All tractor brands aim to harness this positive period by offering great discounts and deals for farmers, further boosting demand for tractors during these months.
In India, Kharif production in 2023 has received a positive outlook. As per the Union Ministry of Agriculture, the progress of area coverage under Kharif crops till 28 July 2023 has been positive. The area sown under Kharif crops stands at 80%, with paddy and soybean showing a maximum increase in area sown, indicating a bumper Kharif crop.
Overall, it is the best time to invest in the tractor of your dream. So, do not let your finances stop you from enjoying the upcoming festive season. You can now take a tractor loan and book the right tractor that is suitable for your farm. Here, in the article, we will help you learn everything about Tractor loans and how can you avail it to gear up for this festive season.
What is a Tractor Loan?
A Tractor loan is an agriculture loan that enables you to buy a tractor on easy EMIs (Equated Monthly Instalments).
You can take the tractor home by making a down payment which is a certain percentage of the tractor's price. The difference between the tractor price and the down payment made will be the total tractor loan amount. After the tractor delivery, at a convenient interval, as agreed between you and the bank offering loan, you can repay the loan amount.
Tractor loans are secured loans which means that the financier can take back the possession of the tractor in case you default on the repayment of the EMIs.
Key Features of a Tractor Loan
- They come with attractive interest rates ranging from a minimum of 9% per annum to 23% per annum.
- The interest rate varies from financier to financier. It is also dependent on factors like your CIBIL score, total loan amount, loan tenure, etc.
- The repayment tenure is flexible, and most financial institutions offer a maximum term of up to 7 years. You can go for a repayment tenure that suits your financial capacity.
- The application process for tractor loans is straightforward, and the documentation requirements are usually minimal.
- The loan amount depends on the price of the tractor and your down payment capacity. You can borrow up to 90% of the tractor's price.
- The tractor loan does not come with any additional collateral. Instead, the tractor itself is the collateral.
- Many lenders offer quick approval and disbursal of tractor loans, allowing you to purchase without delays.
Points to Consider While Taking a Tractor Loan
- Ensure that you fulfill the eligibility criteria set by the lender.
- Make sure to compare the interest rates of various lenders to get the best deal.
- Be aware of any hidden charges or processing fees associated with the loan.
- Only take a loan amount you can comfortably repay without straining your finances.
- Purchase your dream tractor from authorized dealers to ensure quality and warranty support.
- Read and understand the loan terms and conditions thoroughly before signing any agreement.
Best Platform to get a Tractor Loan: Tractorkarvan
So, if you are preparing for this auspicious time to buy the tractor of your choice, then, Tractorkarvan has got you covered. It offers new tractor loans, farm implement loans, used tractor loans, tractor refinancing, and personal loans. Here, you can avail of loans at attractive & best-in-industry interest rates, funding up to 90% of the total tractor value, and flexible repayment options. All of this is available just in a few simple steps.
Tractorkarvan is a one-stop digital platform for all the information farmers need on tractors and farm equipment. It provides user-friendly features that help farmers in the process of finding, buying & selling tractors and financing tractors, farm implements, farm tyres, and harvesters. On this platform, farmers get detailed, well-researched, and curated information such as specifications, features, price & EMI, and authentic user reviews. Through its large on-ground presence, Tractorkarvan assists Indian farmers to select, buy, and finance tractors with ease.
