Tractor Loan FAQ, FAQs on Tractor Loan
Tractor Loan Scheme FAQ
What is the security/collateral required to avail Tractor Loan?
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.
Can I get a tractor loan for any tractor I want to purchase?
Generally banks finance tractors made by all leading manufacturers in India. For specific model, you can contact the nearest branch of the bank.
What are the minimum & maximum tractor loan amounts?
The tractor loan amounts can be customised to suit your individual needs.
Can I repay my tractor loan before the completion of my loan tenure?
Yes, foreclosure is allowed with or without some penalty as per specific bank's rules and guidelines.
Can I pre-pay the entire loan amount?
Yes, you can prepay the entire loan amount but you will have to pay a pre-payment fee on outstanding loan amount.
What is the maximum loan amount I can get from the bank to purchase a tractor?
It can be maximum of upto 90% of the bank approved price on the specific model of tractor.
What is the down payment?
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.
How much time is required for actually receiving the money after sanction of loan?
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).
What will be the frequency of repayments?
The frequency of repayment can be Monthly, Bi-Monthly, Quarterly or Half-Yearly. In particular cases, it will vary according to the product variants.
What are the benefits of Tractor Subsidy Scheme by Government of India?
Government provide 25% subsidy for Tractor whose cost limited to Rs 30,000 for buying Tractors of up to 35 HP.
What are the documents to be submitted for getting Tractor Subsidy Scheme by Government of India?
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
What are the top 3 tractor companies in India?
Mahindra, Tafe (Tractors and Farm Equipment Limited) and Escorts are the top 3 tractor companies in India.