Used (Pre-owned) Tractor Loan: Second Hand Tractor Loan

Used/Pre-Owned Tractor Loan

If you're planning to purchase a pre-owned tractor, our Used Tractor Loans offer a range of benefits to make your purchase easier. Get financing for second-hand tractors with a 72-month repayment schedule that aligns with your crop cycle with multiple repayment options. Our easy application process and end-to-end digital, fully paperless journey allows you to apply for the loan without hassle. With loan sanction within 24 hrs, disbursal within 48 hours and competitive interest rates, we aim to make borrowing hassle-free. Apply today to secure the tractor you've been looking for.

What is a Used Tractor Loan?

A Used Tractor Loan is designed to help individuals or businesses to purchase pre-owned tractors. This loan offers financing for second-hand tractors, allowing borrowers to acquire the necessary equipment without bearing the full cost upfront. The loan typically features flexible repayment options tailored to the borrower’s income cycle, making it easier to manage payments.

Key Features and Benefits of Pre-Owned Tractor Loans

Tractor Financing: Available financing for 2nd hand tractors.
Loan Tenure: Maximum loan tenure of up to 72 months.
Customized Loans: Tailored loan offerings based on land holdings.
Quick Sanction: Loan sanction within 24 hours.
Flexible Repayment: Repayment options aligned with crop cycles and harvesting patterns.
Hassle-free Disbursement: Loans disbursed within 48 hours.
Transparent Process: No hidden charges involved.
Paperless Journey: Entirely digital and fully paperless loan process.

Eligibility Criteria for Pre Owned Tractor Loan

Type	Criteria
Age requirement	18 years to 65 years
Income Eligibility	Based on size of land holdings and per acre yield

Documents Required for Pre Owned Tractor Loan

Document Type	Required Document & Checks
ID Proof	Aadhaar \| PAN card \| Voter ID \| Driving License \| Passport
Address Proof	Aadhar \| Voter ID \| Driving License \| Passport \| Latest telephone bill (landline) \| Latest electricity bill \| Latest bank account statement
Land Ownership Proof	Agricultural land document
Other Documents	ACH/ECS Mandate

Interest Rate and Charges for Tractor Loan

List of all fees and charges for New Tractor Loan

Charge Type	Details
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 Lakh - ₹ 50 Lakh	₹ 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.

How to apply for a Used Tractor Loan?

Considering a loan on a used tractor can be easy by following these five simple steps. Here's how to ensure second hand tractor finance:

1. Apply Online

Click on the "Apply Now" button in the New Tractor Loan section and fill in the form with your personal details and loan requirement

2. Get Contacted by our representative

Our loan representative will contact you and share available loan offers and collect required documents

3. Eligibility and Document check

Our representative will check your eligibility and verify your documents before processing the loan

4. Own your New Tractor

After approval, your loan amount will be directly disbursed to the dealership for a seamless purchase process

FAQs & Support

View all

What documents are required when applying for a Used Tractor Loan?

When applying for a Used Tractor Loan, you will need to provide ID proof (Aadhaar/PAN card), address proof (Voter ID, Driving License, Passport, or utility bills), and other necessary documents, such as the ACH/ECS mandate.

Who can apply for a Pre-Owned Tractor Loan?

Anyone between the ages of 18 and 65 who is looking to purchase a used tractor can apply for a Pre-Owned Tractor Loan. The applicant must meet the lender's eligibility criteria.

Can I close or repay a Pre-Owned Tractor Loan early?

Yes, you can close or repay a Pre-Owned Tractor Loan early. However, there may be prepayment or foreclosure charges of 2% of the prepaid amount plus applicable taxes.

Do I have to mortgage a property to get a Pre-Owned Tractor Loan?

No, a Pre-Owned Tractor Loan does not require you to mortgage any property. It is typically secured against the tractor being purchased.

What credit score is needed to finance a used Tractor?

While the exact credit score requirement may vary, having a good credit score increases the chances of approval for a Pre-Owned Tractor Loan and securing a favourable interest rate. A stable credit history is recommended.

What is the repayment period of a Pre-Owned Tractor Loan?

The repayment period for a Pre-Owned Tractor Loan can go up to 72 months, providing flexibility in managing your finances and aligning payments with your income cycle.

What is the Down Payment for Used/Pre-Owned Tractor Finance?

The down payment for a Used/Pre-Owned Tractor Finance varies based on the loan amount and the lender’s policies. A certain percentage of the tractor’s value is typically required as a down payment.

What is the interest rate for a Used/Pre-Owned Tractor Loan?

The interest rate for a Used/Pre-Owned Tractor Loan varies based on the lender's policies and the applicant's creditworthiness. It's best to check with L&T Finance directly for the most accurate and current rates.

Is a co-borrower required when applying for a used Tractor Finance?

A co-borrower is generally not required when applying for used Tractor Finance. However, having one can sometimes help you get better loan terms or a higher loan amount.

How do I approach L&T Finance for a Pre-Owned Tractor Loan?

You can approach L&T Finance by visiting our website, navigating to the Agricultural Loans section, and applying online. The process is straightforward, and you can complete the entire application digitally.

Explore all FAQs