Tag Archives: tractor loans

Quick Tips to Avail Tractor Finance for Agricultural Purposes

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.

Tractor Finance for Agriculture Purposes

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.


Think Magma for your Tractor Loans

There is a surge in small business set ups. The list isn’t restricted to urban areas alone, but also extends into the rural area. Farmers are ready to venture into modern tools and equipment’s for their agriculture purpose.

One such need is of a good tractor. Well now you do not have to worry about it anymore, as there are many non- banking financial institutions that are ready to finance your tractor owning dream. Let us try to understand the product in detail.


What is Magma’s Tractor Loans all about?

Magma readily finances your tractor owning dream. This financing house provides with all the necessary finance for all the brands of Tractors. Also, they provide you with loans for buying used tractors. You can avail loan up to 95% of the tractor price. The best part is they do not take your land as mortgage.

How to apply for Magma’s Tractor loan?

Applying for a Magma tractor loan is a very easy task. The entire procedure not only comes with minimal paper work but also is completely hassle free. They have their dealers spread across 6000 branches all over pan India. There are village blocks where you can avail help for your tractor financing related issues. So visit your nearest Magma branch anytime and avail the services.

What are the different types of products available under the tractor finance segment?

Magma has divided the tractor financing segment in three different parts. Agricultural, commercial and tatkal scheme are the three categories under which you can apply for a tractor loan. Under the agricultural scheme you can avail loan up to 95%, you are expected to own lands up to 2 acres. With the commercial scheme you can avail up to 70- 80% of loan; however a guarantor and property ownership is required. Lastly, comes the Tatkal scheme, wherein, one can avail loan up to 50- 60% with a guarantor provided.

So visit your nearest Magma branch and avail of the many finance related products they have to offer.