AMARAVATI: DCB Bank, a leading private sector bank, has set its focus on rural markets in Andhra Pradesh.
The bank is offering customised tractor loans to customers, which saw a growth in demand last year. DCB Bank is also on expansion mode in Telangana, Chhattisgarh, Karnataka, Madhya Pradesh, Maharashtra, Odisha and Rajasthan.
Taking the complete revival of the rural markets, the Bank is anticipating good returns from the rural segment. In fact its Q2 results have also pumped new energies to expand its rural footprint to report incremental growth in business. “Fortunes of the tractor loan business depend on the vagaries of the weather and the harvest season among other macro and micro variables.
As a recent Crisil report points out, in spite of the pandemic, tractor sales are up 12% in the first half of FY21. Good monsoon and higher crop production generally support farm incomes and this in turn provides a fillip to tractor demand,” said DCB Bank’s Head of Agri and Inclusive Banking Narendranath Mishra.
He explained that DCB Bank tractor loans come with unique features. He said that a farmer availing of the loan can customise loan repayments based on his or her cash flow. “The borrower can plan repayments in advance depending on the use of the asset and agricultural season. This is significant as a farmer’s income is variable and moves in tandem with the harvest season. Once the loan is approved, the Bank’s free SMS service reminds the customer about the due dates for loan repayment,” said Mishra.
He said that even farmers with one acre of agriculture landholding are eligible to apply for a tractor loan provided they have all the relevant documents. He said that the sale of tractors shows a heartening trend as it has posted positive growth in key markets. The tractor market is expected to remain buoyant in the months to come. “Demand for our tractor loans is particularly encouraging from the farming community” said Mishra. He said that they were also providing Kisaan Credit Card (KCC) and Gold Loan for semi-urban and rural customers.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *