Agricultural Equipment Finance
Agriculture in India has a long history. Even today, the industry represents the largest economic sector in India, employing close to half of the total workforce. As the demands of an enormous and growing population continue to push farming output, Indian banks are providing greater and more varied financial assistance to the country’s farmers.
The agreement between tractor manufacturers and banks has offered Indian farmers new opportunities for agricultural finance, while further driving the country’s significant agricultural sector. With tractors representing the unchanging foundation of the farming industry, this equipment is a key focus for banks. The Indian tractor market is among the largest in the world.
To access agricultural equipment finance, farmers first contact a dealer with tractors for sale, or approach a bank branch directly. There is an emerging network of suitable bank branches in rural and semi-urban India. Most leading banks have developed tractor loans with a careful understanding of rural India. The consideration of these different and varied needs has resulted in a fairly straightforward application process, involving reduced documentation and processing time. Farmers can access finance for tractors of different makes and brands, and with some banks it is even possible to apply online.
As with all loans, eligibility is dependent on the borrower’s credit history and their individual requirements. For this type of finance, the applicant must be a salaried individual, and an agriculturalist. Loan amounts also vary, depending on the specific vehicle. Banks fund 90% of the equipment cost, and many times this is extended to 100%.
Farmers are sometimes given lower interest rates, as a further impetus for the agricultural industry. Depending on the details of the loan, flexible payment plans are established, from monthly to quarterly and half-yearly.
The agriculture equipment market is growing steadily. Manual labour is an integral element of rural India, and an ageless system of farming. Tractors play an essential role in the automated agricultural life of the country, and their importance has been recognised by banks. Today’s farmers have an opportunity to apply for tractor finance and take advantage of innovative payment terms, suited to rural requirements.