Every geography book in India will convey the fact that India is an agricultural country. With the advent of technology, one of the greatest boons that science has gifted farmers is the tractors. For the 21st century farmers, cultivating crops without utilizing tractors is almost impossible. But with most of the Indian farmers belonging to the low-income group, buying a tractor is a very large investment. The Government of India, since the green revolution, has tried to help the Indian farmer through various financial institutions to provide tractor loans at affordable rates of interest and with various other schemes as well.
When Can One Be Eligible to Take a Tractor Loan
Although different banks would have different eligibility criteria, the following points are generally considered in evaluating the credit worthiness of a customer.
The most popular financial institutions offering tractor loans and their key features are below
1. Mahindra Finance
2. Magma Fincorp
3. ICICI Bank
4. HDFC Bank
5. AXIS Bank
Apart from the above-mentioned institutions, other major players in this tractor loan space include.
In general, the interest percentage of tractor loans is 14%-18%. Upon punctual repayment of loans, there are several institutes who offer a concession of interests. A minimal amount as upfront fees may be charged during the process of loan disbursal. Repayment of loans installments is generally flexible in nature which ranges between monthly to even half yearly. Postdated cheques are also accepted as a medium of loan repayment.