Tractor loans are a valuable financial product in today’s agricultural world, helping farmers improve their financial security. To get this financial security, you can modernize your farming by applying for a tractor loan with TVS Credit Services Ltd. As TVS provides a fully digital process, you won’t get stuck with any lengthy paperwork. Moreover, the repayment schedule is designed to align with your crop cycle, with repayment options including ECS, post-dated cheques, or online payments.
| Must be a farmer or individual with agri usage |
| Must have proof of income and proof of land holding |
| A good CIBIL score determining the creditworthiness in eye of lenders |
Duly filled application form with borrowers, co borrowers and guarantors photographs
ID proof, address proof and signature verification of the borrower as well as guarantor
Land documents as applicable and records of past loans availed if any
A tractor loan helps farmers finance the new tractors they might consider buying to upgrade their farm machinery without incurring high upfront costs. A tractor loan covers up to 90% of the tractor’s price and reduces the burden on the farmer.
Tractor loans offer flexible repayment terms aligned with the farmer’s seasonal income. Tractor loans are provided at competitive interest rates and require a minimum income and land holdings to qualify. It is important to note that, in the event of loan default, the lender can take possession of the tractor.
Today, the tractor loan process is seamless and requires minimal documentation. At TVS Credit, farmers also get a no-income document option for tractor loans. Apply for a tractor loan today and don’t let cash flow slow down your farm’s productivity.
The eligibility criteria for a tractor loan are as follows:
A tractor loan application needs the following documents:
|
Proof Type |
Valid Document |
|
Address and Identification |
Adhaar Card/Copy of PAN Card/Passport/Voter’s ID/Driving License |
|
Earning Source |
Supporting loan repayment |
|
Asset |
Supporting ownership of assets, like land |
|
Additional Documents |
Passbook or bank statements |
Tractor loans interest rates and other charges are discussed below.
|
Type |
Charges (including GST) |
|
Processing Fees |
Up to 10% |
|
Foreclosure Charges |
6% of the future Principal Outstanding: less than or equal to 12 months of remaining loan tenure 5% of the future Principal Outstanding: greater than 12 months of remaining loan tenure |
|
Penal Charges |
36% annually on unpaid installments |
|
Duplicate NDC/NOC charges |
₹ 500 |
|
Bounce Charges |
₹ 750 |
Here is the step-by-step breakdown on how to apply for a tractor loan:
Step 1: Start by choosing the specific tractor model that you want to buy and need a loan for.
Step 2: Submit all the necessary documents for loan approval.
Step 3: Get your loan disbursed without any delay, once approved.
A tractor loan comes under the agricultural loan category that allows tractor financing on simple EMIs without paying the full upfront price.
The interest rate on a tractor loan is usually between 11% to 25%. It may vary from person to person depending on important factors like credit score and the amount of loan needed.
The key benefits of a tractor loan include quick loan approval, minimal documentation, no income proof, and maximum funding.
The minimum age required for a tractor loan is 18 years with an agri background and 21 years with a commercial background.
The maximum tenure of a tractor loan can range from 12 to 72 months, based on the type of tractor loan chosen.
