Here Is Everything You Need To Know About Tractor Loan
India has always been a land of agriculture. Did you know that 54.6% of the Indian population earns their daily bread through agriculture and related activities? In the past few decades, the Indian agricultural sector is transforming. Several high-tech machines have been introduced in the field of agriculture to help farmers cultivate their land to its fullest potential and one such miracle machine is a tractor. Tractors have been around in the Indian agriculture industry for a long time but have been far from the reach of a common farmer. That’s not the case anymore though. With every farmer becoming more and more aware of the importance of owning a tractor, banks have started offering a special tractor loan to make it easier for farmers to invest in a tractor.
What is Tractor Loan?
A tractor loan is a financial tool specifically introduced for farmers to purchase tractors and agriculture equipment. It is all about empowering our farmer brothers. This loan was introduced to help farmers earn their livelihood with ease
Tractor Loan Calculator
A tractor loan calculator, just like any other EMI calculator is equipped with the ability to calculate the EMI on your tractor loan. This little tool is extremely helpful in planning your monthly budget before obtaining the loan. It also helps farmers choose the right lender and the best offer available to them
To use the tractor loan calculator, provide the necessary details like loan amount, tenure, and rate of interest, and your monthly EMI amount will be calculated in a matter of seconds
Using a tractor loan calculator is a wise choice because it not only helps you find out your EMI but also allows you enough time to sort out your finances to pay the EMI. In other words, it is the cushion you need when you are in debt.
Tractor Loan Interest Rate
A tractor loan interest rate is the rate at which the loan is offered. This rate of interest must be paid by the borrower along with the monthly EMIs to the lender. Several factors determine whether you will be offered a high or a low tractor loan interest rate. Here is the list of all the factors that affect a tractor loan interest rate:
Repayment history: A good repayment history speaks volumes about you as a customer. Banks generally offer you a lower rate of interest if they consider you an honest customer.
Employment history and income: Good financial health is a sign of a good customer. If you have a good employment history and a steady source of income, banks are more likely to give you a lower rate of interest
Loan tenure:The duration in which you repay your loan in the form of EMIs is your loan tenure. The longer the tenure, the lower will be the interest, however, the overall cost of the loan will be high. The shorter the loan tenure, the higher the rate of interest, but the cost of the loan will be significantly lower.