
SBI Bank- NEW TRACTOR LOAN SCHEME
SBI tractor loan help farmers and business owners to buy tractors easily. With this loan, you can finance the purchase and pay it back in small, manageable amounts. The SBI tractor loan EMI calculator helps you check your monthly payments, making it easier to plan.
The SBI tractor loan interest rate is competitive, with flexible repayment terms, including options for up to 5-7 years. By using the SBI tractor loan calculator, you can check the EMI based on your budget, ensuring the loan is affordable and fits your financial needs.
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About SBI Bank Loan/Finance
Are you a farmer or business person looking to buy a tractor to ease your workload? The SBI Bank Tractor Loan is here to help! SBI offers financing options that cover up to 90% of the tractor’s value, making it easier for you to purchase without paying the full cost upfront.
With a SBI Tractor Loan, you can buy new or used tractors at competitive interest rates, and less land mortgage is needed. You’ll also enjoy flexible repayment terms, insurance coverage, and a choice of tenures. Tractor Junction aims to support farmers and business owners, helping you invest in a vehicle that powers your work and success.
What Do Farmers Need to Get a SBI Tractor Loan?
When applying for a SBI Bank tractor loan, farmers must meet certain requirements to increase their chances of approval. Understanding these key factors can help simplify the process. Check the things farmers need to have to successfully obtain a tractor loan, including land ownership, income proof, and necessary documentation.
- Land Ownership: Farmers must own land to qualify for a SBI Bank tractor loan. Without owning land, the chances of getting a loan are low, as this is a key requirement for all banks. Under the SBI tractor loan schemes, farmers can receive 70-90% of the loan based on these factors.
- Land Verification: Farmers need to provide documents proving ownership of their farming land. This verification process ensures eligibility for the loan, as required by most banks, including SBI tractor loan interest policies.
- Monthly Income Proof: Proof of regular monthly income is necessary to show that farmers can repay the loan. Banks use this to determine loan approval.
- CIBIL Score: A CIBIL score is mandatory to secure a SBI Bank tractor loan. Even if farmers have a low credit score, they can still apply for loans. However, maintaining timely repayment is crucial to improving their standing. While a lower score may be accepted, having a better CIBIL score significantly increases the chances of obtaining a lower interest rate on the loan.
- Old Tractor or Additional Business: Farmers who own an old tractor or have another business can qualify more easily for loans, improving their chances of loan approval.
- Documentation: Proper paperwork is crucial, but banks like SBI Bank offer easy documentation processes, making it simpler for farmers to get up to 90% of the loan amount.
- EMI Interest Rate: The interest on SBI tractor loans can vary depending on how often it is calculated. It may be calculated monthly, quarterly, or yearly. This means that the total interest paid on the loan will be different depending on the chosen payment schedule.
What is SBI Tractor Loan EMI Calculator
The SBI Tractor Loan EMI Calculator is a handy online tool that helps you estimate your monthly payments. By entering the loan amount, interest rate, and loan tenure, the calculator provides an accurate EMI figure to help you plan your finances.
With the SBI tractor loan calculator, you can adjust the loan amount and tenure to find a repayment option that works best for your budget. It’s a smart way to ensure you can comfortably manage your payments before applying for a loan.
Purpose
Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements
Eligibility
Any individual or group of individuals i.e., JLGs/SHGs, institution or organization are eligible for finance which will have sufficient and regular income either from own farm activity or custom hiring incomes from the tractor proposed to be purchased and its accessories. Borrower should possess a minimum land holding of 2 Ac.
Margin
Minimum of 15%.
Primary security
Hypothecation of Tractor & Accessories.
Insurance:
The tractor and accessories purchased with bank?s finance have to be comprehensively insured for the full value.
Collateral Security
Mortgage of landed property valued equivalent of 100% of loan value.
Interest
12% p.a.
For prompt repayment, further concession of interest @1.00% by way incentive will be extended to the borrower and 0.50% to the tractor dealer. Concession will be extended in the month of july and will be on the basis of interest recovered between 1st July to 30th june of every year.
Upfront fee
0.5% of loan amount has to be charged as upfront fee.
Repayment
Loan is repayable in equated monthly installments in 5 years, including grace period of 1 month. (Relaxed in tune with the regular flow of funds in the hands of the borrower).
Postdated cheques will be obtained from the borrower for the EMI
EMI per Rs 1 lakh Rs 2225
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