Apply for Farmer Loan Get Farm Equipment Up To ₹50* Lakhs

A farmer loan is a financial solution to help farmers meet their agricultural expenses. It provides the necessary funds to buy seeds, fertilisers, equipment, and other farming essentials. With flexible repayment options and lower interest rates, these loans ensure farmers can manage their cash flow effectively without disrupting their farming operations. The farmer loan interest rate depends on the loan amount, repayment tenure, and the borrower's financial profile. Many financial institutions offer government-backed agriculture loan for farmers, ensuring better accessibility for small and large-scale farmers alike. These loans can also be used to purchase farm machinery loans and invest in infrastructure improvements like irrigation systems. For those looking for a quick and hassle-free process, an online farmer loan application makes it easy to access funds without visiting a bank.

New Tractor Loan
New Tractor + Implements Combo
New Tractor + Harvester Combo

Flexible Loan Amounts

Farmers can avail of loans ranging from ₹10,000 to ₹50 lakhs based on their needs.

Competitive Interest Rates

Many lenders offer a lower farmer loan interest rate, making repayments affordable.

Government Subsidies

Special subsidies and schemes are available to reduce the interest burden.

Multiple Loan Uses

Can be used for farm loan for equipment, irrigation, storage, and purchasing raw materials.

Collateral-Free Options

Some financial institutions provide loans without collateral, depending on eligibility.

Season-Based Repayment

Farmers can align their repayments with harvest cycles.

Quick Disbursal

Many lenders approve and disburse loans within a few days.

Easy Online Application

Start to finish, our Loan has a transparent process

Farmer Loan EMI Calculator

Results generated by the calculator(s) are indicative in nature.

Preferred loan amount

₹

₹1,00,000

₹15,00,000

Flat rate

10%

19%

Loan tenure (months)

12 months

72 months

Estimated EMI

per month

₹ 36,690
Interest payable
₹52,41, 690

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Tractor Loan Eligibility & Required Documents

Eligibility Criteria for Farmer Loan

Age Requirement:

The applicant must be between 18 to 65 years old.

Farming Experience:

Some lenders require a minimum of 2 years of active farming.

Land Ownership:

Applicants should own or lease agricultural land.

Credit Score:

A good credit history can help secure better loan terms.

Income Stability:

Farmers should demonstrate a stable income source from agricultural or allied activities.

Loan Purpose:

The loan should be used for legitimate farming-related expenses such as purchasing equipment, seeds, or land improvements.

Documents Required for Farmer Loan Application

Identity Proof:

Aadhaar Card, Voter ID, PAN Card, or Passport.

Address Proof:

Utility bill, Ration Card, or Land Ownership Certificate.

Land Documents:

Proof of land ownership or lease agreement.

Income Proof:

Bank statements, sales receipts, or tax returns.

Photographs:

Passport-sized photos of the applicant.

Loan Application Form:

A duly filled form with accurate details.

Farmer Loan Fees & Charges

List of all fees and charges for Farmer Loan

Processing Fee
New Tractor & Implement - Up to 1% of the loan amount or Rs. 30,000 whichever is lower + applicable taxes
Kisan Suvidha - Up to 2% of the additional loan amount or Rs. 10,000 whichever is lower + applicable taxes
Used/Preowned Tractor & Refinance - Up to 2% of the loan amount or Rs. 10,000 whichever is lower + applicable taxes
Trade advance – Up to 2% of sanction amount + applicable taxes
Prepayment/ Foreclosure Charges
Up to 2% of principal outstanding + applicable taxes
Asset valuation and verification Fee
Up to Rs.1,200/- + applicable taxes
Penal Charge/Late Payment Charge (LPC):
Up to 2% per month (p.m.) on overdue EMI + applicable taxes
Trade advance – Up to 2% per month (p.m.) on overdue amount + applicable taxes
EMI Dishonour/Bounce Charge*
*A bounce charge is a charge for
(i) dishonour of any repayment instrument; or
(ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate
As shown in the table below

Loan sanction amount (in INR)

Charges in (in INR)

< 5 lacs

Up to ₹ 500

5 – 50 Lacs

Up to ₹ 1000

>50 Lacs – 2 Cr

Up to ₹ 1500

>2 Cr

Up to ₹ 2000

RC Non submission Charges:
Up to Rs.1000/- per month post 120 days + applicable taxes
Document retrieval / Duplicate NOC charges
Duplicate NOC: Up to Rs. 1000/- + applicable taxes (charge is applicable post 3 free copies)
Repayment instrument swap Fee (per swap)
Up to Rs. 500/- + applicable taxes (Applicable only for branch walk-ins)
Part-prepayment charges
Up to 2% of part prepayment amount + applicable taxes
Field collection service charges
Up to Rs.500/- per collection + applicable taxes
Legal fees and charges
As per actuals or Up to Rs. 30,000/- whichever is lower + applicable taxes
Recovery charges
As per actuals or Up to Rs. 1,00,000/- whichever is lower + applicable taxes
Auction fees
Up to 1% of auction sale amount+ applicable taxes

Seamless Loans, Simplified Experience

Download the Planet app for a one stop loan solution with effortless management at your fingertips. Learn More

How to Apply for Tractor Loan?

Apply for New Tractor Loan with these steps

Step 1:
Check eligibility criteria on the lender’s website.
Step 2:
Gather required documents, including identity proof, land records, and income proof.
Step 3:
Fill out the farmer loan application form online or offline.
Step 4:
Submit the application and await verification.
Step 5:
Once approved, the loan amount is disbursed into your bank account.

FAQs & Support

View all

What is the loan amount range?

Loan amounts typically range from ₹10,000 to ₹50 lakhs, depending on the farmer’s profile and funding requirements.

What is the interest rate for a Farmer Loan?

Interest rates for farmer loans usually range from 7% to 14% per annum. Lenders determine the exact rate based on loan amount, tenure, creditworthiness, and the RBI’s regulatory framework.

How can I apply for a Farmer Loan online and offline?

Farmers can submit applications via the lender’s official website or visit the nearest branch office with the required documents for assistance when applying for an online farmer loan or offline process.

What are the repayment tenure options for Farmer Loans?

Repayment periods vary but usually range from 12 months to 72 months, often aligned with crop cycles for easier servicing.

Can I use the loan for agricultural equipment?

Agriculture loans for farmers help finance tractors, harvesters, irrigation pumps, fertilizers, seeds, and other essential agri-inputs.

Can I get a Farmer Loan without collateral?

Yes, many financial institutions provide collateral-free loans to small and marginal farmers, subject to eligibility conditions such as borrowing limits and credit history.

What is the minimum and maximum loan amount available for farmers?

The loan amount varies by lender, typically ranging from ₹10,000 to ₹50 lakhs based on eligibility and requirements.

Is there a penalty for early closure?

Some lenders may levy a prepayment charge ranging from 1% to 3% of the outstanding principal. However, policies vary, and some loans offer no penalty to encourage faster repayment.

What documents do I need to submit for a Farmer Loan application?

Submit identity proof, address proof, land ownership or lease documents, income proof, recent photographs, and a completed loan application form required for most agriculture loans for farmers.

Can I use a Farmer Loan for purchasing agricultural equipment?

Yes, a farm loan for equipment can be used for tractors, irrigation systems, and other machinery.

Explore all FAQs

Maximising Your Farmer Loan Approval: Dos and Don'ts

List of all Dos and Don’ts

Farmer Loan

Having a good track record, LTF provided me with a pre-approved loan which was a huge help to my business. The FLS assisted me personally; he answered all queries. My loan was disbursed within 24 hours. I will recommend LTF to my friends & family and will prefer L&T Finance for future loan requirements.

Akshay Kumar Jha

Location here

Farmer Loan

Sanjay

Location here

Farmer Loan

My friend recommended LTF since they provide tractor loans at a lower interest rate than others, the loan process is simple, no physical documentation is required, payment was deposited the same day and I received the tractor within a week. My agricultural business has really improved thanks to the LTF.

Narayana G

Telangana

Farmer Loan

L&T Finance has supported me as a farmer since 2014, helping me finance two tractors and essential equipment. With flexible, crop-based repayments and easy EMI tracking on the PLANET App, my life has been easy. L&T Finance truly empowers us to grow better and manage finances seamlessly.

Satish Hisar

Beri, Haryana

Farmer Loan

As a third-generation farmer, owning a tractor with L&T Finance's support has transformed our work. The fully digital process made it easy, with swift disbursement and flexible repayment options like EMI Protect. Now, our costs are lower, and farming is efficient. Truly, L&T Finance supports farmer prosperity.

Hardeep Soora

Hisar, Haryana

Farmer Loan

When I decided to buy a tractor, I spoke to the L&T Finance official. After all the documentation, I got approval of my loan with 2-3 days. I didn’t have to go anywhere and yet my loan got sanctioned.

Bherulal Chaudhary

Ratlam, MP

Farmer Loan

The L&T Finance officer came home and did all the application formalities online and instantly got approval for the loan. Our EMI is in accordance with our harvesting cycle. They gave us the best interest rate and fulfilled our financing requirements.

Mr. Balu Hari Pawar

Maharashtra