The Ultimate Guide to Implement Loans: Benefits, Eligibility, and How to apply

Table of Contents

• What is an Implement Loan?
• What are the Eligibility Factors for an Implement Loan?
• What are the Documents Required for an Implement Loan?
• What are the Features and Benefits of an Implement Loan?

What is an Implement Loan?

Agricultural industry is one of the major industries in India that requires a constant cash flow to keep it running. It can be for land, seeds, storage, tractors, and implements. If we specifically talk about implements then there are a variety of implements for different farming purposes such as rotavator, thresher, plough, super seeder, baler, etc. All of these implements, depending upon their features, cost a bit expensive. Implement loans, as the name suggests, is the agricultural financing provided to aid farmers in buying the farming implements of their choice. The implement loan is paid off in installments like other loans. The loan amount and interest rate are issued on the basis of applicant’s down payment, CIBIL score, and loan duration. The low interest rates can be accessible to you with bigger down payment, shorter loan tenure, and a higher credit score.

What are the Eligibility Factors for an Implement Loan?

The eligibility criteria for every institution varies depending on their policies. However, while getting a farm implement loan from us, the eligibility factors are as follows:

• The applicant must own a tractor on his/her name with a valid tractor’s Registration Certificate (RC). In case, you are yet to get your tractor’s RC, the tractor’s Invoice will also work if the purchase is within 90 days. Providing the RC is mandatory because the implement loans are unsecured loans. Therefore, checking the credibility of the farmer becomes necessary for the assurance of recovery.
• The CIBIL or credit score must be 700+. The applicant is also eligible for the implement loan in case the applicant has not taken any loan ever in the past.
• The type of implements and tractor’s HP are also important. The implements compatible with your tractor’s HP are eligible for the implement loan. Tractorkarvan provides assistance in helping you choose the best suitable implement for your tractor.
• The applicant should have a minimum income of 1.2 lakhs per annum to become eligible for the farm implement loan.
• We provide Farm implement loans on 76 certified brands including all the top brands like Mahindra, Fieldking, Lemken, Shaktiman, John Deere, Swaraj, New Holland, etc. The chosen implement should be one of the 76 certified brands.
• 25% of the total loan amount is required to be paid as a down payment of the farm implement.

What are the Documents Required for an Implement Loan?

The following documents are mandatory for initiating and completing the implement loan process:

• A quotation or invoice from the supplier or manufacturer of the implement you want to purchase. Tractorkarvan also provides assistance in getting your implement quotation.
• Government-issued identification documents are required to verify your identity. It can be a Voter ID card, Passport, Driver's License, PAN card, or Aadhaar card.
• Proof of your current residential address is required. It can be a copy of a ration card, electricity bill, or passport.
• You need to verify the tractor's ownership with documents like Registration Certificate (RC).

What are the Features and Benefits of an Implement Loan?

Getting your farm implement’s loan is quite easier with our partner TVS Credit. Once you have chosen your farm implement and provided the required documents, the loan gets approved and sanctioned without any delay. Some of the assured benefits are mentioned below:

• Farmers can preserve their capital for other operational expenses or investments by spreading the cost of acquiring implements over time.
• Complete doorstep assistance in KYC of your documents is provided if required. The entire process of verification is done by us at your home without you going anywhere.
• Loans can be customized based on your land holdings and you can avail the loan tenure of up to 72 months. 
• The journey of your farm implement loan can be completely digital and paperless based on your requirements.
• The loan amount is sanctioned within 24 hours and disbursed within 48 hours with no hidden charges.
• The applicant can easily repay the loan on the basis of crop cycle and harvesting patterns.

Conclusively, the implement loan can ease the accessibility to best agricultural equipment for any farmer in need. Farmers can preserve their capital for other operational expenses or investments by dividing the cost of acquiring implements over time. Implement loan can technologically upgrade your tractor and enhance its productivity which will result in more profit. With the matter of just a few clicks, you can get your implement loan from us at best interest rates. So, contact us now to unlock the full potential of your tractor.