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Tractor Loan/Finance/Refinance
KOTAK MAHINDRA BANK
Introduction
We offer finance for purchase of new and old tractors, harvesters and implements for agricultural / commercial purpose. We are the preferred financier of key manufacturers.
FEATURES & BENEFITS OF TRACTOR FINANCE
- Loan for Purchase of New Tractor / Old Tractor, Implements etc.
- Loans for Captive Usage for existing Customers
- Nation-wide presence
- Avail Life Insurance Shield – Kotak Kisan Suraksha
- Excellent after sale service
- Attractive rates of interest
- Loans up 90% of tractor value
- Personalised service at all branches
ELIGIBILITY FOR TRACTOR FINANCE
- Minimum 3 acres of land in the name of borrower
- Residential stability of 2 years
- 2 years business experience if applicable
DOCUMENTS REQUIRED FOR TRACTOR FINANCE
Pre Sanction Documents:
- Identity proof- Voter ID card/PAN card/Passport/ Aadhaar card,/Driving License etc
- Address proof: Voter ID card/Passport/Aadhaar card/Driving license etc
- Agricultural Land Proof – if available
- Proof of Signature verification
Pre Disbursement Documents:
- Fully executed loan documents
- Original Invoice of the tractor purchased from the dealer
- Margin Money Receipt received from dealer
- Insurance pledged to Kotak Mahindra Bank
INTEREST RATE & CHARGES FOR TRACTOR FINANCE
Schedule of interest rates, fees and charges applicable on tractor finance
Interest Rate Range for Tractor Loan
Max 26%
Min Prevailing MCLR Or Reference Rate
Mean
Loan Processing Charges
Upto 3% of Loan amount
Documentation Charges
Upto Rs. 5000
Stamping Charges
At Actuals
Credit Administration Charges
Upto Rs. 6000/-
Credit Appraisal Charges
Nil
Commitment Charges
Nil
Overdue Interest
Upto 3% of overdue amount, compounded monthly
Collection Charges
30% of penal and cheque bouncing charges
Dishonour Charges Per Instance
Rs. 750.00
Swap Charges (Replacement of PDCs)
Upto Rs. 500 per Swap per Instance
Prepayment Interest / Foreclosure Charges
5% of Principal Outstanding as per reducing balance method
Duplicate Issue of NOC
Rs. 500/-
Solvency Certificate
Nil
No Due Certificate
Nil
Copy of CIBIL Report
Rs. 50/-
Copies of Records (SOA / Amortization Schedule)
Rs. 500/- (Once yearly without any charge. Post that 500 per request.)
APAC Reschedulement
Nil
Part Foreclosure Charge
Nil
Payment Processing Charge
Not Applicable
Valuation Charges for Used/RF Vehicles
Within city - Rs. 1000/-
Outside city - Rs. 1500/-
Repossession Charges
Upto Rs. 15,000/-
Credit Administration Charges
Upto Rs. 6,000/-
Duplicate Foreclosure Statement Charges
Rs. 500/-
NOC for National Permit
Not Applicable
NOC for State Permit
Not Applicable
NOC for Change in Body Type
Not Applicable
Rebooking of Loans
Rs. 2,500/-
Change in Installment Due Date
Rs. 1,000/-
Change in Property / Asset / Collateral
Not Applicable
Copy of Any Property/Loan Document
Not Applicable
Asset Verification Charges - Immovable Assets
Not Applicable
Legal / Incidental Charges
At Actuals
NOC to Convert From Private to Commercial Registration
NRH
NOC to Convert From Commercial to Private Registration
NRH
Re-issuance of Pay Order
Nil
Non Compliance with Sanction Terms and Conditions
Nil
End-use Certificate Delays
Nil
Net Worth Statements Delays
Nil
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Frequently Asked Questions About Tractor Loan/Finance/Refinance
A tractor loan is a type of financing provided by banks or financial institutions to help farmers and buyers purchase a tractor. It allows you to pay the cost in easy installments instead of a lump sum.
Tractor Loan interest rate starts from 9.00% p.a and goes up to 20.00% p.a.
Some commonly required Documents for a new tractor loan are address proof, age proof, identity proof, ownership proof, etc and required documents for a tractor loan vary from bank/FI to bank/FI.
For tractor finance credit score of more than 680 is required but in some cases applicant credit score as low as 520 is also able to get a tractor loan.
Yes, you can pay the tractor finance through EMIs on a monthly, quarterly, and half-yearly basis.
No, you don't have to mortgage land to get a tractor loan.
There is no fixed minimum-maximum amount for tractor loan. Tractor loan amounts can be customized to suit your individual needs.
The maximum loan amount that you can get is 90% of the total tractor price.
Best banks for tractor finance are SBI Bank, HDFC Bank, Kotak Mahindra Bank, Central Bank of India, Axis Bank, bank of Baroda, IndusInd Bank, ICICI Bank, and more.
Tractor loan tenure varies from 12 months to 84 months.
