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The vehicles financed under the ALLHV Scheme should essentially serve the purpose of transportation of agricultural inputs and outputs. Therefore, under the scheme, loans can be granted for purchase of brand new vehicles such as two wheelers including cycle, three wheeler carriages, jeep, van and such other light motor vehicles and heavy vehicles such as lorries/trucks for supervising agricultural operation/management of farm / estate and for transportation of agricultural produce/inputs, labour, etc.

  • The applicant should be an agriculturist, cultivating his own land or should be engaged in allied activities such as Dairy, Poultry, Sericulture, Fish Farming, etc.
  • The loans are to be permitted only to persons engaged in production and distribution of agricultural and allied commodities.
  • The applicant should possess a valid driving license. However, ALLHV loans can be sanctioned for purchase of 4 wheelers and heavy vehicles to eligible borrowers who do not have a valid driving license but are capable of engaging drivers possessingvalid driving license.
  • For financing Heavy Commercial Vehicles (HCV), the applicant should have minimum 15 acres of perennially irrigated lands.
  • Cost incurred towards Life Tax, Registration Charges, Insurance premium and other accessories shall also be considered for arriving at loan quantum.

NOTE: In respect of finance to commercial vehicles –

  • Applicant should posses a valid permit to run the vehicle.
  • Loans for MCVs/HCVs should be extended only to big farmers, State owned Corporations, State Forest Development Corporation etc.
  • Small Farmers are not eligible for loans for purchase of MCVs/HCVs.


For loans upto and including Rs. 1.60 lakh/- - Nil
For loans above Rs. 1.60 lakh/-

  • ALLHV loans other than Medium & Heavy Commercial vehicles (MCV/HCV) - 10%
  • FOR ALLHV – MCV & HCV – 25%

For loan upto Rs.1.60 lakh /-
Hypothecation of assets created out of our finance.

  • Hypothecation of assets created out of our finance.
  • Mortgage of landed properties.
  • For MCV/HCVs mortgage is compulsory.
Repayment Period

The loans are to be recovered in 3 to 5 years in monthly / quarterly / half yearly / yearly installments depending upon the income generation from the farm/estate.
In respect of MCVs/LCVs loans are to be repaid in 5 to 7 years in monthly/quarterly installments.

Second hand Vehicle ALLHV
  • The Vehicle to be purchased should not be more than 5 years old and should be free from encumberance.
  • Valuation report to be obtained from an approved valuer
  • The quantm of loan should not be more than 75% of the value of the vehicle as per valuation report or purchase consideration which ever is less.
  • The loan to be repaid in 3 years.
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Last updated on 17-04-2024 06:23 PM

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