Tractor Loan/Finance/Refinance

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Tractor Finance Schemes

Recently Asked Question about Loan:

Tractor loans fall within the category of agriculture loans. This loan can be applied by an individual or group of individuals. The repayment can be done by the entire group of individuals or by a single individual within the group. This loan follows the equated monthly installment (EMI) schedule.

Tractor loan is offered by several banks at a lower interest rate starting at 8.80% as on 18 Apr 2022. Banks/ FIs generally provide the loan upto 90% of value of the tractor.

Some common Documents are adress proof, identity proof, proof of land holiding etc and document require for tractor loan vary from bank/FI to bank/FI.

The best tractor financing programs require credit scores over 680 but there are programs in the marketplace for most credit profiles. Often, tractors can be financed with FICO scores all the way down to 500 based on cash flow, collateral, or other factors.

You can pay the EMIs on a monthly, quarterly and half yearly basis without any worry of financial burden.

The Tractor Supply Company® Credit Card requires a credit score of 640, at a minimum. That means you will need fair credit or better to get approved.

Convenience: Minimal documentation Reach: Strong network of branches in rural and semi-urban India Speed: Loan approval within 2 working days

There is no fixed minimum-maximum amount. Tractor loan amounts can be customized to suit your individual needs.

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About Tractor Loan in India

Tractor demand and popularity are increasing day by day as the tractor industry expands rapidly. Farmers and businesses are driving demand for tractors to mechanize the farming process. There are more than 25 tractor brands in India to meet this tractor requirement. Hence, to cover all farms and businesses that are still unable to purchase a tractor, tractor loans at low rates of interest are thus becoming helpful to meet their financial constraints. Tractor loans are therefore the best alternative. It is offered for a variety of tractors, including mini tractors, utility tractors, second-hand tractors, and heavy-duty tractors. Tractor loans are a type of credit granted by a bank to an individual. This loan will be considered for repayment with principal and interest in the future.

Tractor loans are the best way to increase the efficiency of farmers to work independently with advanced technology tractors, which in return increases their productivity and outcomes.

The tractor loan interest rate ranges from 8% to 20%. Interest rates for tractor loan are calculated based on CIBIL ratings and collateral. This loan typically ranges from one to seven years in length.

Many farmers choose Tractor loans because they allow them to purchase a tractor and return the loan in installments. Is it possible to get a loan for a used tractor? Yes, Tractor loans are available for both new and used tractors.

Overview of Tractor Loan

Tractor loans or tractor finance are part of the agriculture loan category. An individual or a group of individuals can apply for this 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 this loan. This is a secured loan that works similarly to a car loan. The financier will take control of the tractor if the borrower defaults.

Eligibility criteria for availing of Tractor Loan

There are precise requirements for obtaining a tractor loan, which may vary from one lender to the next. There are, however, some standard needs, which are listed below —

Ø tractor finance/loan can be applied for by any Indian citizen.

Ø  A single individual or a group of individuals can apply for a loan.

Ø  Tractor loans can be applied for by individuals or businesses.

Ø  To be eligible for tractor finance, you must have a stable income and be able to return it.

Key features of Tractor Loan

The following are the essential characteristics that distinguish tractor loans from other types of loans:

Ø  On these types of loans, the margin percentage starts at 15%.

Ø  In India, tractor insurance is required; it can be obtained through the lending financial institution or from any other approved agency.

Ø  The tractor and its accessories serve as collateral for this loan.

Ø  In addition, the bank or lender may seek extra security in the form of land if necessary.

Ø  The minimum tractor loan interest rate is 12 percent each year. 

Ø  Some banks allow payments to be made on a monthly, quarterly, or half-yearly basis.

Ø  The processing fee for this form of loan is normally 0.5 percent of the loan amount.

Ø  The loan amount might be up to 90% of the tractor's purchase price.

Ø  Competitive tractor loan interest rates, a variable duration of 12 to 84 months, and a variety of repayment options are all part of the payback terms.

Ø  Some banks provide customers coverage for accidental death or permanent total disability in addition to the insurance they already have.

Ø  Tractor loans are not only available to farmers; they are also available to anyone who can prove their legitimacy by completing the necessary paperwork.

Ø Not only new tractors but you can also get second-hand tractors on loan.

Benefits of Tractor Loan

The following are the main advantages of tractor loans -

Ø  Easy processing:

Tractor loans are secured loans that use the tractor as collateral. They are simple to process and get. As a result, the processing and payout of this loan are simple and rapid.

Ø  Apply online:

The applicant has the option of applying for tractor finance via the internet. Physical verification of the documents will take place. The payment is made and subsequent communications are handled via phone or email.

Ø Low-interest rate:

The tractor loan rate of interest is low because it is a priority sector loan. And as a part of the agricultural industry, the interest rates are lower than those for a vehicle loan. As a result, it is a more practical solution.

Ø  Simple documentation:

In the case of tractor loans, the documentation is quite conventional. Priority sector and secured loans are processed more quickly. To demonstrate the applicant's legitimacy, normal evidence of identification, address, and income is required.

List of banks providing tractor loans

Major banks that provide tractor loans to farmers and commercial customers can be found on TractorGyan. Loans are given out by lenders such as banks and non-banking financial corporations (NBFCs). We assist farmers in obtaining a loan from major lenders, which are as follows: 

You can get the finest tractor loan or tractor finance for your needs with the lowest interest rates at TractorGyan. Simply reach us to know more details about loans and interests provided by each bank.

Tractorgyan gives you the option of getting a Tractor Loan for your dream machine, and that too with all of the new schemes and deals that have just been added, as well as from a variety of companies and brands. Examine our list of partners to find the best tractor loan schemes and EMI calculators for tractor loans, and learn about the documentation requirements and other formalities. This may appear to be a difficult process, but Tractorgyan makes it much easier. 

You may easily use our services by filling up your contact information on our financing platform.

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