Now these Banks will support you to buy Tractors

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 21^st 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.

1. The minimum land which the borrower should hold should be greater than equal to 2 acres
2. The bank can do its required checks to gauge the repaying capacity of the borrower. This typically involves home visits
3. Not only an individual but a group of farmers can apply for the loan together

The most popular financial institutions offering tractor loans and their key features are below

1. Mahindra Finance

• Fast disbursal of loan
• Covers a good range of tractors available in the Indian market
• Documentation is easy
• Land mortgaging is not required for sanctioning of loan
• Farmers will have the option of repaying monthly or quarterly basis and even on a half-yearly basis.

2. Magma Fincorp

• Tractor loan can cover up to 90-95 percent of the actual cost of the vehicle
• Loans disbursed for a used set of tractors as well
• Loans available for a wide range of tractors
• Flexible loan repayment option
• Loans available for farmers living in the most interior areas as well

3. ICICI Bank

• Subsidized processing fee and interest rates for all tractor loans
• Quick processing on loans and easy procedure
• Flexible loan repayment option
• Tractor loans are available without any form of mortgage

4. HDFC Bank

• Collateral free loans
• The loan amount can cover up to 90 percent of the value of the tractor
• Insurance option along with financing
• Flexible repayment option
• Easy and quick processing of loans

5. AXIS Bank

• Flexible loan repayment option
• Tractor loans can be applied from home
• Minimal documentation required

Apart from the above-mentioned institutions, other major players in this tractor loan space include.

1. State Bank of India
2. Oriental Bank of Commerce
3. Central Bank of India
4. Bank of Baroda
5. Chola Finance
6. L&T Finance
7. Shri Ram Transport Finance

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.