Is Tractor Finance Helping The Farmers

Is Tractor Finance Helping The Farmers

Around 75% of India’s population is dependent on the agriculture system as it is considered to be the main source of livelihood. Being such a huge proportion of the population involved in the agriculture sector, India is still lacking behind in providing the basic livelihoods especially to the rural sectors of the people. There are different causes foreseen for the poor level of the farming system in the country.

So, to overcome this situation, the government policies and schemes play a vital role to get abundant returns from the agriculture system. The main reason is seen that due to lack of financial problems the farmers and the other commercial users, cannot grow the proper crop productivity through which they have to face lots of problems. Thus, to avoid such circumstances several leading banks and government norms are helping in a greater way to get financed for the loans schemes.

In farming Tractors are the versatile farming equipment used for both commercial and agriculture purposes.

Indian farmers are still bearing the problem with purchasing the new tractors or used tractors. Farmers still choose the farming operations with manual labor and costs high.

Role of Tractors in Agriculture

In farming as well as commercial usages, Tractors are versatile farming equipment to a larger extent. With the help of tractors, several mounted implements can be easily attached and functions easily for better crop growth and output results. From harvesting to Ploughing, Tilling, tractors perform a systematized role in agriculture. Tractors are also ideally good for hard work on landscaping, farming, construction work, transportation, and pulling heavy implements. The implements that can be easily attached with the backside of the tractors are – Rotavators, Cultivators, MB Plough, Balers, etc.

For Indian agriculture, farm mechanization through tractors can be the biggest changer in the field of agriculture farming system. Tractor industry contributes to Rs 4-5 billion to the Indian GDP as the major growth of the leading tractor industry. Every tractor industry formulates the tractor sales in every month, however according to the record around 6-7 lakh tractors were sold every year and this is the major increase in the growth of the economy.

As tractors are the primary source of the agricultural system. The farmers first source of farming equipment must come at nominal rate. For farming, covering the larger areas of land for the farming operations, tractors are must and must be available in the nominal range of price. If not, the other way to get the loan is a financing scheme. But, before getting finance for New tractors or Old Tractors, an individual should be aware about the whole process of the financing schemes, through several banks that provide loans on easy terms. Yes, getting a financed loan for your farmland is the better option for those who can’t avail the tractors at one time cash deposit options.

Know More About Tractor Finance

Tractor Loans or Tractor Finance are easily provided to the farmers, businessmen or commercial users. Tractors are ideal for agriculture or commercial usages. As India is a developing country, there are so many farmers in India who can’t afford tractors due to financial circumstances. In this way the Tractor Finance scheme beat the financial crisis of the farmers. To retain such problems many Government and Private Banks, offer tractor loans on the pre-owned tractors at a low interest rates of 10.55% p.a. On the loan repayment option, for seven years upto the processing fee can be of around 0.5%.

Many scholars and financial experts said that, as 80% of the farmers in India are marginal and small farmers, who can’t afford to buy the New tractors Or Used Tractors. In such conditions, tractor finance plays a vital role in the lives of the farmers. They can easily avail loans from the banks ( Private and Public). Out of the total tractor sold every year in India, private banks financed 70% of loan, 10% offered by Government Banks, and 20% offered in terms of cash system.

In Last Ten Years Tractor Finance Has Changed a lot

In the previous years, very few government banks provided tractor loans. But, now there are several private and commercial banks that provide easy loan facilities for the growth and the development of the farming and tractor industry. The farmers’ mind has also changed over the years, as the fast responsive and quick loans can be availed by the banks. Some banks also provide the facility of providing the loans while sitting at home and get all the details about the
Financing schemes.

Now-a-days, there are several banks that provide easy loans at low interest rates. Some of them are as follows:

ICICI Banks – This is one of the popular banks that provides easy loan amount upto the lenders terms and conditions with low interest rate of 13% p.a. to 22% p.a. The loan tenure can be availed for 5 years.

Axis Bank – Next comes, the Axis Bank that can finance upto 90% on the tractor loans. The duration of the tenure is up to 60 months for 17.50% p.a. to 20% p.a of interest rate.

State Bank Of India – The most trustable bank amongst the individuals, the tractor loans is availed upto 100% of loan amount with interest rate of 9.00% 10.25% p.a. The loan duration tenure is upto 5 years.

HDFC Bank – Another bank HDFC offers loan amount upto 90% with interest rate of 12.57% p.a. to 23.26% p.a. Within the duration of upto 60 months.

MAGMA FINCORP – The another financial organization MAGMA FINCORP, avail loans on the interest rate of 16% p.a. to 20% p.a for 12 months upto the 90-95% on loan amount.

So, these are some banks that provide easy loans for the farmers’ benefits at low-interest rates with easy repayments options easily available by the banks. If you are enquiring for tractor Loan inquiry on the digital platform, then KhetiGaadi expert advice will fit into the schemes to avail different tractor loans on various terms and conditions.

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