Punjab National Bank Tractor Loan Interest Rate at 11% - 15% as on Mar 2024

Punjab National Bank Tractor Loan Interest Rate (Updated on Mar 2024)

INTEREST RATE11% - 15%
LOAN AMOUNTNeed based loan, net of margin.
LOAN TENUREMaximum 9 years
MARGIN REQUIRED15% of loan amount
PROCESSING FEE2% to 3% of loan amount
PREPAYMENT CHARGESAs per bank's policy

Punjab National Bank Details

  • BANK OFFICIAL WEBSITE - www.pnbindia.in
  • CONTACT NUMBERS - 18001802222, 18001032222, 0120-249000, 011-28044907
  • EMAIL ID - [email protected]
  • MISSED CALL NO. - 18001802223, 0120-2303090
  • CUSTOMER CARE NO. - 18001802222, 18001032222, 0120-249000, 011-28044907
  • TOTAL BRANCHES - 6560
  • TOTAL ATMS - 8348
  • HEADQUARTER - New Delhi
  • BANK ADDRESS - Plot No 4, Sector -10 Dwarka New Delhi -110075

Purpose of Punjab National Bank Tractor Loan

In Farm Mechanisation Scheme, the loan is sanctioned for Purchase of new tractors and matching implements/equipments, purchase of new power tillers, purchase of second hand tractors with matching implements, purchase of agricultural machinery, and repair/renovation of tractors.

Features & Benefits of Punjab National Bank Tractor Loan

  • Financing 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.
  • Customized financing solutions to meet individual requirements
  • Minimal documentation, quick processing and faster disbursements
  • Loan can be availed of with or without additional collateral
  • Flexible loan tenure
  • 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

Eligibility Criteria for Punjab National Bank Tractor Loan

Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponding acreage. Economic viability of financing tractor in each case shall be worked out. Thus, financing of tractor shall be done after ensuring economic viability of the tractor loan proposal.

Documents Required for Punjab National Bank Tractor Loan

  • Proof of Identity: (Passport / Voter's ID / Driving License/PAN Card/Aadhar Card)
  • Address Proof: (Ration card /Driving License/ Voter's ID / Utility Bill (any one within last 3months) / Registered Rental Agreement / Passport)
  • Land holding proof/ Latest Land Records: Should not be more than 3 months old, in case of farmers
  • Income Tax (ITR) and financial statements for the last two years, complete with schedules and P&L account.
  • Bank statements for the last six months
  • Driving license for commercial usage cases
  • Signature Proof: Copy of driving licence / Copy of PAN card / Present Banker verification.
  • Fleet list details
  • A certified true copy of Proprietorship declaration, partnership deed, board resolution, Memorandum & articles of association will be required in case of partnership firms and limited companies respectively.

Security for Punjab National Bank Tractor Loan

Primary Security: Hypothecation of Tractor and other implements going to be purchased.

Collateral Security: Collateral Security in the form of FDR, NSC, LIC Policies (10 - 30%) based on credit rating or as Equitable Mortgage of immovable properties.

Loan Amount for Punjab National Bank Tractor Loan

Need based loan, net of margin.

Margin

Upto 15% margin is required

Tenure for Punjab National Bank Tractor Loan

Maximum 9 years

Repayment as Equated Monthly Installments (EMI)

Any one of the following methods can be used to repay the loan:

  • Standing instruction registration at your bank
  • Through Internet Banking solution
  • Automated Payment through ECS (Electronic Clearing service)
  • Through Mobile Banking App, if provided by the bank

Interest Rate for Punjab National Bank Tractor Loan

11% - 15%

Processing Charges for Punjab National Bank Tractor Loan

2% to 3% of the loan amount

How to Apply for Punjab National Bank Tractor Loan

  1. Apply Online: You can apply online through website of Punjab National Bank and fill up your personal information and work information & uploading necessary documents. You can apply after checking your loan eligibility.
  2. Apply Offline: You can visit personally to any of Punjab National Bank branches along with all the required documents , fill up the form and get your loan approval process started.

Tractor Loan Processing by Punjab National Bank

After you have submitted completed tractor loan application form along with the necessary supporting documents, Punjab National Bank will take following steps:

  • Punjab National Bank will consider its loan policy guidelines and verify the documents submitted by you.
  • If Punjab National Bank finds you eligible, you will be sent an approval letter for a specific loan amount that is based on your requirement and repayment capacity.
  • Punjab National Bank will inform its loan approval decision within its time limit, if your application is complete in all respect.
  • After complying all terms and conditions loan will be disbursed.

Documents Required: Pre Disbursement & Post Disbursement of Tractor Loan

Pre DisbursementPost Disbursement
Duly completed loan documentsRegistration (RC) book with hypothecation charge in favour of bank
Original title deed of land for collateralOriginal invoice issued by tractor dealer
Post Dated Cheques, ECS RequestTractor Insurance Copy

Other Importent Points

INSURANCE: The tractor borrowers who have opted for PNB Farmers' Welfare Fund Scheme are required to get their tractor and matching implements insured against 'Liability' (third party) under the Insurance Act to get insurance coverage.