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SBI Tractor Loan Yojana 2020- A Detailed Guide with Top Features

Updated on June 11, 2024 , 4365 views

Farmers are the providers of all the food needs in our country. Their contribution to the country helps in improving the environment along with an increase in economic profits. The government of India has taken efforts to help the farmers meet their needs and that of the population in the country.

SBI Tractor Loan

Tractor loans are one of the best options for farmers. It provides aid for buying new tractors and other tools. Farmers can apply individually or even as a group and pay back the loan in the form of EMI’s.

The State Bank of India’s (SBI) tractor loan Facility offers both Collateral-free and collateral security loans. You can avail hassle-free approvals and get complete financing for your loan. One of the major advantages of opting for tractor loan with SBI is the fact that there are two loan schemes solely available for women borrowers.

The SBI tractor loan schemes are featured below:

1. Stree Shakti Tractor Loan (Mortgage)

The Stree Shakti Tractor Loan- Mortgage is a scheme for women. It offers loans without any mortgage fees.

Features

1. Mortgage

The SBI Stree Shakti Tractor loan is mortgage free.

2. Loan Sanction

With this loan scheme, you can get your tractor loan sanction within 3 days.

3. Repayment Facility

SBI Stree Shakti loan scheme allows a monthly repayment facility so that you can keep up with your budget.

4. Collateral

There is no requirement of collateral security for this loan.

5. Repayment Period

The period for repayment of the loan under this scheme is 36 months with the 1-month moratorium.

Eligibility

1. Women

This loan can only be availed by a woman. Both the borrower and the co-borrower have to be a woman to be able to avail the loan.

2. Land

You should have a minimum of 2 acres of agricultural Land if you are the borrower to avail the loan.

3. Annual Income

Minimum annual Income to get this loan is Rs. 1,50,000.

Interest Rate and Other Charges

The processing charges and fees for the loan is mentioned below:

Description of charges Charges Applicable
Interest Rate 11.20% p.a.
Pre-payment NIL
Processing fee 1.25%
Part payment NIL
Duplicate No due certificate NIL
Late payment penalty 1% p.a on unpaid instalments
Failed SI (per SI) Rs. 253
Failed EMI (per EMI) Rs. 562

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2. Stree Shakti Tractor Loan- Liquid Collateral

The Stree Shakti Tractor Loan- Liquid Collateral is a tractor loan for women against the pledge of gold ornaments, time deposit with banks.

Features

1. Collateral Security

The loan comes with collateral security. You can deposit gold ornaments, time deposit with a bank, NSCs to the extent of 30% of the loan amount.

2. Margin

The loan comes with a 10% margin.

3. Repayment period

The repayment period for this loan is 48 months with a 1-month moratorium.

4. Loan Sanction

With this loan scheme, you can get your tractor loan sanction within 3 days.

Interest Rate and Other Charges

The interest rate along with other charges for Stree Shakti Loan- Liquid Collateral is mentioned below:

Description of charges Charges Applicable
Interest Rate 10.95% p.a.
Pre-payment NIL
Processing fee 1.25%
Part payment NIL
Duplicate No due certificate NIL
Late payment penalty 1% p.a on unpaid instalments
Stamp Duty As applicable
Failed SI (per SI) Rs. 253
Failed EMI (per EMI) Rs. 562

Eligibility

1. Women

This SBI Tractor Loan Yojana can only be availed by a woman. Both the borrower and the co-borrower have to be a woman to be able to avail the loan.

2. Land

You should have a minimum of 2 acres of agricultural land if you are the borrower to avail the loan.

3. Annual Income

Minimum annual income to get this loan is Rs. 1,50,000 from all sources.

3. New Tractor Loan Scheme

The New Tractor Loan scheme is your answer to your requirement of a new tractor. The details are mentioned below:

Features

1. Coverage

The amount of loan under SBI Tractor Loan will cover the cost of tractor, equipment, insurance and registration and accessories.

2. Quantum Ceiling

There is no upper ceiling of the quantum of loan amount under this scheme.

3. Processing

The processing for the loan is quick and will be made available for 7 days from the date of submission of all documents required.

4. Repayments

With this loan scheme, you can repay on a monthly, quarterly and yearly Basis.

5. Collateral Security

The collateral security for this loan scheme is a registered/equitable mortgage of loan for value not less than 100% of the loan amount.

6. Margin

The margin for the SBI Tractor Loan scheme is 15% of the cost of a tractor, registration expenses. Insurance, accessories and more.

7. Repayment Period

You can repay your loan within 60 months of taking the loan. You can also avail a 1-month moratorium.

Eligibility Criteria

The eligibility criteria for the New Tractor Loan Scheme is mentioned below:

Details Description
Pre-Payment NIL
Processing Fees 0.5%
Part payment NIL
Duplicate No due certificate NIL
Late payment penalty 1% p.a on unpaid instalments
Stamp Duty As applicable
Penalty for failure to get the vehicle registered within one month from the date of delivery 2% for the period of Default
Failed SI (per SI) Rs. 253
Failed EMI (per EMI) Rs. 562

4. SBI Tatkal Tractor Loan

SBI Tatkal tractor loan is a mortgage-free tractor loan. Anyone can access this loan.

Features

1. Accidental Insurance

With Tatkal tractor loan you can avail free accidental insurance cover of Rs. 4 lakhs.

2. Margin

The margin minimum of 25% of the cost of tractor including insurance and registration charges. - Margin- 25%: Interest Rate (%p.a.)- 11.20

  • Margin- 35%: Effective Interest Rate (%p.a.)- 10.95
  • Margin- 50%: Effective Interest Rate (%p.a.)- 10.55

3. Repayment Period

The repayment period for the loan is 48 months when the instalments are fixed on net loan. The repayment period changes to 60 months when instalments are fixed on the basis of the total loan.

Eligibility Criteria

1. Farmers

This SBI Tractor Loan is available to all farmers including individual/joint borrowers who are also owner or cultivators of the land.

2. Land

A minimum of 2 acres of agricultural land has to be in the name of the borrower.

Processing Charges and Fees

The processing charges and fees for Tatkal Tractor Loan are mentioned below:

Details Description
Pre-Payment NIL
Processing Fees NIL
Part payment NIL
Duplicate No due certificate NIL
Late payment penalty 1% p.a on unpaid instalments
Failed SI (per SI) Rs. 253
Failed EMI (per EMI) Rs. 562

Documents Required

The following documents are required based on sanction and disbursement.

1. Pre-Sanction Documents

  • Application form
  • Three Passport size photographs
  • Address Proof (Voter ID card, PAN Card, Passport, aadhaar card
  • Identity Proof (Voter ID Card, PAN Card, Passport, Aadhaar Card
  • Documentary Proof of Lan
  • Income Proof (Certificate from Revenue Authority)
  • Tractor Quotation issued by the dealer

2. Pre-Disbursement Documents

  • Duly executed loan documents
  • 6 Post Dated Cheques

3. Post-Disbursement Documents

  • RC Book with Hypothecation charge in favour of SBI
  • Original invoice/bill issued by the dealer to the customer
  • Comprehensive Insurance copy

SBI Customer Care

You can contact the bank on the toll-free numbers mentioned below:

  • 1800 11 2211
  • 1800 425 3800
  • 080-26599990

Alternatively, you can also SMS UNHAPPY to 8008 20 20 20 if you are unhappy or have any grievance with their services.

Conclusion

The SBI Tractor Loan is one of the most popular loan schemes among farmers. Read all the loan-related documents carefully before applying. Make sure to carry all the necessary documents before applying.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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