Tractor finance for agricultural purpose is extremely useful for people whose primary mode of occupation is farming. In earlier days, this occupation was conducted by making use of bullock carts and ploughs but with the advent of technology, things have taken a rapid turn, for the better. The productivity has definitely increased with the usage of tractors and they are useful to simplify the complicated farming process.
The main issue here is the affordability of these machines. Purchasing this machine becomes difficult for some; therefore, quite a number of banks launched flexible tractor loans in order to realise the dreams and ambitions (of the farmers) of owning a tractor and multiplying the output.
The following tips will help you obtain a tractor loan:
Look out for a financer
This is one of the most important tasks because quite a number of financial institutions will offer you varied rates and you need to select one that suits your needs best. This can only be possible if you read the loan documentation carefully of every institution you approach. This will help you decide what is perfectly suited to your requirements.
Apply for the one offering you best interest rates
The interest rates always depend upon the amount you intend to borrow, the duration of the loan (also known as the tenure) and other similar factors. Hence, you should keep that in mind before availing tractor finance for agricultural purposes.
The documents required
In order to avail tractor finance for agricultural purposes, you are required to produce the following documents:
- Documents pertaining to land ownership
- KYC documents (that include your name, age, address and DOB)
- Encumbrance certificate
- Your guarantor’s KYC and ownership documents
You can avail the facility of a foreclosure
You can also avail a provision where you can foreclose the loan before the closing date. This is for all those people who do not wish to remain under the debt of a loan (for a long term). This provision is allowed after the completion of 6 months (commencement) with an additional fee of about 5 percent on the outstanding loan.