New Tractor Loan Fees and Charges: Complete Checklist

Fee and Charges for New Tractor Loan

When securing a Tractor Loan, understanding the associated tractor fees and charges is crucial. These costs include processing fees, documentation charges and potential prepayment penalties. These Tractor Loan charges contribute to the overall expense of your loan, impacting total repayments over time. By comprehending these Tractor Loan fees, you can accurately assess the true cost of your financing.

Applicable Fees and Charges for Tractor Loans?

List of all fees and charges

Type	Interest Rate and Charges
Documentation Charge/ Processing Fee:	Up to 2% of the loan amount + applicable taxes
EMI Dishonour/ Bounce Charges:	As shown in the table below
Loan sanction amount (in INR)	Charges in (in INR)
< ₹ 5 lakh	₹ 500
₹ 5 – ₹ 50 Lakhs	₹ 1000
> ₹ 50 Lakh – ₹ 2 Crore	₹ 1500
> ₹ 2 Crore	₹ 2000
Prepayment/ Foreclosure Charges:	2% of principal outstanding + applicable taxes
Valuation Charges:	As per actuals
Penal Charge/Late Payment Charge (LPC):	2% per month on overdue EMI + applicable taxes
	*LPC revised from 3% to 2% per month on overdue EMI w.e.f. 4th Dec 2023
	*Taxes applicable on LPC w.e.f. 1st Apr 2024
Legal /Recovery /Repo /Parking & other Charges:	As per actuals
RC Non submission Charges:	₹ 1000/-
Duplicate NOC Charges:	First 3 paper copies - free of cost
Duplicate NOC Charges:	₹ 1000/- + applicable taxes
Repayment Swap Charges (per swap):	₹ 500/- + applicable taxes (Applicable only for branch walk-ins)
Document Charges:	Nil for documents like Statement of Account/Repayment Schedule /Foreclosure Letter & Welcome Kit

*Terms & Conditions Apply. All actual charges will be as per Key Fact Statement (KFS) shared by the company.

FAQs & Support

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What is the foreclosure charge on a Tractor Loan?

Foreclosure charges typically amount to 2% of the outstanding principal loan amount plus applicable taxes.

Is there a loan cancellation fee in case of rejection?

No. There is no cancellation fees charged, in case the loan is rejected by L&T Finance

What are the typical fees and charges for a Tractor Loan?

Typical Tractor Loan charges during disbursement include processing fees and documentation charges. These fees contribute to the overall loan cost and are crucial for financial planning.

Is GST applicable on Tractor Loan fees and charges?

Yes, GST is applicable on certain fees, such as processing fees for Tractor Loans. It's included in the calculation to ensure compliance with tax regulations.

Are there any hidden charges in a Tractor Loan?

There is No hidden charges in L&T Finance's Tractor Loan. All charges are mentioned in the website and in the loan agreement.

How is the processing fee for a Tractor Loan calculated?

The processing fee is a percentage of the sanctioned loan amount. L&T Finance charges a processing fee of up to 2% of the loan amount plus applicable taxes GST including documentation charges.

Are there late payment penalties for Tractor Loans?

Yes, there are late payment penalties. It is levied at 2% per month on overdue EMI + applicable taxes. To Avoid paying the penal charges, ensure repayment on time.

How can I avoid extra fees on a Tractor Loan?

To avoid extra fees, ensure timely payments, read the loan agreement thoroughly and discuss all possible charges beforehand.

Are there any additional charges for agricultural Tractor Loans?

Yes, additional charges might include RC non-submission charges, and repo or parking fees, as applicable. The charges are levied depending on the actual costs incurred.

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