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“Important Information on the Company name change to L&T Finance Limited (formerly known as L&T Finance Holdings Limited)"Click Here

“Important Information on the Company name change to L&T Finance Limited (formerly known as L&T Finance Holdings Limited)"Click Here

“Important Information on the Company name change to L&T Finance Limited (formerly known as L&T Finance Holdings Limited)"Click Here

Here's everything you must know about tractor finance

Dec 22, 2022

5 min. Read


Authored By: L&T Finance

Here's everything you must know about tractor financeFarm Equipment Loan

Here’s Everything You Must Know About Tractor Finance

Suraj is the son of Ravikant, a hard-working Indian farmer who invests all his energy and money to get the best out of his piece of land. Suraj watches his father pour his heart and soul into farming day and night throughout the year. From the scorching heat of May to the freezing cold of December, no form of extreme weather can stop his father. Suraj, being an educated person, wants to do something for his father that would ease the process of making a livelihood, and would also assist his aging father. He decides to use tractor finance to buy a brand-new, high-tech tractor for his father. Needless to say, his father feels extremely grateful for a thoughtful son and for tractor finance that will make his life easy. With a tractor, Ravikant will not only be able to reap a lot of profits from farming, but will also have time to relax. All thanks to tractor finance.
Let’s understand the tractor finance meaning.

What Is Tractor Finance?

Tractor finance is a facility offered by banks and financial institutions through which you can borrow funds and buy new or used tractors. With tractor finance, you are allowed to even get your tractor or other agricultural equipment repaired. In short, the purchase or repairs of a tractor can be covered with funds borrowed under tractor finance.

A tractor is a farmer's dear friend, and in this day and age where everybody is trying everything to succeed, farming without a tractor is out of the question. This is why we highly recommend borrowing tractor finance from L&T Finance, the best tractor finance company

Tractor Finance Rate

The tractor finance rate is the interest rate at which funds to buy a tractor are provided. This rate depends on a lot of factors; however, L&T Finance offers the most affordable interest rates, starting at just 10.75% per annum. Your credit score, stability in business, and criminal background are some of the few factors that play a crucial role in helping banks decide the appropriate tractor finance interest rate for you.
Here are some tips you can follow if you want a low tractor finance rate:

If you have borrowed any loans, make sure you pay all the EMIs on time and build a good credit score for yourself.
Choose a comfortable loan tenure that will give you a low rate of interest, but remember that this will increase the total cost of your loan.
Pay a large amount as a down payment as this decreases the principal amount on which the interest is charged.

Tractor Finance Calculator

A tractor finance calculator is an online calculator that instantly shows you your monthly EMI based on the rate of interest and loan tenure. This calculator can be used regardless of whether you have applied for tractor finance or not. Using this tool for your personal research is a great strategy for making a concrete plan. The tractor finance calculator can be accessed from the website of L&T Finance, where you will see a sliding calculator. To use this calculator, move the slider to the required loan amount, loan tenure, and interest rate. The calculator will instantly display your monthly EMI, allowing you to plan ahead of time.

Advantages and Benefits of Tractor Finance:

Once you decide to use tractor finance to buy a tractor, you will be able to enjoy a lot of the benefits listed below:

Loan tenure of up to 6 years is offered.

Personalized loans for farmers with varied sizes of land holdings

Tractor finance can also be used to buy used tractors

The repayment options are comfortable and flexible because they are based on harvesting patterns.

The processing charges are affordable, and the documentation process is simple.

Tractor Finance Documents Required

• Income proof: as per submissions made at the time of filing returns
• Bank statements: from the last six months
• ID proof: any personal ID like an Aadhar card, a PAN card, etc
• Age proof: passport, voter’s ID, driving license, etc
• Address proof: : passport, utility bills, bank statements, etc.
• Other documents: : agricultural land documents, NACH/ECS mandates, PDCs, etc

This article is authored by L&T Finance.

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