The gamut of banking is as intriguing, interminable and indefinite as the layers of the ocean. There are so many financial precedents occurring and you need to know each one because they entail different mechanisms, meaning and fiscal implications. Loans, interests, rebates and sanctioning of the same constitute a vast segment of banking. In any agrarian economy, taking loans from banks to grow their fodder or channelize agricultural implements is a basic practice. In this regard, you have tractor loans that can be obtained from the banks, albeit a particular rule, eligibility criteria and regulations.
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Eligibility: Considering the fact that different banks entail different eligibility criterion for these loans, you need to assess the uniform or partial identity if not similar precedents and remember that agrarian term loans are primarily sanctioned for buying new tractors, related implements and other accessories. There is no blatant standardization that sets the tone here.
The minimum age of the applicant must be at least 21 years and the maximum age has to be within 75 as on the funding date.
Any group of individuals or individual, organization, corporation or institution can be eligible for this kind of finance. However, they need to affirm that they entail a regular, sufficient and steady income. It can either be from their commercial engagements, custom renting or hiring cash inflows from the concerned tractor deemed to be brought. Even, the accessories are taken into account in this regard.
Many banks state the minimum plot of land required to be held by the borrowing farmer to 3 acres. There are some who put this figure to 2.
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Benefits: Like any other fiscal object, understanding the aspects and benefits is an imperative.
While you want to upgrade or enhance your farming tool or vehicle for more income, paucity of funds can be a major hiccup. With tractor loans, you can have optimum funding at remarkable interest rates.
As regards the loan amount, you can get nearly 90 per cent finance on the covered vehicle through the concerned loan. Maximizing funding scopes are much easy in this scheme.
These loans thrive on the tractor brand. This is a key aspect. There are scores of people who want to purchase a tractor for yielding better productivity of crops. You need to remember that if the chosen vehicle is manufactured by a reputed and esteemed company, you are fully eligible for the loan. No bank would love to shoot in the dark banking on the loading capacity of the gun. It needs a branding, and so do you.
The repayment aspect is another standout benefit. You can repay the loans in equal monthly installments within a span of five years. That span would include a grace period for one month. You’ll find that this regulation is in perfect harmony with the regular or objective fund flow in the borrower’s hands.
You can give post-dated cheques carrying the EMI.
Features: Considering the fact that tractor loans constitute a very quick processing, you can also find a hassle free and simple documentation. The banks understand how and why mandatory factors have led you to this loan.
With no foreclosure charges and flexible options in payment, you can get special rates of interest if you have many sources of income.
You can obtain finance in the very first year and a synthesized loan taking the first three years, which includes the premium of the motor insurance.
There are banks which implement the credit shield mechanism. It implies that they will cover the full insurance of permanent disability or accidental death of the concerned customer.
The shield also includes the amount in proportion to the remaining loan amount.
Collateral security for tractor loans implies mortgage of tangible assets. The banks value it equivalently with the full loan amount.
As a basis of fundamental security, there is a hypothecation of your vehicle along with its accessories.