SBI Tractor Loan Vs HDFC Tractor Loan: Analyse Which Tractor Loan Scheme is Best for the Farmers
The comparison between SBI's Tractor Loan Scheme and HDFC Bank's Tractor Loan Scheme highlights the key features, benefits, and differences between the two offerings.
When it comes to financing agricultural machinery like tractors, two prominent players in the banking sector stand out: SBI and HDFC Bank. Both offer tailored loan schemes aimed at supporting farmers and agricultural enterprises in acquiring the equipment they need. Let's delve into a comparative analysis of SBI's Tractor Loan Scheme and HDFC Bank's Tractor Loan Scheme to understand their key features, benefits, and suitability for prospective borrowers.
SBI Tractor Loan Vs HDFC Tractor Loan
SBI Tractor Loan Scheme
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.
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.
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.
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.
Also Read: SBI Tractor Loan Scheme 2023: How to Apply? - Eligibility, Documents Required, Charges, & More
HDFC Bank Tractor Loan Scheme
Farming and agricultural operations are the backbone of our nation, and to support the hardworking farmers and businesses that rely on tractors for their daily work, HDFC Bank introduces the Tractor Loan. This financial offering is more than just a loan; it's a partner in progress, designed to make your journey in agriculture smoother and more efficient.
Tractor Loan Features:
Loan Amount:
Secure up to 90% of the tractor's cost.
Interest Rates:
Enjoy highly competitive interest rates and processing fees.
Tenure:
Choose a loan repayment period ranging from 12 to 60 months.
Loan Processing:
Experience hassle-free documentation and fast loan disbursal.
Flexible Repayment Options:
* Various types of loans are available, including loans for the purchase of new or used tractors and farm equipment.
* Loans can be obtained with or without land mortgage, depending on your preference.
* Loans are available based on criteria such as the Registration Certificate, Repayment Track Record, or Income Proof.
Insurance:
* Benefit from insurance coverage, including Asset Insurance and Life Insurance.
* Credit Shield is an insurance policy that covers your outstanding loan in the event of accidental death or permanent disability.
Tractor Loan Eligibility:
CRITERIA:
Minimum age: 18 years
Maximum age: 60 years
Minimum Annual Income: ₹1 lakh (for Farmers) and ₹1.5 lakhs (for the Commercial segment)
Tractor Loan Fees & Charges:
Here is a comprehensive list of all the fees and charges associated with the HDFC Bank Tractor Loan:
Processing Fee: 2% of the Loan Amount
PREMATURE CLOSURE CHARGES:
* 6% if closed within 6 months from the date of disbursement on the principal outstanding
* 4% if closed after 6 months and before 12 months from the date of disbursement on the principal outstanding
* 2% if closed after 12 months from the date of disbursement on the principal outstanding
* For Micro and Small Enterprises (MSE) borrowers, no premature closure charges will apply for all floating rate loans and for Fixed rate loan facilities up to Rs. 50 Lakh.
* For MSE customers, a 2% takeover charge will be applicable in case of loan takeover by another Bank or Financier. The Bank reserves the right to enquire or ask for documentary proof of the source of funds for loan closure requests.
* Loan Cancellation: In case of cancellation, Interest charges will be borne by the customer. Processing Fee, Stamp Duty, and RTO charges are non-refundable and would not be waived or refunded in case of loan cancellation.
* Delayed Instalment Payment Charge: 1.50% per month (18% p.a.) plus applicable government taxes on overdue instalment amounts.
* Legal, Repossession & Incidental Charges: Actuals
* Stamp Duty & Other Statutory Charges: As per applicable law
* CIBIL Charges (only on request): Rs. 50/- per instance
* Duplicate No Due Certificate / NOC: Rs. 500/- per instance
* Duplicate Amortization Schedule Charges: Rs. 200/- per schedule
* Cheque / ECS / SI Swap Charges: Rs. 500/- per instance
* Collateral & ACH Documentation Charges: Rs. 750 per case
* Loan Rescheduling / Rebooking Charges: Rs. 1000/-
* Cheque / SI / ECS Return Charges: Rs. 550/- per instance
* Documentation Charges (For Agri Mortgage and Used Tractor Valuation Cases):
* Documents Charges (For Agri Mortgage): Rs. 1500
* For Used Tractor Valuation Cases: Rs. 1500
Also Read: HDFC Bank Tractor Loan: Get up to 90% Loan on Buying a Tractor, Apply Here
Tractor Loan Documentation:
When applying for the HDFC Bank Tractor Loan, you'll need to provide the following documentation:
Identity Proof:
Any one of Voter ID, PAN Card, Driving License, Passport, Aadhaar (with customer consent)
Address Proof:
Any one of Voter ID, Driving License, Passport, Aadhaar (with customer consent)
Proof of Signature Verification:
Any one of Passport, DL, PAN Card, Bank Verification, Tehsildar Certificate
Any one of the following:
* Income Proof: Bank Statement; ITR of the Last 2 Years
* RC of existing asset / Repayment Track Record (wherever applicable)
* Land Ownership Proof (wherever applicable)
* Salary Proof (wherever applicable)
The HDFC Bank Tractor Loan is your pathway to acquiring the tractor you need to boost your agricultural or business endeavors. With flexible loan terms, competitive interest rates, and a hassle-free application process, it's designed to make your life easier.
Conclusion
In conclusion, both SBI and HDFC Bank offer competitive tractor loan schemes designed to meet the diverse needs of farmers and agricultural businesses. SBI's Tractor Loan Scheme provides structured financing options with fixed repayment terms, while HDFC Bank offers more flexibility in loan tenure and repayment options. Ultimately, the choice between the two would depend on individual preferences, financial requirements, and eligibility criteria. Regardless of the choice, both banks are committed to supporting the growth and sustainability of the agricultural sector, thereby contributing to the overall development of rural communities and the nation as a whole.
