Tractor loans are more accessible and hassle-free today. Farming is becoming smarter every day, and you can also modernize your farming style by applying for a Tractor Loan with TVS Credit Services Ltd. Here, you will not go through any kind of lengthy paperwork because most of the loan process is taken care of digitally. Also, the repayment terms can be set in accordance with your crop cycles so that you don’t need to worry about times of scarcity.
| 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 large upfront costs. A tractor loan covers up to 90% of the tractor’s price and reduces the burden on the farmer.
Tractor loans are offered with flexible repayment terms that are aligned with the farmer’s seasonal income. Also, farmers get to select from different repayment methods, like online, post-dated cheques or ECS. Tractor loans are provided at competitive interest rates and ask for minimum income and land holdings to provide the loans. It is important to note that in case of loan default, the loan provider can take possession of the tractor itself.
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.
Minimal Documentation: Faster approval and quick tractor loan disbursement is done with minimal paperwork requirements.
High LTV: High loan-to-value (LTV) financing of up to 90% reduces the need for upfront cash.
Faster Loan Processing: The loan funds are processed instantly once the required documents are submitted.
No Income Documents Needed: There is no need for traditional income documentation to apply for a tractor loan. The loan application is considered even with the no-income document scheme.
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, Passport, Voter id, or Driving License |
|
Earning Source |
Supporting loan repayment |
|
Asset |
Supporting ownership of assets, like land |
|
Additional Documents |
Passbook or bank statements |
Some of the major changes and fees related to tractor loans are discussed below. It is important to note that some extra charges can also be there.
|
Type |
Charges (including GST) |
|
Foreclosure Charges |
Up to 10% |
|
Penal 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 |
Rs 500 |
|
Bounce Charges |
Rs 750 |
Here is the step-by-step breakdown on how to apply for a tractor loan:
A tractor loan comes under the agricultural loan category that allows financing tractors 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.
