_medium.webp&w=256&q=75 "Shubh Muhurat"){kind=small}
Career
_small.webp&w=256&q=75 "Mahindra image")
_small.webp&w=256&q=75 "Tractor On Road Price image")
_small.webp&w=256&q=75 "Webstory image")
_small.webp&w=256&q=75 "Tractor News image")
Tractor Loan/Finance/Refinance
CENTRAL BANK OF INDIA
Introduction
To purchase Two/Four wheelers for agricultural purpose.
FEATURES AND BENEFIT OF TRACTOR FINANCE
- Nature of Facility – Term Loan
- Margin – 20%
- Primary and Collateral Security
- Hypothecation of Tractor and other assets created out of Bank finance.
- Hypothecation of crops.
- Mortgage/charge on agricultural land
- Insurance - Assets created out of loan have to be insured for full value.
- Repayment 7 to 9 years.
ELIGIBILITY OF TRACTOR FINANCE
Individuals, Partnership firms, companies, FSS, PACs engaged in agriculture and / or allied activities and having land holding of 8 acres of perennially irrigated land or 16 acres of dry land cultivating single crop in a year or 4 acres of irrigated land and cultivating minimum two crops in a year.
FEATURES AND BENEFIT OF TRACTOR REFINANCE
Nature of Facility – Term Loan
- Quantum of Loan 2 Wheeler - 90% 4 Wheeler - 80%
- 2 Wheeler - 90%
- 4 Wheeler - 80%
- Margin 2 Wheeler - 10% 4 Wheeler - 20%
- 2 Wheeler - 10%
- 4 Wheeler - 20%
- Security Hypothecation of vehicle. Guarantee of two persons OR creation of Mortgage/ charge on land.
- Hypothecation of vehicle.
- Guarantee of two persons OR creation of Mortgage/ charge on land.
- Repayment 2 Wheeler - within 5 years 4 Wheeler - within 7 years
- 2 Wheeler - within 5 years
- 4 Wheeler - within 7 years
- Insurance - Assets created out of loan have to be insured for full value.
INTEREST RATE & CHARGES FOR TRACTOR FINANCE
Interest Rate Range for Tractor Loan
Limit Upto Rs.50,000/- (MCLR + 0.50%)
Above Rs.50,000/- upto Rs.5.00 lacs (MCLR + 1.00%)
Above Rs.5.00 lacs upto Rs.25.00 lacs (MCLR + 1.50%)
Above Rs.25.00 lacs (MCLR + 2.00%)
Processing Fees
Upto Rs.25,000/- : NIL
@ Rs.120/- per lac or part thereof, maximum Rs.20,000/-.
Documentation Charges
Nil
Frequently Asked Questions About Tractor Loan/Finance/Refinance
A tractor loan is a type of financing provided by banks or financial institutions to help farmers and buyers purchase a tractor. It allows you to pay the cost in easy installments instead of a lump sum.
Tractor Loan interest rate starts from 9.00% p.a and goes up to 20.00% p.a.
Some commonly required Documents for a new tractor loan are address proof, age proof, identity proof, ownership proof, etc and required documents for a tractor loan vary from bank/FI to bank/FI.
For tractor finance credit score of more than 680 is required but in some cases applicant credit score as low as 520 is also able to get a tractor loan.
Yes, you can pay the tractor finance through EMIs on a monthly, quarterly, and half-yearly basis.
No, you don't have to mortgage land to get a tractor loan.
There is no fixed minimum-maximum amount for tractor loan. Tractor loan amounts can be customized to suit your individual needs.
The maximum loan amount that you can get is 90% of the total tractor price.
Best banks for tractor finance are SBI Bank, HDFC Bank, Kotak Mahindra Bank, Central Bank of India, Axis Bank, bank of Baroda, IndusInd Bank, ICICI Bank, and more.
Tractor loan tenure varies from 12 months to 84 months.
