Agriculture has been and continues to be the largest sector of the Indian economy. This sector employs almost 50% of the working population of the country. The demand for agriculture continues to grow because of the increasing population.
To provide the push needed for growth of the Indian agriculture sector, banks across the country are offering different kinds of financial assistance. Non-banking finance companies (NBFC) are getting into agreements with equipment manufacturers like tractor companies to provide newer opportunities for the growth of this most important economic driver.
Tractors are the foundation of the farming industry and financing for this equipment is being offered by NBFCs. The Indian tractor industry is one of the largest across the world.
How to Avail Tractor Finance?
To begin with, farmers need to contact a dealer to purchase a tractor. Alternatively, they may consider approaching an NBFC to avail a tractor loan. NBFCs have established a suitable network in rural and semi-urban locations across the country.
Lenders have developed tractor funding after considering the unique needs of the rural population. This ensures the entire process of applying for and availing the loan is simple and straightforward. The documentation requirement is minimal, with a faster processing period for the benefits of borrowers.
Funding is available for various brands and makes, which ensures farmers can avail loans irrespective of their choice. Some of the lending institutions offer such financial assistance online for the added convenience of borrowers.
Requirements
The eligibility of applicants is based on their credit history and individual needs. The applicant needs to be an agriculturist and salaried to avail agriculture equipment finance. The amount varies on the basis of the chosen brand and some institutions offer up to 90% of the purchase cost of the tractor.
Tractor funding is available for farmers, without mortgaging their land. These can be customized as per individual needs, with tenure ranging from 3 months to 5 years. The down payment that must be made by the farmers is also low and is determined on the financial liquidity of the applicants.
Interest Rates
To further boost the agriculture industry, several NBFCs provide this kind of financial assistance at lower rates of interest. Lenders also offer flexible payment plans that may be monthly, quarterly, or half-yearly.
Tractors are crucial for increasing output and productivity in the sector. This fact has been recognized by the financial institutions that have been helpful in the growth of the agriculture equipment market in India. Farmers now have the option of applying for tractor funding and can benefit from the versatile terms offered by NBFCs that are suitable to the rural needs of the country.
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