Private sector Bank of Rajasthan, has signed a memorandum of understanding (MOU) with Mahindra & Mahindra one of the leading automobile & tractor manufacturer in India.

Through the latest agreement, farmers of Rajasthan would obtain loan for tractors & farm equipments at a lower interest rate.

Describing the foremost advantage of this scheme, a company official said that it would offers credit not only to bigger farmers but also to small and marginal farmers with a land holding of four acres as well.

The MoU will help farmers in Rajasthan to get benefit of tractor loan up to Rs. 10 lakhs at interest rate of 11.00 % p.a and for loan above Rs. 10 lakhs at a rate of 11.50 % p.a.

The lender has fixed repayment period of loan between 7 to 9 years. Apart from this, the dealer will also provide a special discount of Rs 5000/- to farmer.

The shares of Bank of Rajasthan closed today at Rs 48 on BSE, down 5% compared to previous close of Rs 50.