Tractor Loans In India 2022

Banks and financial institutions in the country offer tractor loans to individuals who wish to purchase new or pre-owned tractors at competitive interest rates that start at 9.00% p.a. Prospective tractor loan borrowers may also have to pay a processing fee of around 0.5% to 2% of the loan repayment term. Most lenders offer repayments terms of up to 7 years.

Banks That Offers Tractor Loans In India

State Bank of India New Tractor Loan Scheme

State Bank of India offers agricultural term loans to those who wish to purchase new tractors and related accessories. Individuals, groups of individuals, institutions, and organizations are eligible to avail this loan.

Benefits & Highlights

• To be eligible to borrow this loan, the prospective borrower will need to earn a regular income.
• A 15% margin is applicable.
• To borrow this loan, the borrower will need to hypothecate their tractor/accessories.
• The borrower will need to insure the tractor/accessories purchased after taking a loan.
• 0.5% of the loan amount is charged as the upfront fee by the lender.

ICICI Bank Tractor Loan

ICICI Bank offers a tractor loan to individuals who own agricultural loan. The prospective borrower’s agriculture income is taken into consideration to determine their eligibility. The applicant should have at least 3 acres of land to qualify for this loan.

Benefits & Highlights

• The lender charges a low rate of interest, with a processing fee of 4%.
• Non-mortgage loans are offered, as well.
• Flexible repayment options are offered to borrowers.
• 4.72% of the outstanding loan amount or outstanding interest for the unexpired loan tenure.

HDFC Bank Tractor Loans

HDFC Bank offers tractor loans to farmers and non-farmers to purchase new or pre-owned tractors. The lender charges an attractive rate of interest and approves tractor loans within 30 minutes.

Benefits & Highlights

• The lender offers an easy documentation process.
• Prospective borrowers can borrow up to 90% of the tractor’s price.
• The lender offers flexible repayment terms. Borrowers can repay their loans via post-dated cheques, ECS, SI, etc.
• Tractor loans from HDFC Bank can be availed with or without submitting collateral.
• To avail this loan, applicants have to be over the age of 18 years.
• Processing fee - 2% of the loan amount
• Pre-closure charges - Up to 6% of the outstanding principal

Axis Bank Tractor Loans

Axis Bank offers tractor loans at attractive interest rates, with a host of benefits to the loan borrower. Prospective loan borrowers can opt for a repayment term of up to 5 years and repay their loans on a monthly, quarterly, or bi-annual basis.

Benefits & Highlights

To borrow a tractor loan from Axis Bank, the applicant has to be over the age of 18 years.
The maximum age of the loan applicant, as on the date of funding, should be 75 years.
The loan applicant should have at least 3 acres of land.
The lender offers a quick documentation process.
To avail this loan, the vehicle that is purchased on loan will have to be hypothecated to the lender.

Magma Fincorp Tractor Loans

Magma Fincorp is a leading financial institution that offers loans for new and used tractors of all brands. The lender has a pan-India reach and offers loans to farmers who reside in Telangana, Andhra Pradesh, Maharashtra, Tamil Nadu, Punjab, Madhya Pradesh, Uttar Pradesh, Rajasthan, Kerala, Karnataka, Orissa, West Bengal, Bihar, Jharkhand, Haryana, Gujarat, etc.

Benefits & Highlights

• The lender offers loans to individuals who reside even in rural parts of India.
• The documentation process is simple and hassle-free.
• Borrowed loans can be repaid on a monthly, quarterly, or half-yearly basis.
• New loans are offered to customers who have already borrowed tractor loans from the lender without them having to submit their land holding documents.
• Borrowed loans can be foreclosed 6 months after the loan amount is disbursed.
• Pre-closure charges - 5% of the outstanding principal
• Eligibility Criteria to Avail Tractor Loans

A number of lenders offer tractor loans to farmers and non-farmers. The eligibility criteria that one will have to meet to avail a loan from the lender are as follows:

Eligibility Criteria for Farmers:

• Applicants will have to be over the age of 18 years.
• Maximum age, as on the date of funding, will have to be under 60 years.
• The applicant should have at least a minimum of 3 acres of agricultural land.
• The borrower should earn a minimum income of Rs.1 lakh per annum

Eligibility Criteria for Non-Farmers:

• The applicant has to be at least 18 years of age to avail a tractor loan.
• The maximum age of the applicant, as on the date of funding, will have to be 60 years.
• The minimum annual income of the applicant should be Rs.1,50,000.
• The applicant should mandatorily have a telephone line.