Financial institutions provide loans to farmers to purchase new or used tractors. The tractor may be used either for agriculture or for commercial purposes. Such loans have several beneficial features as listed below:
- No land required as collateral
- Repayment tenure between three months and five years
- Customizable to suit individual requirements
- Easy documentation
- Quick sanction and fast disbursal
- Minimum down payment based on your financial situation
The entire procedure to apply for tractor loans is simple and quick. You may either apply online or visit the nearest branch. Here is how to apply for a loan:
- Check eligibility
The eligibility criteria may vary from one lender to another. However, most lenders may require you to own a certain minimum acreage of land to be eligible for a tractor loan. Moreover, you must have adequate income to ensure you are able to make timely payments on the borrowed amount.
The documents needed for such loans are minimal and not complicated. You need to submit the Know-Your-Customer (KYC) documents and proof of income to apply for a tractor loan from Mahindra Finance.
- Provide details
When you apply for the loan online, you must provide some basic details. These include your personal information such as name and birth date along with your contact details. You will have to have to submit employment type, income details, and the loan amount required to enable the lenders to process your tractor finance application.
- Review terms and conditions
Before you make your decision, it is important you check all the terms and conditions. You need to determine the rate of interest, the repayment tenure, processing fees and other charges, and monthly installments to ensure there are no surprises in the future.
The demand for finance for tractors is slowly rising due to its easy availability and hassle-free procedure. The documents required are minimal, which reduces your efforts and saves time. More importantly, you do not need to provide additional collateral like land to avail of such loans.
Several lenders provide these types of loans and it is recommended you compare various institutions to make an informed decision. You may research online to compare different lenders, check terms and conditions, and other details prior to applying for a loan.
If you want to buy a tractor, apply for a loan today and achieve your dreams.