Tractor Loan
A Tractor Loan helps farmers, agricultural entrepreneurs, and rural businesses purchase new or used tractors through affordable financing. These loans are designed to boost productivity and modernize farming operations by offering flexible repayment options, low interest rates, and quick approvals. With the right tractor loan, farmers can enhance efficiency, improve yields, and grow their income sustainably.
Types Of Tractor Loan
Tractor loans can be categorized based on borrower type, purpose, and repayment options
New Tractor Loan
For purchasing a brand-new tractor from an authorized dealer or manufacturer.
Used Tractor Loan
Financing for pre-owned tractors at affordable rates for small or marginal farmers.
Tractor Refinance Loan
Offered against a fully paid tractor to meet urgent financial needs or fund new purchases.
Agricultural Tractor Loan
Specifically for farming and related agricultural activities.
Commercial Tractor Loan
For entrepreneurs using tractors for commercial hauling or rental purposes.
Top-Up Tractor Loan
Additional funding for existing tractor loan customers to cover repair, upgrade, or equipment costs.
Why Tractor Loan Is Important?
Eligibility Criteria
Farmers, agribusiness owners, and rural entrepreneurs aged 18–65 with valid income proof can apply.
Loan Amount & Tenure
Loan amounts range from ₹50,000 to ₹25 lakh with repayment periods between 3–7 years.
Interest Rates
Rates generally vary between 8%–15% depending on the applicant’s credit score, bank, and loan type.
Documents Required
Aadhaar, PAN, land ownership proof, income proof, tractor quotation/invoice, and bank statements.
FAQs
What is a Tractor Loan?
A Tractor Loan is a financing option that allows farmers and rural entrepreneurs to buy new or used tractors through affordable EMIs.
Who can apply for a Tractor Loan?
Individual farmers, FPOs, agribusiness owners, and rural entrepreneurs involved in agriculture or related work can apply.
What is the interest rate for Tractor Loans?
Interest rates typically range from 8% to 15%, depending on the bank, applicant profile, and repayment capacity.
Can I get a loan for a second-hand tractor?
Yes, most banks and NBFCs offer used tractor loans at competitive rates for eligible applicants.
Are there any subsidies available on Tractor Loans?
Yes, eligible farmers can benefit from government subsidy schemes such as the PM Kisan Tractor Yojana.
What is the maximum repayment period for a Tractor Loan?
The repayment tenure can extend up to 7 years, depending on the borrower’s financial capacity and lender terms.