The loan against tractor or tractor refinance is a great option for the farmers and agricultural owners. It helps them to ensure that there is an additional source of income. This will be helpful for them because it doesn’t result in stress and keeps their income stable and on track. The bank will also pay more interest on this loan, so you don’t have to deal with any form of extra expenses after taking this loan against your tractor.

Things you should know about Tractor Refinance

Are you planning to buy a new or a used tractor? Do you want to refinance your old tractor loan? Do you want to improve your business by purchasing agricultural equipment?

Such questions must be answered before the last minute. Learning about loan against tractor can help you decide whether to take the next step in making your dreams come true.

Existing loan amount

The Loan Against Tractor or Refinancing Loan works as a financing solution for farmers who wish to get a loan amount against their machine. Farmers can apply for funds to borrow money from banks against their tractor, but it comes at a price: you must pay EMIs and principal outstanding amount on your previous loans that could have been recast into this new loan deal.

Tenure of your loan

A loan against tractor is a way to pay off a mortgage or borrow money, either for the down payment on your new tractor or for another purpose. It’s called an “accelerated payment plan,” which means that you’re refinancing sooner instead of waiting for the full term of your loan to end.

EMI of your loan

The EMI calculator is essential to determine the amount you will receive when you take a tractor loan. You can see how much of the loan amount will go into the foreclosure of your existing loan and how much cash you will get in hand to spend by specifying the EMI of your current loan.

Calculate your Tractor loan EMI on TVS Credit to determine your loan tenure. Through TVS Credit, you can also easily repay your EMI by using options like ECS, post-dated cheques or online payment, as per your convenience.

No. of EMIs paid

Before you consider a top-up or balance transfer tractor loan, you need to have paid at least 12 EMIs on your existing mortgage. The number of completed months on your existing contract is also a key factor in determining how much of the original loan amount has been paid already.

How to apply for a tractor loan or refinancing loan?

Tractor refinance is one of the best ways to reduce your current tractor loan burden and utilize that cash for something else. But are you eligible to take such a loan? Here are the eligibility criteria and other benefits of a tractor loan.

Easy eligibility

Small and medium enterprises, who are owners of a tractor as well as ownership of the land on which it stands, can avail of the tractor loan. All you need to have been proof of your ownership in case you’re already paying EMIs against your tractor. To avail of this facility, all you need is a bank account

Hassle-free documentation

You will be required to provide TVS Credit with the original RC of your tractor loan. At the same time, 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, we’ll also need a 6-month bank statement from which the current EMI is paid.

Quick disbursal

TVS Credit tractor loan is designed to enable farmers to buy new tractors without delay. With their online application, it’s easy to apply and get the NOC within a day. Once this is collected, TVS Credit will transfer the full amount of your loan into your bank account in 48 hours.

Speedy loan processing

TVS Credit’s tractor loan is designed to enable farmers to buy new tractors without delay. With their online application, it’s easy to apply and get the NOC within a day. Once this is collected, they will transfer the full amount of your loan into your bank account in 48 hours.

Yes, it’s true you can opt for a hassle-free tractor loan. However, there is no need to pay a huge EMI as the interest rates are very reasonable at TVS Credit. So, if you have an old tractor that has been sitting in your shed for a year looking like an old friend, get it out and start using it again. It will be good exercise while you save a lot of money too.

Click here to get an instant tractor loan.

Or are you already into farming?

You must know farming is expensive! Starting up and running a farm can cost you a bomb!

It is most likely you will need financing, and that’s exactly when farm loans come into the play.

Getting an agricultural loan can be a challenging task. At times, it is difficult to even get into the lender’s door. A farm loan approval needs a lot of homework. It can be an easy task if you have clarity on how much money you need, why you need it and how you are going to pay it back.

Here are some of the most important things to do before you apply for an agriculture loan:

1. Have a suitable business plan

If you just walk up to a lender and say, “I need finance for my agriculture business”, there is a 99 percent chance your loan will not be approved. On the other end, if you go with a proper business plan, the lender will know that you have clarity on what you want to do, where you want to invest, how you will invest and how will you repay off the loan. Make sure your business plan include your background information, mission, goals, objectives, and marketing plan.

2. Ensure your financial statements in place

This is one of the most important steps, as all lenders will want to know if you will be able to pay back the money that you borrowed from the bank. Any lender you approach is going to check your financial ability to repay the loan by reviewing your financial documents like income statement, cash flow statement, farm balance sheet, and business history.

3. Keep your collateral ready

Collateral are your assets that you own and that a bank can use as a recovery, if at all you fail to repay the loan. You must have an asset worth the loan. Make sure you are ready with the answer if you are asked, ‘What assets can you pledge?’ If you have got a non-farm asset worth the loan, the chance of getting your loan approved increases.

4. Prepare yourself for general questions

Though you might think this is very obvious, do not take it for granted. On the basis of the way you answer to the general questions like qualifications and past experience, the lender might determine if your business plan will be fruitful or if you will be able to repay the loan. So, if you want to create a good impression on a lender, you must prepare for the general questions.

If you are ready with the above mentioned things and have your plan in place before you approach the lender for a loan, there are high chances they will approve your loan. Once you get it, you can make an optimised use of the finance in purchasing farm equipment and supplies, refinancing an older loan, improving land with repair work, and marketing campaigns and advertising. A lot of banks also provide tractor loans separately. So, you can check tractor loan interest rate online and then go for it!

Keeping your tractor in top condition is important to make the most of a good harvest. You must dedicate a considerable amount of time and follow proper maintenance steps every day. Here are a few maintenance tips for tractors to keep it in a good shape:

1. Go through the owner’s manual

Every manufacturer gives buyers a user manual that gives instructions about taking care of equipment. So, make sure you get the owner’s manual and follow those tips. It includes maintenance schedule, specifications, location of all parts of equipment, and basic operating instructions.

2. Obtain all the maintenance tools

Maintenance of tractor needs a different set of tools than the ones we need for automobile maintenance. So, make sure you borrow or buy a wrench and all other tools you need to take care of your tractor.

3. Protect the tractor from rain

Make sure you protect your tractor from rain; especially the exhaust system, seat, and instruments. So, either keep it in a garage or cover it well.

4. Check fluids regularly

If any part of the tractor is leaking, the damage may cost a fortune. Refer to the owner’s manual to determine what parts need to be checked. You must check the engine oil, coolant, battery electrolyte, transmission fluid, and the hydraulic oil.

5. Ensure right air pressure in tires

All tractors do not need same inflation pressure. Even in the same tractor, the front and rear tires might need different pressure. So, check the air pressure at regular intervals.

6. Watch out for the brakes

Mostly all tractors have automatic brakes. All you need to do is make sure your braking system is lubricated and works well. If your braking system is not in place, you have to get it fixed or replaced as soon as possible.

7. Keep an eye on filters

Dirt and dust can contaminate the system and cause a failure of components. There are filters in tractors to protect the system against these contaminants. It is advisable to check the fuel filter as well as air filter often. Clean it or replace it if it cannot be cleaned up to the mark.

8. Lubricate often

In order for the tractor to function well, it needs to be well lubricated. Make sure, you check the oil level regularly and use heavy duty lubricants. Avoid oils that are used for cars and other light vehicles. Look for the parts of the tractor that move, clean them, and grease them.

9. Do not overload

It is advisable to make use of a recommended size attachment for whatever job you are doing. Make sure you do not overload your tractor or it will wear out soon.

The Life of your tractor depends upon how well you maintain it. Make sure you follow the above-mentioned tips and maintain the tractor to make the most of it.