Learn Everything about Applying for a Tractor Loan
09 December, 2022
Running a farm or operating a business can be a challenging endeavour. Having the right equipment can make your job a lot more seamless. One such piece of machinery is a tractor. From ploughing and tilling the land to lifting heavy equipment, a tractor can help increase the speed and efficiency of your enterprise. However, purchasing a tractor can be a heavy investment. To help shoulder the financial burden, you can always count on a tractor loan. Continue reading to learn more about what you should know and how to apply for a tractor loan.
What is a Tractor Loan?
A tractor loan is a term loan like any other. If you are considering buying a tractor but require financial assistance, you can opt for a tractor loan. The bank or financial institution will process your application and disburse the funds if approved. You will have to repay the loan amount over a tenure chosen. Most banks allow you to repay the borrowed amount via Equated Monthly Instalments (EMIs). You also have to pay interest as per the rate levied by the bank.
What are Things You Should Know Before Applying for a Tractor Loan?
If you are considering opting for one, here are things to know for a tractor loan application:
Rate of Interest:
As a tractor loan applicant, your primary focus should be the rate of interest levied by the lender. Some banks may have a set rate of interest, while others may levy one as per your credit score, tenure, the amount required, etc. Whatever the case, always consider the interest rate before applying for a tractor loan, as it can have a significant impact on repayment.Tenure:
As far as tractor loans are concerned, lenders usually offer tenures that go up to a maximum of 84 months. Do note that while a longer tenure allows you to pay lower EMIs every month, over the course, the interest you pay will be more. The shorter your tenure, the lower will your overall interest be.Collateral:
When you apply for a tractor loan, some lenders do require you to hypothecate assets. These assets act as collateral and provide security to the lender in case you default on repaying the loan. However, today you will also find lenders who do not require you to provide any collateral to avail of a tractor loan. Thus, while choosing a lender, make sure to check if collateral is required or not.Vehicle:
While opting for a tractor loan, it is best if you have an idea of the kind of vehicle you want to purchase. You can seek a loan amount accordingly. Plus, you should also check if your lender offers old tractor loans. They are the same as tractor loans, but you can use the funds availed to purchase second-hand or used tractors.
How to Apply for a Tractor Loan?
Applying for a tractor loan is quite straightforward. Although the exact process differs from lender to lender, the general procedure is as follows:
Make sure you meet the eligibility criteria set by the lender in question.
Fill out the application form to apply for the tractor loan.
Submit any documentation required by the lender.
Wait for the lender to process and approve the application.
Once approved, the funds will be disbursed to your account.
Today, you can apply for a tractor loan both offline and online.
Does the idea of a tractor loan make purchasing a tractor that much more feasible? If you said yes, then the HDFC Bank Tractor Loan is perfect for you. HDFC Bank’s Tractor Loans offer up to 90% of the total tractor cost! You can avail yourself of new and old tractor finance. You can choose from a flexible tenure, enjoy easy EMI payments, and much more!
Click here to apply for the HDFC Bank Tractor Loan and expedite your endeavour!
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Tractor Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
