How Tractor Loans are helping farmers grow in India

Agriculture has long been the backbone of India’s economy, employing approximately 148 million people, according to Statista. To carry out daily farming activities efficiently, farmers rely heavily on equipment like tractors.

However, not all agricultural workers can afford to purchase a tractor upfront. To help farmers get tractor financed, banks and NBFCs offer a variety of flexible financial solutions.

As a farmer, you may also have a lot of questions about choosing the right Tractor Loan. In this blog, we will explore the types of Tractor Loans and the benefits of availing a Tractor Loan right before the harvest season arrives.

Benefits of Tractor Loan to buy a tractor in India

1. Simple processing and purchase:

Tractor Loans are classified as secured debts, where the tractor itself is considered as the collateral. As the tractor serves as the security, this streamlines the process and disbursement of the Tractor Loan, making sure that farmers get swift access to the required machinery.

Simplification of the loan application and approval process by financial institutions and non-banking financial companies (NBFCs) like TVS Credit, makes it easier for farmers to avail Tractor Financing.

2. Hassle-free online transactions

Keeping up with the digital age, banks nowadays utilise technology to ensure convenience to farmers with online Tractor Financing options. Although physical verification may be required for certain loan applications, majority of the financial institutions have adopted digitisation for faster loan disbursal.

3. Lower interest rates

Due to Tractor Loans falling under the priority sector category, they tend to have low interest rates compared to Used Car Loans or new Car Loans/Used Commercial Vehicle Loans or Commercial Vehicle Loans making Tractor Financing a practical choice.

4. Simpler documentation

Classified as priority sector loans and being secured in nature, Tractor Loans have a simple documentation process. Typically, the applicants are asked to submit standard identification, address, and income proof to prove their eligibility.

This simplified approach to documentation help farmers navigate the application process with ease.

Now that you are informed on the benefits of a Tractor Loan, let us explore options that best suit your needs.

Types of Tractor Finance Loans:

TVS Credit offers various convenient and accessible options with attractive rate of interest on Tractor Loan.

Based on your financial needs such as Tractor Interest Rates, you can choose the option that works best for you.

• New Tractor Loan: A comprehensive financial solution that covers up to 90% of the cost of a brand-new tractor. New Tractor Loan option offers flexible repayment methods such as ECS (Electronic Clearing Service), post-dated cheques, or online payments, and also offers the attractive Interest Rate on Tractor Finance.
• Farm Implement Loan: We provide tailored loans to help you acquire farm equipment. A hassle-free Farm Implement Loan option with competitive interest rates, quick loan approval and disbursement options.. A hassle-free Farm Implement Loan option with competitive interest rates, quick loan approval and disbursement. We also offer personalised financial solutions.
• Used Tractor Loan: In case you want to explore more cost-effective options, you can apply for a pre-owned Tractor Loan and enjoy a flexible repayment schedule catered to your crop cycle.
• Tractor Refinance: It gives borrowers the option to leverage their existing tractor to secure a loan or restructure their current loan to improve terms. 

Eligibility criteria for a Tractor Loan

To qualify for a Tractor Loan from TVS Credit, you need to meet the following criteria:

• You must be an Indian Citizen
• You must be 18-65 years of age if you have an agricultural background and 21-65 in case of a commercial background
• You should be actively employed
• You require a minimum 1 year of stable employment

Documents required for Tractor Loan

You will also need documentation to finish your Loan Application, such as:

• KYC Documents: Copy of Voter’s ID/Driving Licence/Aadhaar Card/PAN Card/Passport
• Address Proof: Copy of Ration Card/Passport/Electricity Bill
• Income Proof: Such as bank statements to support loan repayment
• Asset Document: For land or any other assets

Empower agricultural growth with TVS Credit

Owning a tractor not only makes the agricultural process more efficient but it can truly empower a farmer.

Choose TVS Credit to be your Tractor Finance Company and experience a seamless loan application process.

Enjoy key features such as hassle-free documentation, up to 90%* tractor financing, speedy loan processing, no income document scheme and many such benefits.

Curious to know more about Tractor Loans? Delve into some FAQs below:

1. What are the benefits of a Tractor Loan with TVS Credit?

Benefit from maximum financing, no income proof requirement, easy documentation process and quick loan approval.

2. Why do farmers need Tractor Loans?

Tractors can perform various functions like tillage, sowing, inter-row and harvesting.

It also increases the cropping intensity. If a farmer cannot purchase the tractor upfront, he can avail of a Tractor Loan.

3. Does taking a Loan help the farmers?

Tractors help farmers reap better harvests and automate parts of the farming process; hence a Tractor Loan can be extremely beneficial in obtaining a tractor, making agriculture easy.

3. How much interest rate on Tractor Loan?

At TVS Credit, we issue Tractor Loans with attractive interest rates ranging from 11%-25%.

3. Can we buy a tractor on EMI?

You can purchase a tractor on EMI with TVS Credit and customise the Loan amount, tenure and interest rate using the TVS EMI Calculator.

Explore the convenience of our offerings now!

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