How to apply for a tractor loan for farmers and what are the documents required and the eligibility criteria for the tractor loan in India 2019.
Agriculture and thereby farmers aim towards improving environmental health, economic profitability, and social and economic equity. For achieving these, technology aid is much necessary, unfortunately not every farmer in India could afford to buy technically advanced types of machinery for better performance and more profitability. However, with the government’s and various regional, state and national level bank’s initiative of ‘Tractor Loans for Farmers,’ the economy will soon change its face. The below-mentioned information will help every farmer willing to apply for Tractor Loan as well as Agricultural Loan.
Tractor loans taken for agricultural purposes are generally sanctioned for buying new tractors, machine accessories, and tools used mainly by farmers. Farmers or groups of farmers apply together for tractor loans and pay it in the form of EMIs together in a group or individually. In case, an applicant fails to pay the amount then the tractor is taken away from the loan seekers.
Benefits of Tractor Loan:
- Applying for tractor loan does not require collateral or security against the loan.
- It is a hassle free transaction and has faster approvals.
- Farmers and agricultural businesses get attractive tractor loan interest rates.
- You can get up to 90% finance on your tractor.
- Both farmers and non- farmers ( but should be involved in the agriculture industry)
Eligibility Criteria for Tractor Loan in India:
Tractor loan eligibility criteria are different for different level banks or organizations. The basic criteria are mentioned below:
- The first and most important thing required for applying for tractor loan is that individual should be involved in farming activities. The nature of their work can be agriculture, semi-agriculture, and commercial business.
- The applicant must have sufficient income to be able to pay the loan amount.
- The loan applicant should possess a minimum of 2 Acres of landholding.
- The applicant’s age should be minimum 21 years and he/she should have residential stability of at least 2 years
Financial Specifics of the Loan:
- The tractor loan can be raised for up to INR 7 Lakhs.
- Loan tenure can go up to 5 years.
- The interest rate for the machine ranges from 12 – 26%.
- Post-dated cheques can also be used as an option for repayment.
How to Apply for Tractor Loan:
The most important question arises after knowing that we fit in the criteria for applying for the tractor loan, is How to apply for the tractor loan. For buying a tractor or any other agricultural machinery as a farmer or a person involved in Agri-Business can apply for the personal loan and use it for buying the required machine.
There are several banks and NBFCs like SBI Bank, Axis Bank, ICICI Bank, HDFC Bank, PNB Bank, Mahindra Finance, Credit Mantri, etc. who provide the tractor or other agricultural loans at various interest rates. Banks do provide you with every information you need but as a digitally advanced consumer, you can also calculate your EMI with tractor loan EMI calculator on Khetigaadi. For using the tractor loan EMI calculator, you will just have to add the details of the type of the loan, the tractor loan amount and the interest rate. After adding all these details, the tractor EMI calculator will give you an estimation of the monthly and yearly amount to be paid.
Documents Required for the Tractor Loan:
- Min. 1 and Max. 2 latest passport size coloured photographs.
- Anyone of the Identity Proofs among Voter ID Card / Aadhar Card / Passport / Driving License / Bank Sign Verification along with the photo.
- Anyone of the Age Proofs among Voter ID Card with DOB, PAN Card, Passport, Driving License, Aadhar Card, Mark Sheet with DOB
- Sign Verification Document – PAN Card /Driving License / Passport
- Ownership Proof – Tax Bill / Electric Bill / Water Bill / Gas Bill / Possession Letter
- Income Proof – 7/12 and 8A extract / Work Order
- Last six months Bank Statement of all bank accounts
Making use of the financial aid given by the government and other financial institutions will help farmers earn profits and generate profits.