Are You Eligible for a Tractor Loan? Find out Now!

If you are in an agricultural business then you know it more than anyone else how important owning a tractor is. The tractor not only simplifies your farming job but it also helps add productivity to your business. Getting a new tractor can be a costly affair but it can be made less worrying with a tractor loan from a trusted lender. This loan is also available for people or businesses who want to enter the tractor renting service.

Eligibility

The eligibility criteria can differ from lender to lender. However, the same can be divided into two categories, for farmers, and for non-farmers.

Farmers:

• The minimum age should be at least 18 years to avail of the loan
• The upper age limit is 60 years
• The minimum yearly income should be INR 1 lakh; however, this amount may vary depending on the lender
• The mandatory requirement is to have at least three acres of farmland; this too can be different depending on the lenders

Non-farmers:

• The age criteria are similar to that of the ‘farmers’ category
• The yearly income should be INR 1.5 lakh; this can be different among lenders
• The connection of a telephone line or an active mobile phone number is mandatory to get an approval for a tractor loan

Expenses

The annual interest rate for the loan can vary from 13-20% depending on your lender. You will also have to pay a processing fee of up to 4% of the total amount of loan sanctioned. This fee can differ for different banks or other lending companies. If you ever fail to pay the interest on time, you will have to pay a penalty fee of 2% over the regular Equated Monthly Installment (EMI). Other than these, lenders can include other charges, which will be mentioned in their paperwork. You can use an online tractor loan EMI calculator in order to get an idea about how much you have to pay in order to recompense the debt.

Benefits

The tractor finance comes with many great benefits. Here is a list of a few that will convince you of its effectiveness:

• To make the most of your tractor, you need to buy the best one possible. That surely will cost you a good amount of money. Getting a loan will make it less heavy on your pocket
• The reputed lending companies offer up to 90% of the price of a tractor as the loan amount
• Depending on the lender, you can get a repayment tenure ranging from one-seven years. It is easier to repay the finance for tractors with a seven-year contract
• Some lenders offer insurance bonuses with the loan. This can help you save a lot of money in the long run

With the tractor loan calculator, you can check the benefits across different lenders in order to easily find the best possible choice for yourself.