Tractor Finance

Just enter the loan amount of tractor you want to get financed and rate of interest. EMI Calculator automatically calculates the installment on reducing balance and it does not have any other processing fee.

Finance Tips

To make the agricultural land fertile through the use of upgraded tractors, manufactured by pioneers like Swaraj, Mahindra, ACE, Preet tractors etc, farmers are in seek of banks offering loan at lower interest rate. Hereby, we are providing the information regarding the schemes available, documentation proof, eligibility criteria needed by certain banks in a way the farmers can get benefitted.

Loan definition:

An arrangement in which a lender gives money to a borrower, and the borrower agrees to repay the money, usually along with interest, at some future point(s) in time.An arrangement in which a lender gives money to a borrower, and the borrower agrees to repay the money, usually along with interest, at some future point(s) in time.

Eligibility for getting loan:

If a person is applying for the loan, his loan will get sanctioned only if his eligibility criteria gets satisfied. The reason for checking the eligibility criteria is mainly for assessing a person whether he has the repaying capacity to make the full payment. Each bank has its own eligibility criteria. For example, HDFC bank provides loan for both agriculturalists as well as non-farmers,with the following eligibility criteria.
Minimum age-18Minimum age-18
Maximum age on date of funding-60yrsMaximum age on date of funding-60yrs
Income>Rs1 lacIncome>1.5lac
Requirement of minimum 3 acres of agricultural landA Telephone (Owned / PP Land line or Mobile) is mandatory

Documents Required:

Some of the documents are required for getting quicker approval for tractor loan, assessing the repaying capacity. The requirements in case of documentation differs with each bank .For example, ICICI bank requires the following pre-sanctioned as well pre-disbursement document
  • Filled-in application form
  • Two-latest photographs of all borrowers
  • Proof for signature verification - Passport /Driving Licence /Pancard /Bank's verification
  • Identity proof
  • Address proof
  • Constitutional documents
  • Quotation of tractor issued by dealer to customer
  • Proof of land-holding
  • Land-valuation report from empanelled valuer(wherever applicable)
  • Past loan track record of the customers

Pre-disbursement document:

  • Duly executed loan documents
  • Original Invoice issued by dealers to customers
  • Title search report from empanelled lawyer(wherever applicable)
  • Margin money receipt(Issued by the dealer to the customer as a token of acceptance to the margin money paid)
  • Mortgage deed in case of registered mortgage (wherever applicable)
  • Comprehensive Insurance hypothecated to ICICI bank
  • Proof of acknowledgement from sub-registrar along weith declaration from the lawyer that he created the charge along with the proof of charge creation (wherever applicable)

Loan schemes:

The procedures and offerings for loan differs with banks according to each bank's terms and conditions. Regarding L&T Finance ,tenure will be provided upto 7 years.If you consider Mahindra finance ,sanctioning of loan will be stress-free without mortgaging of land,while Magma Tractor loans provide loan amount upto 90-95% of the tractor price.

Equated Monthly Installment(EMI):

A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full

EMI calculator:

It gives you the payment schedule containing principal and interest rate break up in each EMI, thus providing you with effective interest and cost that you have to pay to the lenders .It mainly helps for comparing loan offers from lenders.

Online tools:

Like EMI calculator ,availability of online tools helps you to assess your eligibility for purchasing the tractor ,for which you have to provide your personal details ,income proof-for repaying capacity ,residential proof ,thus enabling you to know about the loan amount ,tenure ,monthly payment that includes documentation and processing charges .In addition to this ,if you select the tractor model and bank name, details will be displayed regarding the offers available at each bank ,loan amount along with EMI payment schedule ,tenure etc. With the aid of this tool, you can select the bank which provides loan at reasonable interest rate that economically suits you ,avoiding unnecessary hassle .This makes the customers more self-satisfied with quicker approval of tractor loan.