What are the Benefits of Tractor Loans to Farmers?

12 December, 2022

​​​​​​​As a farmer, tilling your land and cultivating produce is a challenging job in itself. However, having the right machinery, like an efficient tractor, can go a long way in helping you run your farm. Since purchasing a tractor can be a heavy investment for many, you can opt for a tractor loan to reduce your financial burden. Here's how tractor loans can benefit farmers like you.

What are the Benefits of Tractor Loans to Farmers?

Agriculture loans for tractors help farmers in the following ways:

• Manage Costs:
  
  Purchasing a tractor can be a heavy investment. If you are a farmer looking to buy a tractor, you will probably have to save up to make such a significant purchase. Doing so can be a time-consuming process. And even then, you have to pay a substantial sum upfront while buying the vehicle. However, if you apply for a tractor loan, you have a lender who will shoulder the cost with you. Thus, you can bypass the time spent saving for the cost of a tractor. Plus, your investment in the upfront payment will also reduce.
  
  

• Accessibility:
  
  Earlier, farmers had to rely on traditional forms of financing to purchase equipment and machinery. With tractor loans, you have access to a modern financing solution. Tractor loans enable you to rely on reputed banks and financial institutions to help you get the kind of support you need.
  
  

• Repayment:
  
  While tractor loans do help in managing the purchasing cost, what about repayment? Lenders offering tractor loans for farmers have made repaying the borrowed amount feasible too. If you avail of funds via a tractor loan, you can easily repay the principal and interest amount via Equated Monthly Instalments (EMIs). Thus, the payment of the borrowed amount is spread across the entire tenure of the loan. Plus, you can calculate the EMI you are comfortable with paying ahead of time using online calculators. It helps you determine the offer value and tenure while negotiating terms with the lender.
  
  

• Collateral:
  
  Today, you will find lenders who are offering farmer loans for tractors with or without the provision of collateral. While some banks and financial institutions require you to hypothecate assets as security, others do not. Thus, you can peruse through the lenders and pick one that suits your needs.
  
  

• Vehicle Choice:
  
  Lastly, when you apply for a tractor loan, you get to choose the vehicle you want to purchase. Often applicants have an idea before they approach the lender. Thus, they ask for an offer amount as per the price of their chosen tractor. Apart from the model, make, size, etc., you can also choose between new and used tractors. You can avail of a tractor loan even if you want to purchase a used vehicle. Thus, you can exercise complete autonomy in choosing the tractor best suited to your needs.
  
  

Do the perks of a tractor loan sound too good to pass up? Worry not; HDFC Bank has a Tractor Loan that offers up to 90% of the tractor's cost. Plus, we also offer highly competitive interest rates, easy repayment options, insurance, and much more!

Apply for the HDFC Bank Tractor Loan today!

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Tractor Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.