Mumbai: Bank of Baroda has launched a number of new initiatives to prop up farm sector lending.

To begin with, the bank has signed a MoU with L&T John Deere Private Limited. Under the special farmer-friendly scheme, tractor finance will be available on easy terms according to which a special discount of Rs. 4,000 and door to door after sales services would be available to the tractor loanee farmers.

B.G. Baria, general manager of Bank of Baroda and J. P. Banerjee, chief marketing executive of L&T John Deere signed the MoU.

The bank has recently signed two similar MoUs with other reputed tractor manufacturers, with the objective of giving a boost to farm mechanisation activity. For this purpose, the bank is providing loans of upto Rs10 lacs at a very competitive interest rate of 9.25 per cent p.a. with 10 per cent margin.