Oriental Bank Joins Hands With Escorts

New Delhi: Oriental Bank of Commerce (OBC) has joined hands with Escorts Ltd, a tractor manufacturer, for providing retail tractor finance to farmers. The bank will also offer credit facilities to authorised dealers of Escorts under a Channel Financing Arrangement. Small farmers too could avail finance from OBC for purchase of Escorts tractors as the minimum land holding eligibility criterion has been slashed to 2.5 acres. OBC would make available loans to the tune of 90 per cent of the tractor cost at interest rate of 10.75 per cent per annum for loan up to Rs 2 lakh and 11.50 per cent per annum for loans between Rs 2 lakh and Rs 5 lakh. The Channel Financing arrangement offers structured credit up to 91 days to the dealers at interest rate within a band of 10.5-12 per cent depending on the collateral offered.