Sbi Tractor Loan Scheme

State Bank of India (SBI) has launched the Tractor Loan Scheme to farmers for farming purposes. Under this scheme, the farmers of the semi-urban and rural community can avail the loan for buying tractors and any farming equipment. This scheme facilitates hassle-free credit to the farmers. In this article, we look at the Sbi Tractor Loan Scheme in detail.

Features and Benefits of the Scheme

The below listed are some of the features and benefits of the Tractor Loan Scheme:

The loan amount given by the bank will cover the cost of tractor, implements, accessories, insurance and registration expenses.
There is no upper ceiling in the quantum of the loan amount.
The processing will take 7 days from the date of submission of all required documents.
Under this scheme, the facility of monthly/quarterly and yearly repayment.
It also provides the concession of interest at 1% per annum by repaying promptly.

Eligibility Criteria

To avail the Tractor Loan from SBI, the farmer has to satisfy the below-listed criteria:

Resident Individual/Joint
Sole Proprietary Concerns
Partnership Firms
Trust/Association/Club/Society
Private or Limited Company
Limited Liability Partnership and all legal entity

Documents Required

The below listed are the documents/records need to be furnished at the time of applying for the loan:

Pre-sanction

Application form (Duly Filled)
3 latest passport size photographs
Documentary proof of landholding
Quotation of tractor issued by dealer to customer
Title search record from the panel advocate

Pre-disbursement

Executed loan documents (duly signed)
Original title deeds of property/land for mortgage
Cheques of Post Dated

Post disbursement

Registration Certificate (RC) book with hypothecation charge
Original invoice/bill that is issued by the dealer to the customer
Comprehensive insurance copy
Proof of landholding [Farmer must hold a minimum of 2 acres of irrigatable Land or 4 acres of dry land subject to economic viability]

Collateral Security

Registered or equitable mortgage of land for value not less than 100% of the loan amount

Margin Amount

Minimum 15% of the loan amount (includes the cost of tractor, accessories, implements, insurance and registration expenses) to be paid by the applicant.

Rate of Interest

For the MCLR based interest rates, the farmer applicants can contact the nearest SBI branch.
The current interest rate is 11.95% per annum.

Repayment Period

One can repay the loan amount in monthly, quarterly, half-yearly and yearly basis depending upon the borrower.

Processing Fees

Type	Charges Applicable
Prepayment	NIL
Part payment	NIL
Processing fee	0.5%
Duplicate No due certificate	NIL
Stamp duty	As per the bank norms
Late payment penalty	1% per annum on unpaid instalments
A penalty will be filed if failed to register the vehicle within one month from the date of delivery	2% for the period of default
Failed SI (per SI)	Rs. 253/-
Failed EMI (Per EMI)	Rs. 562/-

Application Procedure

To apply for the new Tractor Loan Scheme with SBI bank, the farmer applicant can apply either by visiting the nearest branch or by filling up a loan form on its official website. The applicant has to fill up the form with the appropriate details with the relevant documents. The bank officials will intimate the applicant for further processing.

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Frequently Asked Questions

Common questions about SBI Tractor Loan Scheme for Farmers.

The SBI Tractor Loan Scheme is a credit facility offered by the State Bank of India to farmers for purchasing tractors and farming equipment. It provides hassle-free financing options to rural and semi-urban communities engaged in agricultural activities.

Resident individuals, joint sole proprietary concerns, partnership firms, trusts, associations, clubs, societies, private or limited companies, limited liability partnerships, and all legal entities engaged in farming activities are eligible to apply for the SBI Tractor Loan Scheme.

The scheme covers the cost of the tractor, implements, accessories, insurance, and registration expenses. There is no upper ceiling on the loan amount, and borrowers can avail of a 1% interest concession for prompt repayment. Repayment options include monthly, quarterly, and yearly installments.

Applicants need to submit a pre-sanction application form, proof of landholding, tractor quotation from the dealer, title search record, executed loan documents, original title deeds for mortgage, post-dated cheques, registration certificate, original invoice, insurance copy, and proof of landholding (minimum 2 acres of irrigated land or 4 acres of dry land).

Applicants must pay a minimum of 15% of the loan amount, which includes the cost of the tractor, accessories, implements, insurance, and registration expenses.

The current interest rate for the SBI Tractor Loan Scheme is 11.95% per annum based on the MCLR (Marginal Cost of Funds Based Lending Rate). However, applicants should contact the nearest SBI branch for the latest interest rates.

Borrowers can choose to repay the loan amount on a monthly, quarterly, half-yearly, or yearly basis, depending on their preference and financial situation.

The processing time for the SBI Tractor Loan Scheme is 7 days from the date of submission of all required documents.

Applicants must provide registered or equitable mortgage of land with a value not less than 100% of the loan amount as collateral security.

Yes, there are various charges and penalties associated with the SBI Tractor Loan Scheme, such as processing fees (0.5%), late payment penalty (1% per annum on unpaid installments), penalty for failure to register the vehicle within one month of delivery (2% for the period of default), and charges for failed SI or EMI transactions.