Tractor Junction Receives RBI NBFC Licence, Enters Used Tractor Lending

Tractor Junction has received a Type II NBFC-ND-ICC licence from the Reserve Bank of India (RBI) to operate a Non-Banking Financial Company through its group entity, Dhanrise Finance Private Limited. With this licence, the company will move beyond digital financial services and begin direct lending through Dhanrise Finance. It aims to improve access to finance for farmers purchasing used tractors. 

The lending operations will begin in October 2026 in Rajasthan and Madhya Pradesh, with a target of ₹100 crore in loan disbursements over the first 24 months. To speed up the process, the company will use AI-based tractor  valuation and underwriting to reduce loan approval time from 8–10 days to under 24 hours. It also aims to make used tractor loans easier to access for small and marginal farmers.

Expansion Plan for Dhanrise Finance 

After starting operations in Rajasthan and Madhya Pradesh, Dhanrise Finance plans to expand its lending services to Uttar Pradesh and Maharashtra. The company expects to offer loans between ₹3 lakh and ₹5 lakh.

The expansion aims to improve access to finance for used tractor buyers. According to Tractor Junction, only about 30% of used tractor buyers currently get formal loans, leaving an estimated ₹50,000 crore credit gap for nearly 15 crore farming families.

While loans for new tractors are usually available at around 12% interest, buyers of used tractors often wait 8 to 10 days for loan approval and may pay financing costs of up to 30% IRR. The company also said that refurbished tractors, even after improvements worth ₹25,000 to ₹50,000, often do not qualify for bank loans. Because of this, many farmers continue to depend on local moneylenders who charge 30% to 40% interest.

AI-Led Valuation and Underwriting Data to Speed Up Loan Approvals

To improve credit assessment, Dhanrise Finance will use four years of used tractor pricing data, a 120-point tractor inspection, AI-based tractor valuation, and computer vision to assess tractor condition. It will also use computer vision based condition to analyse farmland, estimate crop income, and align loan repayments with harvest cycles. 

Using these technologies, the company aims to reduce loan approval time to under 48 hours, with a long-term goal of bringing it down to less than 24 hours.

Existing Rural Network to Support Lending

The new lending business will be supported by Tractor Junction's existing rural network and fintech operations. Its digital platform receives more than 6 crore visitors annually, while its retail network operates in 100 cities across six states and sells over 500 used tractors every month. 

Its fintech arm, FINJ, is present in 17 states through a network of more than 30,000+ channel partners. It currently facilitates nearly ₹350 crore worth of used vehicle loans every month, giving Dhanrise Finance a strong base to expand its lending operations.

CEO Shares Vision for Rural Finance

Commenting on the development, Rajat Gupta, CEO and Founder of Tractor Junction, said:

“India has more than ten dedicated used-car financiers, but not a single institutional used-tractor specialist — even though the unmet credit need is ₹50,000 crore. With Dhanrise Finance, we close the loop between discovery, purchase and financing, and put fast, fair and affordable credit within reach of every farmer. It is the natural next step in our journey of building the operating system for rural India's mobility economy.”

Loans to Qualify Under Priority Sector Lending

All loans issued by Dhanrise Finance will qualify under the government's Priority Sector Lending (PSL) guidelines for agriculture. The company added that, for many borrowers, these loans will be their first formal relationship with a bank or financial institution.

The RBI approval comes after a strong financial year for Tractor Junction. In FY26, it reported ₹198.4 crore in revenue, marking a 62% year-on-year increase. Earlier, in November 2025, it raised ₹200 crore (USD 22.6 million) in a Series A funding round led by Astanor, with participation from existing investors Info Edge and Omnivore.

About Dhanrise Finance

Dhanrise Finance Private Limited is an RBI-registered NBFC-ICC and a wholly owned subsidiary of Tractor Junction. Based in Noida, it provides financing for used tractors and rural vehicles, with a focus on farmers and rural business owners across India.

Disclaimer: Reserve Bank of India neither accepts any responsibility nor guarantees the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for discharge of any liability by the company.

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