What is a Tractor Loan?
Tractor loan is the most in-demand commercial and farm equipment loan in India. Leading financial institutions have acknowledged the requirement of offering tractor loans for agriculture and commercial activities. Tractor loan, being an agricultural equipment, is more demanded in rural and semi-urban areas of our country. Further, let’s discuss some of the leading banks and tractor finance companies offering Tractor Loan for farmers and individuals, along with eligibility and features.
Tractor Loan from Top Banks – 2022
1) Tractor Loan from SBI
To avail SBI Tractor Loan, minimum 2 acres of land is required to be in the name of applicant
SBI Tractor Loan – Interest Rate, Features, Fees and Charges | |
Interest Rate | 11.95% onwards |
Loan Amount | Cost of tractor, insurance, accessories, implements and registration expenses covered |
Processing Fee | 0.50% of the loan amount |
Repayment Tenure | Up to 60 months with 1 month moratorium |
Repayment Option | Can be paid Monthly, Quarterly & Yearly |
Collateral Security | Registered/equitable mortgage of land for value not less than 100% of the loan amount |
Margin | 15% |
Processing Time | 7 working days |
Pre-payment/Part payment Charges | Nil |
Late payment penalty | 1% p.a. on unpaid installments |
Also Read: How does a bank calculate interest & EMI for tractor loan?
2) HDFC Bank – Tractor Loans
- Loans for the purchase of New or Old Tractors & Farm Equipment
- Loans available Without Land Mortgage and also with Land Mortgage
- Loans available on basis of Income Proof, Repayment History, Registration Certificate
The minimum age of the applicant should be 18 years and maximum 60 years
HDFC Tractor Loan – Interest Rate, Features, Fees and Charges | |
Interest Rate | Competitive Interest rates |
Loan Amount | Up to 90% of the tractor cost |
Processing Fee | 2% of the loan amount |
Repayment Tenure | From 12 months – 84 months |
Collateral Security | With & Without Land Mortgage is available |
Processing Time | Approval within 30 minutes |
Insurance | Coverage Available |
Minimum Annual Income: Rs. 1 lakh for Farmers and Rs. 1.5 lakh for Commercial segment

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3) Bank of Baroda – Tractor Loan
To avail Tractor Loan from Bank of Baroda, minimum 2.5 acres of agricultural land (single or jointly owned) is required to be in the name of applicant
Interest Rate | · Tractor Loan- Agricultural end use and Agri Hiring- 14.50% onwards · Tractor Loan- Agri cum commercial End use- 14% onwards · Tatkal Tractor Loan- 13% onwards |
Loan Amount | Tractor cost covered |
Nature of loan | Term-loan |
Repayment Tenure | Max. up to 72 months |
Margin | · Tractor Loan- Agricultural end use and Agri Hiring- 15% · Tractor Loan- Agri and commercial End use- 20% · Tatkal Tractor Loan- 30% |
4) Axis Bank – Tractor Loan
To avail Tractor Loan from Axis Bank, minimum 3 acres of land holding for farmers
The minimum age of the applicant should be 18 years and maximum 75 years
Axis Bank Tractor Loan – Interest Rate & Features | |
Interest Rate | 17.50% onwards |
Loan Amount | Up to 90% of the tractor cost |
Repayment Option | Can be paid Monthly, Quarterly & Half Yearly |
Collateral | Agricultural land of borrower |
Pre-payment/Foreclosure Charges | 4% of part payment/outstanding amount |
Penal Interest | 2% per month |
Fees & Charges
Cheque / Instrument Swap Charges | Rs. 500 per instance |
Duplicate Statement issuance charges | Rs. 500 per instance |
Loan cancellation / Re-booking | Rs. 500 per instance |
Stamp Duty | On Actuals |
Duplicate No Dues Certificate / NOC | Rs. 500 per instance |
Issuance of Credit Report | Rs. 50 per instance |
5) IndusInd Bank
To avail Tractor Loan from IndusInd Bank, minimum 2 acres of agricultural land is required to be in the name of applicant
IndusInd Bank Tractor Loan – Interest Rate & Features | |
Interest Rate | 14% onwards |
Loan Amount | Cost of tractor covered |
Repayment Tenure | Up to 60 months |
Processing Fee | 5% of the loan amount |
Documentation Charges | 5% of the loan amount |
Loan Cancellation Charges | Rs. 1500 per case |
Pre-closure Charges | 2%-5% of the principal outstanding |
Note: All the above mentioned interest rates, fees and charges are subject to change and shall depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned charges for each loan product.

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Eligibility: For Salaried
- Age Criteria: 21 years till retirement age
- Salary: Minimum Rs. 1.2 Lakh per annum
- Work Experience: At least 3 years & minimum 1 year in present job
- Minimum 1 year in the same place of residence, owned or rented
- Purpose of Tractor purchase to be explained
Eligibility: For Self-employed
- Age Criteria: Min. 21 years & Max. 65 years
- Minimum Rs. 1 Lakh monthly salary, as per IT returns
- Business Vintage: Minimum 3 years
- Minimum 1 year in the same place of residence, owned or rented
- Purpose of Tractor purchase to be explained
Also Know: How to Get Business Loan for Self Employed at Lowest Interest Rates
Some of the Leading Tractor Finance Companies that offer tractor loans at competitive interest rates are Shriram Finance, Mahindra Tractor finance and Swaraj Tractor.
How to Apply for Tractor Loan wth Paisabazaar?
To apply for Tractor loan, follow the below mentioned steps:
- Visit Paisabazaar.com to check and compare loan options
- Fill in and submit the loan application form along with documents
- Bank will verify the form and documents for final approval
- After the loan is approved, bank shall disburse the loan amount in the applicant’s bank account
Documents Required for Tractor Loan
- Identity Proof
- Age Proof
- Address Proof
- Land Documents
- Business address proof, if applicable
- Last 6 months’ salary slips, for salaried
- Appointment letter of current employer
- Income Proof: Last 12 months’ Bank statement
- Last years’ Income Tax Returns
- Purpose of Tractor purchase
Tractor Loan – FAQs
Q1. What is the minimum interest rate that I can avail a tractor loan?
Ans. The minimum interest rate for tractor loans is 11.95% onwards that is offered by SBI.
Q2. What is the maximum loan amount offered for tractor loans?
Ans. Most of the lenders offer full cost of tractor in form of loan to the borrower.
Q3. What is the repayment tenure of tractor finance?
Ans. The repayment tenure of tractor finance ranges between 12 months to 84 months, depending upon loan amount and financial institution.
Q4. Do I need to submit any collateral security for a tractor loan?
Ans. It solely depends on the lender to ask for collateral security, it can be in the form of your agricultural land.
Q5. What is the age criteria to apply for tractor loan?
Ans. The minimum age criteria to apply for tractor loan is 18 years and maximum is up to 75 years.
Q6. What credit score is needed to buy a tractor?
Ans. Credit score is not highly important in getting a tractor loan, as it is majorly owned by farmers who might or might not even have a credit score.
Also Know: What is the Mudra loan? What are the process and eligibility criteria to avail of this loan?