New Tractor Loan Fees and Charges: Complete Checklist

Fee and Charges for 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	Details
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 Charges* *A bounce charge is a charge for (i) dishonour of any repayment instrument; (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 Rs.	Charges in Rs.
< ₹ 5 lakh	Up to ₹ 500
₹ 5 – ₹ 50 Lakhs	Up to ₹ 1000
> ₹ 50 Lakh – ₹ 2 Crore	Up to ₹ 1500
> ₹ 2 Crore	Up to ₹ 2000
RC non submission Charge	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

FAQs & Support

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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.

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 is the foreclosure charge on a Tractor Loan?

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

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.

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.

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.

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.

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