About Tractor Loan
Tractor demand is increasing as the tractor industry expands. Farmers and businesses are driving demand for tractors in order to mechanize the farming process. There are more than 25 tractor brands in India to meet this need. More farms and businesses are still unable to purchase a tractor due to financial constraints. Tractor loans are therefore the best alternative. It is offered for a variety of tractors, including mini tractors, utility 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.
The tractor loan interest rate ranges from 8% to 20%. Interest rates are calculated based on CIBIL ratings and collateral. These loan typically range 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? Tractor loans are available for both new and used tractors.
Overview of Tractor Loan
Tractor loans 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 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 This loan can be applied for by any Indian citizen.
Ø A single individual or a group of individuals can apply for a loan.
Ø This loan can be applied for by individuals or businesses.
Ø To be eligible for this loan, 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 loan 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 per cent 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.
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 this loan 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:
This loan has a low-interest rate because it is a priority sector loan. Because it is 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 are required.
Tractor loan banks
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 such as TVS Credits, SK Finance, HDFC Bank, SBI Bank, Kotak Mahindra Bank, Central Bank of India, Sundaram Finance Group, DCB Bank, Mahindra Finance, Cholamandalam, Tata Capital, MAS Bank, Shriram Transport Finance, Oriental Bank of Commerce, Indian Bank, and L&T Finance. You can get the finest loan for your needs with the lowest interest rates at TractorGyan.
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, EMI calculator for tractor loan, 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.