas
In other areas with the approval of Head Office

Amount of Loan:

Maximum upto amount of the original loan repaid by the existing borrower without further security

Maximum upto Rs.50,000/- for women family members
Need based finance depending upon the scheme recommended/ guaranteed by the existing depositors stated above

Margin:

Rate of Interest:

Repayment:

• Loans are to be repaid over a period of 3-15 years depending upon the purpose of the loan
  
• Loan Pass Book in regional language is issued to each beneficiary