Benefits of Getting a Tractor Loan from an NBFC

Agriculture is a significant part of India’s economy. At the same time, tractors are the backbone of the nation’s modern economy. However, buying a tractor is a big investment for farmers and farm owners. It is difficult for many farmers to collect the necessary funds to buy one. This is where Tractor Loans from NBFCs come into play.

Non-Banking Financial Companies (NBFCs) have become a popular choice for farmers and small business owners looking for affordable Tractor Loans. NBFCs offer more flexible and farmer-friendly financing solutions. They understand the seasonal nature of agricultural income and provide customised loan options.

What Are NBFCs and How Do They Differ from Other Financial Institutions?

NBFCs are financial institutions that provide loans and other financial services but do not hold a banking license. TVS Credit is one such NBFC that provides specialised tractor financing options in India, making them a preferred choice for farmers.

NBFCs are regulated by the Reserve Bank of India (RBI) but do not accept public deposits. They function independently and are known for their customer-centric approach. NBFCs cater to specific market segments, such as farmers, agri-business owners, and rural entrepreneurs.

NBFCs rely on innovative lending models that reduce dependence on traditional credit scores. Instead, they evaluate loan eligibility based on practical financial indicators such as land ownership, agricultural produce, and overall repayment capability. This makes them more accessible to individuals who may not qualify for a bank loan due to a lack of formal proof of income or credit history.

NBFCs also tend to have a more localised presence, with representatives who visit rural areas to assist with documentation and loan approvals. This hands-on approach helps bridge the financial gap between organised lending institutions and the rural economy, ensuring that farmers can avail themselves of timely financial support without unnecessary delays.

Key Benefits of Getting a Tractor Loan from an NBFC

1. Flexible Eligibility Criteria: TMany farmers do not have a regular income or a strong credit history. One of the major benefits of Tractor Loans from NBFCs is that they offer loans with easier eligibility norms, making it possible for more farmers to buy tractors. This inclusivity ensures that even small-scale farmers can upgrade their agricultural machinery.

2. Quick Loan Processing: Time is vital during sowing and harvesting seasons. NBFCs process loans faster. Tractor Loans from NBFCs get approval within a few days. This ensures farmers get their tractors on time. This quick approval helps farmers avoid delays in farm operations and maximise their yield potential.

3. Customised EMI Options: Farmers have seasonal earnings, and NBFCs understand this. They offer repayment options like:

– Quarterly or half-yearly EMIs instead of monthly payments, reducing financial burden during lean periods.

– Balloon payments, where EMIs are initially lower and increase later when income improves, allowing better financial planning.

– Flexible loan tenure, making repayments easier and ensuring financial stability for farmers.

4. Affordable Interest Rates: NBFCs like TVS Credit offer affordable New Tractor Loans at competitive rates compared to other NBFCS. While RBI determines bank interest rates, NBFCs follow distinct guidelines for setting their interest rates, which can vary within a range of 8% to 20%. These rates are influenced by several factors, including the borrower’s credit profile, loan tenure, repayment capacity, type of tractor, and market conditions. Affordable interest rates reduce the overall payment burden, making it easier for farmers to manage their finances.

5. Strong Rural Presence: Many NBFCs, including TVS Credit, operate in rural areas, ensuring farmers get the financial help they need. Their branches and agents provide doorstep services, making the loan process hassle-free. This extensive rural network ensures farmers in remote areas can access the best financial solutions without travelling long distances.

6. Up to 90%* Financing: TVS Credit offers up to 90%* financing on Tractor Loans, allowing you to own a new tractor with advanced features without straining your budget. This high loan-to-value financing makes it easier for farmers to invest in the right equipment while maintaining financial flexibility.

7. Additional Financial Support: Some financiers like TVS Credit, also provide additional financial services, such as Used Tractor Loans, insurance, Farm Equipment Loans, and refinancing options. Once you take Tractor Loans from them, it becomes easier to avail of other loans without any additional procedure. This added support helps farmers secure their investments and upgrade equipment as needed.

Comparison: NBFC vs Bank for Tractor Loans

Steps to Apply for a Tractor Loan from an NBFC

Applying for a tractor loan with NBFCs like TVS Credit is easy and simple. Here is how you can proceed:

1. Check Eligibility:

– Nationality: Indian

– Age: 18 to 65 years* (Agri background) and 21 to 65 years* (Commercial background)

– Occupation: Farmers, Agri-Business owners, land owners, and individuals with commercial backgrounds.

– Status of employment: Active

– Employment stability: Minimum 1 year

2. Required Documents:

3. Steps to apply:

– Select Your Vehicle: Decide the tractor for which you want to avail the loan.

– Submit the required details: Upload the necessary documents and get your loan approved.

– Loan Sanction: TVS Credit processes applications promptly. You will get a call from the sales executive to get your loan disbursed without any delay.

Good to Know

Before or after taking a tractor loan from an NBFC, here are some important points to keep in mind:

• Hidden Charges: Always check for processing fees, prepayment penalties, and late payment charges before signing the loan agreement. At TVS Credit, we offer New Tractor Loans without any hidden charges which makes it transparent and easy to apply.
• Government Subsidies: The government provides various subsidies and schemes to help farmers with tractor financing. Check if you qualify for any assistance to reduce your loan burden.
• Insurance Coverage: Consider insuring your tractor to protect against unforeseen damages, theft, or natural calamities.
• Seasonal repayment Options: If your income is seasonal, discuss customised EMI plans with the lender to ensure smoother repayment.
• Maintaining a Good Credit Record: Timely repayment of your tractor loan improves your creditworthiness, helping you secure better financial products in the future.

Choosing the best NBFCs for Tractor Loans has many benefits. With easy eligibility, quick approvals, and flexible repayment options, NBFCs make tractor ownership simple for farmers. We offer tailored financial solutions, ensuring that every farmer can access modern machinery without financial stress.

If you are looking for an affordable Tractor Loans, explore the options available at TVS Credit and fulfill all your farming needs without any hassle.