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Sinduja Shankar

Expert

Published on: Sep 22, 2026

TMB Tractor Loan for Farmers

The Tamilnad Mercantile Bank (TMB) Limited has launched the Tractor Loan Scheme to the farmers for agricultural purposes. Under the Tractor Loan Scheme, the farmers of the rural and semi-urban community can avail the loan for buying a tractor or any farming equipment. This scheme enables hassle-free credit to the farmers as they can avail loan up to Rs. 6 Lakhs. In this article, we look at the TMB Tractor Loan Scheme in detail.

Objective of the Scheme

The primary objective of the TMB Tractor Loan Scheme is to satisfy the requirements of the farmers in the purchase of Tractor and other implements under the priority sector of Agriculture and allied activities.

Eligibility Criteria

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

Documents Required

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

  • Identity Proof: Aadhar Card, Driving License, PAN Card, Voter Identity Card, etc.
  • Address Proof: Aadhar Card, Valid Passport, Property tax bill, Utility bill, etc.
  • Quotation of tractor issued by the dealer to customer
  • Proof of landholding [Farmer must have a minimum of 2 acres of irrigatable Land or 4 acres of dry land (fully cultivable) subject to economic viability]

Note: All the above Terms and Conditions are subject to change, and sanctioning of the loans is at the discretion of the Bank.

Goods and Service Tax (GST) on All Service Charges extra wherever applicable.

Quantum of Loan

Under this scheme, a maximum amount of loan can be obtained would be up to Rs. 6 Lakhs.

Margin Money

A minimum of 15% of the loan amount to be paid by the applicant.

Primary Security

Hypothecation of Tractor and other farming implements.

Collateral Security

  • In case of agricultural land, collateral security must be obtained for not less than 100% of the limit.
  • In case of other properties, collateral security must be obtained for not less than 50% of the limit.
  • Collateral Society would be obtained in the form of fixed deposits, National Savings Certificate, LIC Policy or such other acceptable security.

Repayment Period

  • The period of repayment is based on the cropping pattern or harvesting season and income generations up to a maximum of 9 years.
  • One can repay the loan in monthly, quarterly, half-yearly and yearly basis depending on the borrower.

Processing Fees

The processing fee for the term loan will be 1.00% of the limit without any maximum cap and additionally with the applicable tax.

Rate of Interest

  • For the MCLR based interest rates, the applicants can contact the nearest TMB branch.
  • The current Base Rate for Lending (BR) is 9.75% per annum.

Penal Interest

The penal interest will be charged 2.00% per annum for any irregularity or default in the repayment process and the above rate of interest on the balance outstanding exceeding Rs. 25,000.

Application Procedure

To apply for the Tractor Loan Scheme with TMB online, the applicant can apply either by approaching the nearest branch or by filling up a form on its

official website. The applicant will have to fill up the form with the relevant details with documents. The bank officials will contact the applicant to take the process further.
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Frequently Asked Questions

Common questions about TMB Tractor Loan for Farmers.

Under the TMB Tractor Loan Scheme, farmers can avail a maximum loan amount of up to Rs. 6 Lakhs for purchasing a tractor or other farming equipment.
The eligibility criteria for the TMB Tractor Loan Scheme include resident individuals, joint borrowers, sole proprietors, partnership firms, trusts, associations, clubs, societies, private or limited companies, and limited liability partnerships. Additionally, the applicant must have a minimum of 2 acres of irrigatable land or 4 acres of dry land for economic viability.
The documents required include identity proof (Aadhar Card, Driving License, PAN Card, Voter ID, etc.), address proof (Aadhar Card, Passport, property tax bill, utility bill, etc.), quotation of the tractor from the dealer, and proof of land holding.
The applicant must pay a minimum of 15% of the loan amount as margin money while applying for the TMB Tractor Loan Scheme.
The primary security required for the TMB Tractor Loan Scheme is the hypothecation of the tractor and other farming implements purchased with the loan amount.
For agricultural land, collateral security must be obtained for not less than 100% of the loan limit. For other properties, collateral security must be obtained for not less than 50% of the loan limit. Collateral security can be in the form of fixed deposits, National Savings Certificates, LIC policies, or other acceptable securities.
The repayment period for the TMB Tractor Loan Scheme is based on the cropping pattern, harvesting season, and income generation, with a maximum tenure of 9 years. The loan can be repaid on a monthly, quarterly, half-yearly, or yearly basis, depending on the borrower's preference.
The processing fee for the TMB Tractor Loan Scheme is 1.00% of the loan limit without any maximum cap, plus applicable taxes.
Applicants can apply for the TMB Tractor Loan Scheme either by visiting the nearest TMB branch or by filling out an online application form on the bank's official website.
Yes, a penal interest of 2.00% per annum will be charged for any irregularity or default in the repayment process, and the same rate of interest will be applicable on the outstanding balance exceeding Rs. 25,000.