How to get Finance for purchasing a Tractor

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How to get Finance for purchasing a Tractor

A tractor is one of the most used equipment in farming activities. Not only farming but also in hauling of the produce. The modern tractors can handle a variety of tasks like landscape maintenance, spreading or moving fertilisers, and more. Considering all of this, tractors are of utmost importance to farmers. But there is a harsh reality that not all farmers can afford to buy a tractor outright. This is when tractor finance helps farmers in getting the right tractor for their farmland. Each lender has different terms upon which a tractor finance facility is available for the eligible farmers.

Let us look at how to avail a tractor loan-

The first step is checking the various finance schemes available. Here you can visit a financial institution like banks or non-banking finance companies (NBFCs) to check your tractor loan eligibility. Alternatively, you can also visit a tractor dealership that assists in availing the requisite finance for your new tractors. Most farmers prefer the latter option.

The next step is an application for your tractor loan. You can either apply for a tractor loan online or visit the branch of your financer. The approval process involves submitting the required documents. The lender assesses your capacity to repay the loan. Tractor loans are generally approved and disbursed within a week if all your documents are in place.

A representative of the financial institution makes a visit. This visit involves checking the accuracy of the facts as mentioned in your application form regarding land and the farming activities that are to be undertaken.

The last step involves signing the tractor finance agreement on successful approval. Your lender checks for your credit score from a reputed credit rating agency like CIBIL. The lender may ask you to submit a handful of documents like post-dated cheques, a copy of your passbook and more for further official purposes.

Lastly, the financed amount is processed and issued to your dealer. On successful receipt, your dealer hands over the delivery of your tractor.

With the digitisation in the country, more and more farmers are choosing to opt for a tractor loan online. There is an ease of application while comparing among various lenders with far lesser hassles of documentation. Also, farmers can use the same resources for buying new crops, fertilizers and other farm equipment as required on an ongoing basis. Avail tractor finance facility according to your needs and see your farm flourish.

Clare Louise

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