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What’s in store for you
Types Of Tractor Loan
Loan Benefits & Features
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Loan features
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Types of Loans
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Most Important Terms and Conditions
Documents to get you started
More about Tractor Loan
To apply for a Tractor Loan, you can either visit the HDFC Bank website and apply online or visit the nearest HDFC Bank branch. Click here to apply online.
Enclosed below are HDFC Bank Tractor Loans Interest Rates & Charges.
Here is an exhaustive list of all the fees and charges to be paid for the Tractor loan:
| Description of charges | Tractor Loans |
|---|---|
| Processing Fee * | Up to 2% of Loan Amount NIL Processing Fees for loan facilities up to ₹5 lakhs at customer level, availed by Micro and Small Enterprises, subject to URC submission before disbursal. |
| Premature closure charges* | 6% - if within 6 months from the date of disbursement on the principal outstanding |
| 4% - After 6 months and before 12 months from the date of disbursement on the principal outstanding | |
| 2% - After 12 months from the date of disbursement on the principal outstanding As per BCSBI guidelines, for borrowers classified as Micro and Small Enterprises(MSE) NIL Premature Closure Charges will be applicable for all floating rate loans and for Fixed rate loan facility up to ₹50 Lakh. Bank reserves the right to enquire or ask the documentary proof of source of funds for closure request of loans |
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| Loan cancellation | In the event of cancellation, Interest charges will be borne by the customer. Processing Fee, Stamp Duty and RTO charges are non-refundable charges and would not be waived/refunded in case of loan cancellation. |
| Delayed instalment payment charge | 1.50% per month (18% p.a.) plus applicable government taxes on overdue instalment amount. |
| Legal, Repossession & Incidental charges | At actuals |
| Stamp Duty & other Statutory Charges | As per applicable law |
| CIBIL Charges (only on request) | ₹50/- per instance |
| Duplicate No Due Certificate / NOC | ₹500/- per Instance |
| Duplicate Amortization Schedule Charges | ₹200/- per schedule |
| Cheque / ECS / SI Swap Charges | ₹500/- per Instance |
| Collateral & ACH Documentation Charges * | ₹750/- per case |
| Loan Reschedulement / Re-booking charges | ₹1000/- |
| Cheque / ECS / SI / NACH Return Charges * | ₹550/- per Instance |
| Documentation charges (For Agri Mortgage and Used Tractor Valuation Cases) * | Documents Charges(For Agri Mortgage -₹1500 and For Used Tractor Valuation Cases - ₹1500) |
Note : * Where ever notified GST and other government levies, as applicable, would be charged additionally at the applicable rates.
Average Rates offered to customer during the period of July to Sep 2024
| Bank IRR | ||
|---|---|---|
| Min IRR | Max IRR | Avg IRR |
| 8.99% | 24.00% | 14.92% |
Annual Percent Rate(APR) offered to customer during the period of July to Sep 2024
| Bank APR | ||
|---|---|---|
| Min APR | Max APR | Avg APR |
| 8.99% | 24.01% | 14.92% |
* Exclusive of GST
Frequently Asked Questions
A Tractor Loan operates similarly to other Term Loans. If you're looking to purchase a tractor but need financial support, you can apply for a tractor loan. Upon application, the bank or financial institution will review your request and release the funds upon approval. The loan amount must be repaid over a selected tenure.
To be eligible for a Tractor Loan, farmers must be between 18 and 60 years old, with a minimum annual income of ₹1 lakh. Similarly, individuals in the commercial segment must be aged 18 to 60, with a minimum annual income of ₹1.5 lakh.
HDFC Bank offers competitive interest rates on tractor loans, generally starting around 10.50% per annum. The specific rate you receive may vary based on individual factors such as credit score and loan amount.
HDFC Bank keeps the needs of farmers and business owners in mind and offers Tractor Loans at reasonable and highly competitive interest rates. To learn more about the interest rates applicable on Tractor Loans, click here.
HDFC Bank aims at reducing the financial burden of making the heavy investment of purchasing a new tractor. Thus, with our Tractor Loan, you can avail funds that go as high as 90% of the total value of the vehicle you are buying.
Generally speaking, Tractor Loans are agricultural loans since they are primarily used in that sector of the economy. However, you can also purchase a tractor for using in your business operations. They are also considered to be term loans as the borrowed amount has to be repaid within a specific period of time.
Credit score is a criteria considered by most lenders while approving Tractor Loans. Usually, a credit score of 680+ is considered to be healthy enough. However, in certain cases, even applicants with scores as low as 520 have been able to avail of tractor financing. It is best to check with the lender in question with regards to your specific situation to get a clearer picture.