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About Tractor Loan in India

Tractor loans in India help farmers and agricultural businesses have immediate funds to buy tractors.

Tractors are no longer mere farming machines. They are the resources using which farmers can attain the maximum possible productivity and best possible outcomes on the field. From seed sowing to carrying the harvested crop to the markets, tractors are helping farmers at every step.

This is why farmers who are equipped with quality and feature-rich tractors can generate better crops in a short time. However, buying tractors in India is not an easy task for every farmer. While many farmers of this nation are small-scale farmers, they might have issues finding adequate funds to purchase tractors in India. 

Tractor Loan Overview

Tractor loans or tractor finance are part of the agriculture loan category. They are offered by many leading banks, government-led financial bodies, and non-banking financial companies (NBFCs) across the country. Farmers can easily buy new tractors, mini tractors, electric tractors, and used tractors with finance on tractors.

An individual or a group of individuals can apply for a tractor loan. The payback can be completed by the entire group or by a single person inside the group. The equated monthly installment (EMI) schedule is used for tractor finance.The financier will take control of the tractor if the borrower defaults.

Tractor Loan Features and Benefits

1. Tractor loan interest rates vary according to the financing bodies from where you’re availing it. Some banks have fixed rates of interest on tractor loans while few will have floating rates. Hence, you must know it beforehand. 
2. Farmers should get tractor insurance before availing of a tractor loan. This is a mandatory requirement for it. 
3. Mostly, tractors and their related accessories are used as collateral for tractor loans. However, in certain cases, farming land can be used as collateral as well. 
4. Borrowers are generally required to make a down payment when purchasing a tractor. The down payment amount can vary according to the farmers and their requirements.  
5. The maximum loan amount that you can get for tractors is 90% of the total tractor price. 
6. Banks might charge a loan processing fee. The most commonly charged fee is 2%. 
7. Tractor Loan repayment terms should be understood carefully. These terms generally include the rate of interest on tractor loan, repayment tenure, and repayment options. 

How To Apply for a Tractor Loan Online on Tractorgyan?

Applying for a tractor loan with Tractorgyan is an easy job that you can complete in a fraction of a second. The simple and seamless tractor loan online application process is mentioned below.

1. Visit the Tractor Loan Page on the Tractorgyan Website
2. Check tractor loan eligibility criteria.
3. Check for the required tractor finance documents and collect all of them to start the application process 
4. Fill out the tractor loan online application form on Tractorgyan
5. Click on the submit button

That’s it! Then Tractor financing companies that partner with us will shortly connect with you. This is the basic process of applying for a tractor loan in India. That’s why we recommend getting the right information about ‘ Tractor Finance kaise kare by filling out the tractorgyan form and connecting with a tractor financing company near you.

Tractor Loan For Farmer Eligibility

Before you plan to get a loan on tractor for agriculture in India, you need to check your eligibility. You can avail finance on tractor only if:

1. You’re an Indian citizen 
2. For a tractor loan, You meet the minimum age criteria. Applicants should be between 18 and 65 years of age
3. You have enough income and repayment capacity. Banks will confirm whether you have a stable source of income to pay back the tractor loan. 
4. There is a good credit score and history to back you up. It’s measured on a scale of 0-900 Tractor financing is not available to farmers with poor credit scores as it leads to high interest rates. 
5. You have some assets to be used as collateral for the tractor loans in India. However, not every bank asks for collateral. 
6. You submit all the required tractor loan documents like address proof, income proof, and agricultural land documents correctly to the banks or government bodies. 
7. You apply for an appropriate loan amount. It shouldn’t exceed the total cost of the tractor. Also, you should be able to make some down payment before applying for the loan. 

Required Tractor Loan Documents

Providing relevant documents is a part of tractor financing. Different tractor finance companies may have different document requirements. However, the general documents that are required to avail of a loan on tractor for agriculture in India are mentioned below. 

• Identity Proof 

Farmers have to submit valid identity proof to verify that they are Indian citizens and are eligible for government-led or private banks’ financial help. The acceptable identity proofs for tractor loans are: 

1. Aadhar Card
2. Voter ID Card
3. PAN Card
4. Passport
5. Driving License
6. Aadhar Card
7. Govt. issued document + Photograph

As a tractor loan is only offered to people between 18 - 65 years, you need to present age proof as well. For this, acceptable documents are: 

1.  Marks Sheet with date of birth
2. Date of Birth Certificate 
3. Voter ID card 
4. PAN Card
5. Passport
6. Driving License
7. Aadhar Card