New tractor loan
Pick the tractor. We will find the money on terms you can live with for the next five years.
How much of the tractor gets financed
Lenders fund a large share of the on-road price and expect you to bring the rest as margin money. The exact share depends on the lender, your land holding and your repayment record — a borrower with a long relationship at a branch and clean land records will be offered materially more than a first-time applicant with neither.
Note that the loan is usually calculated on the on-road price, which includes registration and insurance, not the ex-showroom figure quoted in an advertisement. That difference is often larger than people budget for.
What decides your interest rate
- Whether it is an agricultural loan. Tractor loans made for farm use are treated as agricultural lending and are priced differently from a commercial vehicle loan on the same machine.
- Your land holding. Land is the primary security. More of it, clearly titled, means a better rate.
- Credit history. A clean record earns a lower rate; a thin file does not disqualify you, but it costs.
- Your existing bank. The branch that already sees your money moving through it will often price better than a stranger.
- Tenure. Longer tenures sometimes carry a slightly higher rate, on top of the extra interest the length itself creates.
Compare the total cost, not the EMI. Two offers with the same monthly instalment can differ by a large amount over the life of the loan if one runs longer than the other. The EMI calculator shows the total interest for exactly this reason — that is the number to compare.
Before you sign
- Ask for the processing fee as a rupee amount, not a percentage.
- Ask what the foreclosure charge is, and when it drops. Most borrowers repay early.
- Check whether the rate is fixed or floating, and what it is benchmarked to.
- Confirm whether insurance is bundled into the loan and at what price — you are free to buy it elsewhere.
- Get the repayment frequency in writing if you have agreed a half-yearly or harvest-linked schedule.
Not sure which tractor yet? Browse the full catalog and on-road prices on tractorkharido.com, then come back with a model in mind — the offers get sharper when the lender knows exactly what is being financed.
Frequently asked questions
How much loan can I get on a tractor?
Most lenders finance a large share of the on-road price of a new tractor, with the rest paid as margin money by you. The exact percentage depends on the lender, your repayment record and whether the loan is against land, salary or an existing banking relationship — which is why the offers we bring you are compared side by side rather than quoted upfront.
What documents are needed for a tractor loan?
Identity and address proof (Aadhaar, PAN, voter ID), land records such as the 7/12 extract, Khasra or Khatauni, the last six to twelve months of bank statements, passport-size photographs and the tractor quotation or proforma invoice from the dealer. A used-tractor loan also needs the RC and a valuation.
Can I get a tractor loan without land in my name?
It is harder but not impossible. Lenders treat agricultural land as the primary security, so without it you will usually need a guarantor, a strong banking history, or to route the loan as a commercial vehicle loan if the tractor is used for haulage. Tell the advisor your situation and they will point you at lenders who accept that profile.
What tenure can I choose?
Tractor loans commonly run for several years, and many agricultural lenders let repayment follow the harvest cycle — half-yearly or yearly instalments instead of monthly. Longer tenure means a smaller instalment but more total interest; the EMI calculator on this site lets you see that trade-off before you commit.
Does a low CIBIL score stop me from getting a tractor loan?
It narrows your options and usually raises the rate, but agricultural lending is judged on more than the score — land holding, cropping pattern and existing relationship with the branch matter too. Several NBFCs specifically lend to first-time and thin-file borrowers.
Can I repay the loan early?
Yes. Foreclosure is allowed by every lender, but the charge for it varies and some waive it after a minimum number of instalments. Ask for the foreclosure clause in writing before you sign — it is the single term borrowers most often discover too late.