Tractor Loan- Process, Eligibility & More.

Tractor loans are classified as agricultural loans. An individual or a group of individuals may apply for this loan. The repayment can be made by an entire group of people or by a single person within the group. This loan is structured using the equated monthly installment (EMI) method. This is a secured loan, similar to a car loan. In the event of a default, the financier will take possession of the tractor.

How to Avail Tractor Loan

• To obtain a tractor loan in India, follow the simple steps outlined below:
• You must meet the eligibility requirements.
• You must have all the necessary documents on hand to begin the application process.
• You must approach banks/financing institutions.
• Finally, you will have to choose between the bank's interest rates and EMIs for repayments.

As a result, you're ready to go. But, in practice, are these steps as simple as they appear? Let us investigate.

Criteria for Obtaining a Tractor Loan

There are specific eligibility criteria for obtaining a tractor loan, which may vary from lender to lender. However, some standard requirements are as follows -

• Any Indian citizen may apply for a tractor loan.
• A loan can be obtained by a single person or by a group of people.
• This loan is open to both individuals and businesses.
• To obtain this loan, income stability and repayment ability must be established. A credit score of 550-900 is considered to be good.
• To be eligible for this loan, you must own at least 2 acres of land.

Documents Required to Obtain Tractor Loan 

The following are the primary documents required to obtain a tractor loan in India:

• The Aadhar Card (i.e. Address proof)
• Age certificate (loans are only available to candidates who are at least 18 years old).
• Pan Card (photo identification) and documents proving mortgage ownership
• In addition to these documents, you may require a copy of the ITR (Income Tax Return) filings.

Also Read: PM KISAN Tractor Yojana: Get 50% Subsidy on Tractors Under This Scheme; Apply Here

Some Indian Banks That Provide Tractor Loans

HDFC Bank Tractor Loan

As a loan, HDFC Bank provides farmers with a total of 90% of the tractor's purchase price. Furthermore, some of the notable features of the loan provided by HDFC bank are:

• A 2% processing fee is charged as a minimum.
• There is a 4% prepayment fee if you pay within 12 months of the date of disbursement, and a 2% prepayment fee after that.

SBI Bank Tractor Loan

• If you own 2 acres of land, SBI Bank will give you a tractor loan (minimum). Furthermore, some notable characteristics of an SBI loan include:
• The mortgage value in this case is equal to the tractor's purchase price.
• A one-time fee of 0.5 percent is charged.
• The tractor and accessories that were financed by the bank must be insured through some kind of insurance plan.

Axis Bank Tractor Loan 

Axis Bank provides tractor loans under the following terms:

• The application requires a minimum age of 21 years.
• The applicant's maximum age from the date of disbursement should be 75 years.
• To begin the process, a minimum of three acres of land is required.

To read more about banks that provide tractor loan click on the link mentioned below. 

Also Read: Banks that Offer Tractor Loans at Cheap Rates in India