SBI Tractor Loan Scheme 2023: How to Apply? - Eligibility, Documents Required, Charges, & More

SBI's Tractor Loan Scheme is aimed at providing support to a wide range of applicants, including individuals, groups, institutions, and organizations, as well as both new and existing farmers. The primary goal is to facilitate the acquisition of tractors and their associated accessories, encompassing expenses such as insurance and registration charges.

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Key Features:

Loan Type: This is categorized as an Agriculture Term Loan.

Loan Amount: Applicants can avail themselves of a loan ranging from a minimum of Rs. 200,000 to a maximum of Rs. 2,500,000.

Margin Requirement: A 25% margin is necessary, calculated based on the overall cost of the tractor, including its accessories, implements, insurance, and registration charges.

Moratorium Period: The scheme does not offer a moratorium period.

Repayment Structure: Repayment follows a structured pattern with equated distributions of the principal amount, along with interest, spread over ten half-yearly installments.

Security Measures: Primary security involves the hypothecation of the tractor and its associated accessories. Collateral can take the form of land, gold ornaments, other approved liquid assets, or third-party guarantees.

Interest Subvention: No interest subvention is applicable.

Other Considerations: There are no additional aspects to be concerned with.

Eligibility Criteria:

This loan scheme is open to a broad spectrum of applicants, including individuals, groups, institutions, and organizations.

Both existing and new farmers, even those who may have existing banking relationships with other financial institutions, are eligible to apply.

The applicant should possess a minimum of 2 acres of agricultural land.

A CIBIL score exceeding 650 is a prerequisite for eligibility.

Also Read: Farmers Can Get 50 to 80% Subsidy on Purchasing of Agriculture Machinery Under SMAM Scheme, Apply Now!!

Documents Required:

To apply for the SBI Tractor Loan, applicants need to provide the following documents:

A fully completed application form.

A quotation for the tractor from an authorized dealer.

Proof of identity, which can include a voter ID card, PAN card, passport, Aadhaar card, or driver's license.

Proof of address, such as a voter ID card, passport, Aadhaar card, or driver's license.

Documentation validating the ownership of agricultural land and evidence of cultivation.

Any other documents as required as per the loan sanction.

Interest Rate:

The interest rate is set at 1-Year MCLR (Marginal Cost of Funds based Lending Rate) plus 3.30%.

Fees & Charges:

Loans up to Rs. 2,00,000: No fees

Loans exceeding Rs. 2,00,000: A charge of 1.40% of the loan amount plus GST applies.

Also Read: Good News- Upto 80% Subsidy on 108 Agricultural Equipment, Register Now!!

Commercial Testing Requirement:

To be eligible for the SBI Tractor Loan, the chosen tractor model must have undergone a commercial test, certified by approved organizations like the Central Farm Machinery Training and Testing Institute (CFMTTI) in Budni, Madhya Pradesh, or the Farm Machinery Training and Testing Institute (FMTTI) in Hisar, Haryana.

The SBI Tractor Loan Scheme is a dedicated effort to empower farmers and those involved in agriculture by facilitating access to vital agricultural equipment, further fortifying India's agricultural sector.

Frequently Asked Questions (FAQs)

1. Who is eligible for the SBI Tractor Loan Scheme?

The loan scheme is open to individuals, groups, institutions, organizations, new farmers, and existing farmers. To be eligible, the applicant must have a minimum of 2 acres of agricultural land and a CIBIL score above 650.

2. What can the loan be used for?

The loan can be used to cover the cost of purchasing a tractor and its accessories, including expenses such as insurance and registration charges.

3. What is the interest rate for this loan?

The interest rate for the SBI Tractor Loan Scheme is calculated as 1-Year MCLR (Marginal Cost of Funds based Lending Rate) plus 3.30%.

4. What is the repayment structure for this loan?

Repayment is structured with principal equated distribution, along with interest, over ten half-yearly installments.

5. Are there any specific organizations that need to certify the commercial testing of the tractor model?

Yes, to avail the tractor loan, the selected tractor model must have undergone a commercial test and be certified by approved organizations such as the Central Farm Machinery Training and Testing Institute (CFMTTI) in Budni, Madhya Pradesh, or the Farm Machinery Training and Testing Institute (FMTTI) in Hisar, Haryana.

Also Read: Tractor Loan EMI Calculator: Essential Guide to Financing The Tractor