Tractor Loan Interest Rate Starting at 8.80% as on Oct 2023

Tractor loan is offered by several banks at a lower interest rate starting at 8.80% as on 04 Oct 2023. Banks/ FIs generally provide the loan upto 90% of value of the tractor. It is extended for the period from 12 months to 9 years.

Public Banks Tractor Loan (updated on 04 Oct 2023)

Private Banks Tractor Loan (updated on 04 Oct 2023)

Gramin Banks Tractor Loan (updated on 04 Oct 2023)

Tractor Loan

A sizeable portion of Indian population lives in villages which is primarily engaged in agriculture & agri-related activities. Hence there has always remain a huge demand for credit and finance the rural and semi urban area for buying new technologies and machinery to boost agricultural activities which include buying tractors, harvesters and other farm equipment

Objective of providing Tractor Loan

The main objective behind providing tractor loan is the transformation of traditional subsistence agriculture into commercial position. Assist farmers, to shift from traditional farming to mechanized farming for reducing the time and cost of the preparation of land for growing crops (tillage) and other agricultural operations and also improving the quality of tillage so as to increase their crop productions through multiple cropping and profitability. In rural areas, tractors are used for tilling the land as well as a mode of conveyance.

Features of Tractor Loan

• Loan is available for New as well as Used Tractors
• Get up to 90% finance on your tractor
• Affordable Tractor loan interest rates
• The Loan amount will cover the cost of tractor, accessories, implements, insurance and registration expenses.
• Flexible tenure of 12 to 108 months
• Facility of Monthly, Quarterly and Half yearly repayment
• You can use post-dated cheques (PDCs)/ Standing Instruction/ECS/ ACH to easily repay the loan
• Non farmers are also eligible to avail of a loan

Benefits of Tractor Loan

• Minimal documentation
• Quick processing of loan application
• Faster disbursement of loan
• Multiple modes of repayment
• Availability of Insurance cover available at attractive rates
• Personalised customer service

Tractor Loan comparison

There are various tractor loan schemes from banks which differ in terms of eligibility criteria, documentation required, security required, interest rates, tenure and service charges. Here we give you facility to compare tractor loan provided by various banks and select the best that suits your requirements.

Tractor Subsidy Scheme

For timely field operation of the farmers of these Islands, the department provide assistance to the farmers for purchase of tractor with three matching implements by their-own by availing subsidies from the department.

Tractor Subsidy Scheme

1. About Tractor Subsidy Scheme

   Tractor subsidy scheme has been introduced by the government of India and agriculture ministry includes:

   • 30% cost subsidy or Rs. 30,000, whichever is less
   • 100% transport subsidy is provided by the department

   You may enquire about the same and can avail the same in case you are eligible for the same.

2. Eligibility Criteria for Tractor Subsidy Scheme
   • The Progressive Farmer/Cooperative Societies should possess 6Acre/2.51 hectare of land in his ownership.
   • The land in question to take Loan cum subsidy on tractor should be free from all incumbance and have clear title of ownership with detailed survey particulars.
3. Who can Apply for Tractor Subsidy Scheme?
   • Individual farmers/Co-operative Societies are eligible for bank loans towards the cost of tractor with three matching implements including one trailer.
   • 15% of the cost to be contributed by the farmer as down payment
4. How to Apply for Tractor Subsidy Scheme?
   • The application forms are available with concerned Zonal Officers or Incharge of sub-depot
   • The concerned farmer should fill-up the application form alongwith all records of the land.
   • The application is to be submitted to the concerned Zonal Officer or Incharge of the sub-depot.
   • In normal case, the scheme is sanctioned within 45 days.

Stages Involved in Tractor Loan Processing

(1) Loan Application Submission by the Applicant along with Required Documents

Farmers and businessmen (applicant) can approach the lending institutions directly for tractor loans. The applicant needs to submit loan application with the lender along with required documents as prescribed by the lender. In the application form, he needs to fill up all the information and the loan amount which he wants to avail. A few institutions also accept online applications for tractor loans.

(2) Processing of Loan Application by the Lender

Repayment capacity of farmers will be prime factor in determining loan amount by the lender. Other items to be considered are annual agriculture income, types of crops cultivated, experience of tractor operations, farmers' capacity to meet margin money requirement, cropping intensity and irrigation facility.

The quantum of loan will be decided on the repayment capacity of the applicants based on existing income, any other source of income, loan requirements of the applicant and also the resale value of the asset being financed.

(3) Sanction of Tractor Loan

After the successful processing of loan application, the lender informs the applicant the sanction of loan and sanctioned amount of loan.

(4) Disbursement of Tractor Loan

If the applicant submits all the required documents and signs the loan agreement, the amount is finally disbursed and is credited to the bank account of the borrower.

Types of Tractor Loan

There are following 4 types of tractor loans available in India:

1. Mortgage Loan
2. Non-Mortgage Loan
3. Used Tractor Loan
4. Harvestor Loan