Do you know about Tractor Refinance

Tractor refinancing entails securing a loan using your tractor as collateral, allowing you to obtain a new loan to pay off you’re existing one while maintaining consistent monthly payments and interest rates. This program proves advantageous for farmers seeking an additional income stream. For them, a tractor-secured loan is beneficial as it ensures a steady and punctual income, reducing stress.

Factors Influencing the Tractor Refinancing Scheme: If you're considering borrowing against your tractor, it's essential to be informed about several factors outlined here. Understanding these factors will help you decide whether participating in a tractor refinancing program is the right choice for you.

Numerous variables can impact your eligibility for a tractor loan. These factors include your current loan balance, CIBIL rating, proof of land ownership, and access to the tractor's registration certificate (RC).

Existing Loan Amount: The existing loan amount on your tractor determines your eligibility for a loan against it. You can secure up to 90% of your tractor's current market value or up to 10 lakhs. The precise amount depends on the type of tractor and its purchase year.

CIBIL Score: Your CIBIL score reflects your repayment history. A CIBIL score of 650 or higher indicates a strong record of repaying loans, while a score below 650 is considered subpar. Maintaining a high CIBIL score increases your chances of securing a tractor loan.

Tractor RC Availability: Having your tractor's registration certificate (RC) readily available enhances the likelihood of obtaining a refinancing loan. The RC serves as proof of your tractor's authenticity, so it's essential to keep it accessible when applying for a loan.

How to Apply for a Tractor Refinance Loan: Eligibility Check: Farmers seeking a refinancing loan must meet specific eligibility criteria. This includes tractor ownership and providing proof of ownership through the tractor's RC. Additionally, having a current loan with at least 12 EMIs paid is required.

Selecting Lenders: In India, you have various reputable lenders to choose from, including banks and NBFCs. These lenders offer loans with interest rates ranging from 17.50% to 23.50%. Existing customers may receive preferential treatment, streamlining the application process.

Document Submission: The refinancing loan process involves minimal paperwork. You'll need your tractor's RC, bank account statements, the past six months' bank records from your previous loan demonstrating regular EMI payments, KYC documents, and a copy of your PAN card.

Loan Disbursal: Upon timely submission of the necessary documents, the loan amount will be deposited into your bank account within 48 hours. If your current lender fails to provide a No Objection Certificate (NOC), 90% of the refinancing loan amount will be disbursed. The remaining 10% will be reimbursed once the NOC is issued.

It was all about the notion of 'tractor refinancing loan ' and its significance in the life of a farmer. Make sure you fulfil the qualifying requirements before continue with the loan application. Once you've received confirmation, you can apply for a refinancing tractor loan in India from any accessible creditor. We feel that this information on refinancing loans will be useful to you, particularly if you are in a 'bad loan' position. You may reach TractorKarvan at any moment for further information.