A tractor reduces the time and efforts required for various agricultural activities. It also improves the efficiency of farming. Therefore, every farmer desires to own a tractor.
Several leading companies manufacture different types of tractors with the latest technology and features. Until a few years ago, farmers often borrowed money from the local moneylender to buy a tractor. These loans were not only expensive but also often had very strict terms and conditions.
Fortunately, leading financial institutions in India now offer tractor finance. The lender will pay you the money needed to buy a tractor and the same has to be repaid in fixed installments over the loan duration.
Here are some benefits of a tractor loan:
- Available for different types of tractors
- A quick and easy approval process
- Flexible repayment terms with tenure between three months and five years
- Simple and easy documentation
- Stress-free loan without mortgaging your agricultural land
- Customized loans as per your personal requirements
- Down payment can be based on your financial situation
- Affordable tractor loan interest rates
Eligibility norms may vary from one lender to another and you should check these before you apply for a loan. Here are some of the common eligibility norms:
- Age of the applicant should be between 18 and 60 years
- Minimum annual income of INR 1 lakh
- At least own three acres of agricultural land
Eligibility norms for non-farmer applicants are also similar but your annual income will need to be at least INR 1.5 lakh and you should have an active mobile number or a telephone connection.
When you apply for a loan, you will have to submit some basic details along with the necessary documents. The tractor loan documents include:
- Know-your-customer (KYC) documentation
- Land ownership documents
- Income proof to show repayment capability
You can apply for a loan either online or by visiting the nearest branch. Here is the procedure to apply for a loan:
- Check the eligibility norms as these differ from one lender to another
- Keep all the documents ready to ensure there is no delay
- Provide the necessary information
- Review the terms and conditions to avoid surprises in the future
When you apply for a tractor loan online, you will need some basic information like name, contact number, age, and income details, which should be kept handy to complete the application without any difficulties.
Mahindra Finance offers affordable and hassle-free loans to buy a tractor. To know more about the same, you can check their official website.