A tractor refinance loan offers you a new and easy loan to pay your existing loan. It means that you can get a new loan to settle your current loan. This loan lets you borrow against the value of your tractor. Whether you own the tractor outright or not, it will not affect the loan.
Sometimes people are stuck in some bad loans, which they took during the purchase of a tractor. So, to resolve this problem, they can get a loan against tractor. In this blog, we will let you know the loan against tractor or tractor refinance and how you can apply for this. Along with this, you can also know about the eligibility and myths of this loan. So, let’s know about them one by one.
What You Should Know About Tractor Refinance
You should know about the below-mentioned points for refinancing your tractor. Let’s know about some factors, which can affect your loan against tractor.
1. Current Loan Amount
Your original loan amount plays a vital role in determining the loan amount you will get when you apply for a refinancing tractor. You can usually get a loan against your tractor for up to Rs. 10 lakh or 90% of Tractor value, but that is also dependent on the make and model of your tractor.
A higher original loan amount would mean a higher refinance tractor loan amount. For example, if your actual loan amount is Rs. 6 lakh, the tractor refinance loan amount could be anywhere between Rs. 7-9 lakh, depending on your loan tenure and the number of EMIs already paid.
2. Tenure of Current Loan
The tenure of your original loan is essential to determine the loan amount for refinancing your tractor because the longer your loan term or loan tenure, the higher the cumulative interest charges you will be required to pay over that period. But that also means that you will get a greater loan amount when you apply for tractor refinance.
For example, if you have an EMI of Rs. 15,000 for an original loan amount of Rs. 4 lakh and a loan tenure of 24 months, you will refinance your tractor of approximately Rs. 4,91,759. Out of this, Rs. 2,18,759 will go towards the foreclosure of your existing tractor loan while you get to keep Rs. 2,73,000 as extra used tractor refinance loan amount as cash in hand.
But if your loan tenure is much longer, say 48 months, you would get a higher loan amount when you opt for tractor refinance, approximately Rs. 5,56,490.
However, the extra cash in hand will remain the same (Rs. 2,73,000), while the amount that goes towards the foreclosure of the original loan will be greater, about Rs. 2,83,490. That’s a difference of almost Rs. 65,000 that is determined just by the length of your loan tenure. At Tractor Junction, you can get a Tractor Loan EMI Calculator for your convenience.
3. Emi For Your Current Loan
While the EMI amount you are paying for your current loan is not essential to calculate by the Tractor refinance EMI calculator the amount you will receive when you take a top-up loan against tractor trailer, it will help you determine how that loan amount will be split.
In simpler terms, this means that specifying the EMI of your current loan will allow you to see how much of the loan amount will go into the foreclosure of your existing loan and how much you will get as cash in hand to spend.
4. Number of Paid EMIs
To be eligible for a balance transfer tractor refinance or a top-up tractor loan, you need to have paid a minimum of 12 EMIs on your existing tractor loan. The number of EMIs paid is a crucial factor that helps to determine your loan amount as it indicates how much of the original loan amount has been paid already.
This number will influence the amount of your new loan and the split of the new loan amount between the cash you get in hand and the amount that goes towards the foreclosure of your running tractor loan.
The main factors that determine the loan amount you will get when you take tractor Loan Refinancing are your original loan amount, loan tenure, number of EMIs paid and the EMI amount for your existing tractor loan.
But just how do you calculate the loan amount? We’ve made it easy for you with an instant free Loan Against tractor Loan Amount Calculator. All you require to do is fill in the details of your current loan to see the loan against the tractor amount that you can get.
How to Apply for a Loan Against Tractor
Tractor refinance means you take a loan against your tractor to pay off your existing tractor loan. But the question is that are you eligible for such a loan? Let’s know the eligibility criteria and other benefits of a loan against tractor.
1. Easy Eligibility
To get a loan against tractor, you need to own a tractor. If you’ve got proof of ownership, such as your original RC, you’re eligible to get a loan against your tractor. And if you have a running tractor loan, you need to have paid at least 12 EMIs before applying for tractor refinance. And if you don’t have an existing loan, you can apply for a loan against tractor immediately.
2. Minimal Documentation
We mentioned that you need to submit your original RC as refinance tractor loan documents. Along with that, you only need to provide a bank account statement, KYC documents, and a copy of your PAN card. If you have an existing tractor loan, you’ll also need to submit a 6-months bank statement from which the current EMI is paid.
3. Quick Disbursal
Unlike a business loan which may take weeks to be processed, the loan amount will be credited into your bank account in just 48 hours. Moreover, even if there is a delay in getting the NOC from your current lender in the case of an existing tractor loan, 90% of the amount will still be credited straight to your account, with the remaining deposited as soon as the NOC is collected. So if you need funds urgently, you can rest assured that with a loan against tractor, you’ll have access to the cash you require.
4. Hassle-Free Process
Not only is paperwork kept to a minimum, but the entire tractor refinance process or getting a loan against your tractor is designed to be as convenient as possible. Loan Providers do the hard work and provide doorstep service so that you can stay stress-free through it all.
5. Choice of Financiers
Since we partner with the leading financiers in the country, you can choose from any of them to get a loan against your tractor. Our lending partners include HDFC Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank, Mahindra Finance, etc. So if you’re already a customer of one of these banks or lending institutions, it will be even easier for you to get a loan against tractor online from your bank. Moreover, the tractor Refinance interest rate is between 17.50% to 23.50%.
6. Low EMIs, High Loan Amounts
When you take a loan against tractor, you can get a loan of up to Rs 10 lakhs or 90% of Tractor Value while paying EMIs as low as Rs 2,300 per lakh. That’s a win-win condition any way you look at it. Add to this the favourable loan against tractor interest rate that tractor refinance offers, and a loan against tractor becomes an attractive option for anyone looking to fund their dreams or handle a crisis.
Doubts in Tractor Refinance
Personal loans, education loans, business loans, gold loans, tractor finanace, home loans, you’ve definitely heard of all these different types of loans. But did you know that you also have another loan option – one that gives you almost instant access to cash and is remarkably easy to get. All you need to be eligible for this loan is to be a tractor owner.
But since a lot of people are still unaware of the existence of such a loan. And some people who know it have some myths in their mind. That’s why we think it’s only right to bust some of the myths that surround the need for tractor refinancing. This should help clear up some of your doubts.
1. Can’t Take It With My Existing Loan
If you take a loan against tractor while you have an existing tractor loan, a portion of the loan amount will go towards the foreclosure of the current tractor loan and the rest will be yours to spend as you wish. This makes a Loan against used tractor the perfect top-up tractor loan.
In fact, even if you don’t need extra cash but are stuck with a ‘bad’ tractor loan (such as one that charges you high-interest rates, large EMI amounts, comes with a balloon payment or a very long tenure), then tractor refinance will help you end that loan and replace it with a loan having more agreeable terms.
2. Difficult To Get A Loan Against Tractor
As we already mentioned, getting a Loan against used tractor is incredibly easy. The only real criteria you need to be eligible for a loan against your tractor is that you own a tractor. But that’s not all. The actual process of getting the loan is also made completely hassle-free and even includes doorstep service by our executives. Unlike other loans, you won’t even have to wait for days on end to get your loan – the loan amount is credited to your bank account within 48 hours.
As for the documentation? Unlike a business loan or personal loan, you don’t have to show tons of paperwork and proof, you only need to submit the most basic KYC details, a copy of your bank statement and your tractor’s original RC.
3. Tractor will mortgage in It
You can reach the loan amount and with this, you can also use your tractor. Even though it is a secured loan like a gold loan, unlike a gold loan that requires you to keep the gold with the lender until the loan is repaid in full, you will not have to keep your tractor with your loan financier.
Now you know if you’re eligible for a loan against your tractor and precisely what you get when you opt for tractor refinance. We hope this information regarding refinance can be helpful to you. Now, you do not face any problem with getting a loan. Visit Tractor Junction to know more about refinance tractor loan interest rates and others, and calculate the EMI in the tractor refinance calculator.
Download our Tractor Junction Mobile App to get a refinance tractor loan India.
FAQs for Refinancing Tractor
Que. Who can get a loan against tractor?
Ans. An owner of a Tractor can get a loan against tractor.
Que. What is the tractor refinance loan Interest rate?
Ans. 17.50% to 23.50% is the interest rate for tractor refinance loan.
Que. How much time a loan against tractor will take to approve?
Ans. You can get a loan against tractor approved immediately.