Tractor Loan Scheme FAQ
The financed vehicle will be hypothecated to the bank and charges of the bank will be mentioned on the registration certificate of the vehicle. For mortgage cases, agricultural land of the borrower will be mortgaged in favour of the bank.
Generally banks finance tractors made by all leading manufacturers in India. For specific model, you can contact the nearest branch of the bank.
The tractor loan amounts can be customised to suit your individual needs.
Yes, foreclosure is allowed with or without some penalty as per specific bank's rules and guidelines.
Yes, you can prepay the entire loan amount but you will have to pay a pre-payment fee on outstanding loan amount.
It can be maximum of upto 90% of the bank approved price on the specific model of tractor.
The down payment is the amount which the borrower needs to pay out of his pocket. Actually, down payment is a difference between the vehicle price and the tractor loan amount. The borrower can choose to make a higher down payment depending upon the finance option and his personal needs.
After the completion of all necessary post-sanction formalities by the you, the bank will remit the fund as per terms of sanction to the borrower immediately (within working hours of bank).
The frequency of repayment can be Monthly, Bi-Monthly, Quarterly or Half-Yearly. In particular cases, it will vary according to the product variants.
Government provide 25% subsidy for Tractor whose cost limited to Rs 30,000 for buying Tractors of up to 35 HP.
You will be required to submit following documents for getting Tractor Subsidy Scheme by Government of India:
- Applicant Aadhaar card
- Application form
- Applicant 7/12 extract
- Applicant bank account details
Mahindra, Tafe (Tractors and Farm Equipment Limited) and Escorts are the top 3 tractor companies in India.