How Apply for Tractor Loan in 2021 At Low Interest Rate

By | September 18, 2021

Tractor Loans At Cheapest Interest Rates in 2021 – A large majority of the Indian population lives in villages that are largely involved in agriculture and agribusiness. Or, we can say in a country whose economy is primarily reliant on agriculture, a tractor’s job is critical to not only farmers but the entire sector. Tractor loans can help you get the money you need, whether you’re a person or a corporation interested in agriculture.

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Best Finance Companies and Banks to Get Tractor Loan in 2021

Bank Of Baroda Tractor Loan Interest Rate

We put Bank Of Baroda in first position because this bank provides tractor loans at the cheapest rate. BOB provides tractor loans at Interest Rate of  8.80% to 9.80%. This interest rate is updated on 17 Sep 2021. 

Highlights of BOB Loan on Tractor

  • Interest Rate as on 17 Sep 2021 – 8.80% – 9.80%
  • Loan Amount – Loan amount varies according to model of tractor and brand. 
  • Loan Period – Maximum 9 years
  • Required margin – Minimum 10% of Cost of the vehicle & Implements
  • Loan Processing Fee – 2% to 3% of loan amount

Bank Of Maharashtra Tractor Loan Interest Rate

Bank Of Maharashtra is on second number in our list for Tractor Loan this is because this bank provides tractor loan at an interest rate of 8.90% which is pretty similar to BOB bank with a minimal difference. 

Highlights of Tractor Loan from Bank Of Maharashtra 

  • Interest Rate as on 17 Sep 2021 – 8.90%
  • Loan Amount – Maximum Rs 10 lakhs 
  • Loan Period – Maximum 7 years
  • Required margin – 25% of vehicle cost 
  • Loan Processing Fee – 2% to 3% of loan amount

Central Bank Of India Tractor Loan Interest Rate

Interest Rate of Tractor Loan in Central Bank Of India varies between 8.80% to 10.30%. This interest rate was last updated on 17 Sep 2021.

Highlights of Loan for Tractor from Central Bank Of India 

  • Interest Rate as on 17 Sep 2021 – Varies between 8.80% to 10.30%
  • Loan Amount – The CBI provides loan up to 90% of value of the tractor 
  • Loan Period – Maximum 9 years
  • Required margin – 20% of vehicle cost 
  • Loan Processing Fee – 2% to 3% of loan amount
  • Repayment Charges – Charges varies according to bank’s police

Punjab National Bank Tractor Loan Interest Rate 

Punjab National Bank provides Tractor Loan on a minimum Interest Rate. This rate starts from 8.35% but it goes up to 10.70%, that’s why we put this bank on the third number in our list.  This interest rate was updated on 16 Sep 2021. 

Highlights of Loan for Tractor from PNB 

  • Interest Rate as on 17 Sep 2021 – Varies between 8.35% to 10.70%
  • Loan Amount – PNB provides loans according to the needs of Customers.  
  • Loan Period – Maximum 9 years
  • Required margin – 15% of vehicle cost 
  • Loan Processing Fee – 2% to 3% of loan amount
  • Repayment Charges – Charges varies according to bank’s police

South Indian Bank Tractor Loan Interest Rate 

South Indian Bank is also popular for its minimal interest rate for Tractor Loan. This bank provides Loan on Tractor  at 9.05% to 10% interest rates. This rate last updated on 15 Sep 2021.

Highlights of Loan for Tractor from South Indian Bank 

  • Interest Rate as on 17 Sep 2021 – Varies between 9.05% to 10%
  • Loan Amount – Maximum Rs. 75 Lakhs   
  • Loan Period – Maximum 7 years
  • Required margin – 10% of vehicle cost irrespective of collateral Security
  • Loan Processing Fee – 2% to 3% of loan amount
  • Repayment Charges – 2% of prepaid amount

Eligibility Criteria to get A Tractor Loan 

Tractor loans are available from a variety of lenders to both farmers and non-farmers. The following are the eligibility conditions that must be met in order to obtain a loan from the lender:

Farmers’ Eligibility Criteria

  1. Applicants must be at least 18 years old to apply.
  2. The maximum age limit will be 60 years old as of the financing date.
  3. A minimum of 3 acres of agricultural land must be owned by the applicant.
  4. The borrower must have a minimum annual income of Rs.1 lakh.

Non-Farmers’ Eligibility Criteria

  1. To be eligible for a tractor loan, the applicant must be at least 18 years old.
  2. The applicant’s maximum age, as of the financing date, must be 60 years old.
  3. The applicant’s annual income must be at least Rs.1,50,000.
  4. A telephone line should be required of all applicants.

Documents Required to Get a Tractor Loan 

  • Proper filled Application form
  • 2 recent photographs of the applicant. (photographs should not be older than 3 months)  
  • Signature verification proof – Applicants can use their driving licence, passport, PAN card, or bank’s verification as a signature proof. 
  • Proof of residence for the current address of the applicant. 
  • Identity proof of the applicant. 
  • Landholding documents on the name of applicant. 
  • Constitutional documents 
  • Quotation of the tractor that is issued by the registered dealer of that brand. 
  • Land valuation report 

Benefits of Getting a Tractor Loan 

  1. Financial Solutions That Are Tailored – You can receive a tractor loan that matches your personal or commercial demands based on your qualifications.
  1. Get a loan for a new or used tractor – Get a customised tractor loan to buy a new or used tractor that meets your needs.
  1. Interest Rates That Are Attractive – Take advantage of low-interest tractor loans from a number of lending companies and banks. The favourable interest rates offered by these organisations and banks are specifically tailored to your needs and repayment capabilities.
  2. Tenure of Repayment Variable – When taking out a tractor loan, several banks and finance businesses offer payback terms of up to 60 months or more. You can make EMI payments on a monthly, quarterly, or half-yearly basis without incurring any financial hardship.
  3. Process of Documentation That Isn’t Inconvenient – With the rapid tractor loan application process, you’ll get a lot of information in a short amount of time. When you apply for a tractor loan online with some banks and financing organisations, the entire procedure is paperless, and all you have to do is submit a soft copy of your documentation to get started.
  4. Quick processing and disbursement – The tractor loan amount is approved instantaneously and quickly deposited to your bank account based on your documents and eligibility. This ensures that you acquire a tractor loan right away and don’t have to wait long. 
  5. Assistance with Tractor Purchase – After completing the tractor loan application procedure, get personal assistance for people looking to buy a new or used tractor.

When applying for a tractor loan, there are four things to think about

Before you apply for an agriculture loan, there are a few things you should do:

1. Have a well-thought-out business plan

There’s a 99 percent chance your loan will be denied if you simply walk up to a lender and say, “I need funding for my farm business.” On the other hand, a proper business plan shows the lender that you know what you want to do, where you want to invest, how you will invest, and how you will repay the loan. Make sure your business plan includes information about your background, mission, goals, and objectives, as well as a marketing strategy.

2. Make certain your financial statements are in order.

This is a crucial stage because all lenders will want to know if you will be able to repay the money you borrowed from the bank. Any lender you contact will analyse your financial documentation, such as your income statement, cash flow statement, farm balance sheet, and business history, to determine your financial ability to repay the loan.

3. Have your collateral on hand.

Collateral refers to the assets you hold that a bank can use to recoup money if you default on a loan. You must have a valuable asset to secure the loan. If you are asked, “What assets can you pledge?” make sure you have an answer prepared. The likelihood of your loan being granted increases if you have a non-farm asset worth the amount.

4. Be ready to answer general queries.

Even if you think this is self-evident, don’t take it for granted. The lender may decide if your business plan will be successful or if you will be able to repay the loan based on how you respond to general inquiries such as qualifications and previous experience. As a result, if you want to make a strong first impression on a lender, you must be prepared to answer general queries.

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