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Here is Everything you need to know about Tractor loan

Dec 22, 2022

5 min. Read

Authored By: L&T Finance

Farm Equipment Loan

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.

Tractor Loan EMI Tractor loan EMI is the amount of money you pay your lender each month. They are the installments through which you repay your loan along with the interest. Payments of tractor loan EMI must always be done on time as they play a crucial role in building a good credit score for you. This means, in case you need any other farm loan at a later stage, the lender will be happy to provide it to you

Tractor Loan EligibilityHere are the eligibility criteria you need to fulfill to be eligible for a tractor loan: Your age should be between 18 to 65 years. Your income should be articulated with the size of land holdings and per acre yield

Here are advantages and benefits of applying for a Tractor Loan:
Numerous benefits come with a tractor and a tractor loan gives you access to all of them. Here are some benefits you can reap once you decide to borrow a tractor loan:

• Increase in efficiency: Every farmer dreams of a day when they go to bed without spending every ounce of energy in their body. When you purchase a tractor using a tractor loan, it helps you not only till your land but also helps you maintain your health. It increases the efficiency of the land and the efficiency of the farmer by saving his or her energy.

• A convenient machine: A tractor is a convenient mechanism that allows you to reap the benefits of fertile land. A tractor loan will help you become the owner of this convenient machine without bearing the burden of huge financial expenses.

Documents Required For Tractor Loan
The documentation process for a tractor loan is simple and straightforward. You require only a few important documents to apply for it. Here are the documents required for tractor loan:

• Income proof: As per submissions made at the time of filing returns
•Bank statements: last 6 months
•ID proof: Aadhar card or PAN card
•Age proof: Passport, voter’s ID. driving license etc.
•Address proof:Passport, utility bills, etc
•Other documents: Agricultural land documents, NACH/ECS mandate, PDCs, etc.

At L & T Finance we understand the plight of a common Indian farmer and therefore we offer the most affordable interest rates. We want Indian farmers to be the most successful in the world. With a tractor loan, you can find yourself on the list of some of the most efficient and capable farmers in the entire country. Allow yourself this privilege of earning better profits from your land and save time and money to spend with and on your family. Apply for a tractor loan today and bid farewell to all your concerns related to your annual harvest

This article is authored by L&T Finance.

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