In India, tractors are used for agricultural as well as commercial purposes. However, farmers and entrepreneurs may not have the entire amount needed to purchase these vehicles. So, they may apply for finance to buy new or used tractors.
Here are some features of such loans.
- Simple and quick application and approval procedure.
- Flexible repayment tenure from three months up to five years.
- Minimal down payment based on your financial situation.
- Available for a wide range of tractor models.
- Easy documentation requirements.
- No additional collateral like agricultural land required.
- Affordable tractor loan interest rates.
- Customized loans as per your requirements.
The loan is available to farmers as well as non-farmer applicants. You can apply for one if you are aged between 18 years and 60 years. Minimum income requirements may vary from one lender to another but if your annual income is at least INR 1 lakh, you can apply for a tractor loan. Moreover, most lenders require you to hold at least three acres of agricultural land to be eligible for the loan.
A common misconception that prevents you from applying for a loan is the cumbersome documentation requirements. However, lenders like Mahindra Finance require minimal tractor loan documents, which include:
- Aadhar card
- Any one address proof, such as Aadhar card, driving license, voter identity card, or passport.
- Any one identity proof, which includes Aadhar card, passport, Permanent Account Number (PAN) card, voter ID, or driving license.
- Signature verification proof
- Income proof to determine your repayment capability, such as Income Tax Returns (ITR) and financial statements for the two previous years.
- Land ownership documents to show you hold the title to the agricultural land.
Additional documents in some cases may be required, which may include the following:
- Salary or pension income proof
- Record of repayment history
- Registration certificate of any existing assets
You may easily apply for a tractor loan online via the lender’s website. You need to fill the application form and provide some basic information, such as your name, address, and contact details. Thereafter, you must submit the documents online to complete the application procedure. Most lenders complete the process within a few days, ensuring you buy the tractor without any delay and take advantage of it for your farming operations.
Mahindra Finance is a popular non-banking financial company (NBFC) that offers such a loan without any mortgage. Once you submit the documents, it is generally sanctioned within two days. Moreover, the repayment structure is based on your requirements, helping you own a tractor without any hassles. To know more about their tractor loans, eligibility, and application process, visit their official website now.