5 THINGS YOU SHOULD KNOW BEFORE APPLYING FOR TRACTOR LOAN

1. 5 THINGS YOU SHOULD KNOW BEFORE APPLYING FOR TRACTOR LOAN In a country where most people still opt for farming as their full-time occupation, agriculture plays a vital role in boosting the nation's economy and GDP. Today, farming has become even more interesting with the advanced tools and technology available in the market. With modern methods and machinery, farmers can efficiently complete their daily chores in a few hours rather than working for an entire day. Yet, not everyone has access to these modern methods due to the expensive costs of machinery and equipment. There are easy financing services for the farmers' agricultural needs, especially to buy tractor on loan at the best rates. Today we are going to share five essential things that you should know before applying for the tractor loan: What is the Interest Rate? Knowing the interest rate charged by the lender is one of the essential things farmers should ensure while applying for a Tractor loan. Various banks offer loan services to buy a new or used tractor with their predetermined interest rates. Yet, the interest rate could start from 8.70% p.a. The processing fees for the loan can be as low as 0% and can go up to around 4% of the loan amount and borrowers or farmers can apply for a short term or long-term loan based on their requirements. Hence, before applying for the loan, make sure you get the precise figures of the interest rate of the loan you wish to apply. What is the Tenure of Loan? Knowing your loan tenure will help you prepare the amount on time. The term me vary based on the type of loan your wish to apply for; for instance, the maximum tenure available for tractor loans is seven years, and there might be some lenders who may offer a maximum repayment term of 5 years. Therefore, you must have the clarity of the tenure in order to pay back the loan on time without fail. If a lender proposes five years and you need more time, then you may find some other lender. Is there any additional charges? While applying for Tractor loan, make sure you have the clarity on whether there would be any other additional charges in the passed loan or not. There are possibilities that the lender might have some additional costs like processing fees, documentation charges, prepayment fees, etc., which could increase your loan amount. So, go for a loan with a competitive interest rate and consider the additional charges levied. Terms for collaterals Here the term "collateral" means any asset like a car or home or land that the borrower proposes as a way to pass the requirement of a loan. This helps the lender extend the loan without any qualms since it protects the lender's financial stake in case the borrower fails to repay the total amount of the loan. Therefore, providing collateral or not completely depends on the lender you approach for the loan. If you borrow money with collateral, make sure you read the terms thoroughly before finalising it. This will keep you away from the troubles in the future.

2. Is there any margin? Each lender has a specific margin price while lending a loan; thus, the borrower has to make arrangements for the remaining funds. Make sure you check the margin quoted by the lender (if any) while applying for the loan while applying for a loan. You will surely find the right lender to buy a new tractor loan if you consider the points mentioned above while applying for a tractor loan. Though numerous banks offer agricultural loans to the farmers, you can also check Digitrac tractorloan online through its website digitrac.in Farmers' once stop destination for all farming needs. Or you can simply install the Digitrac mobile application and connect with the customer support team in just one missed call.