Different Types of Tractor Finance and Their Advantages
Tractor is the most prized possessions for a farmer, and farmers need this heavy equipment for their agriculture business. But the cost of a tractor is very high and all the farmers cannot buy it easily. In that case, they can go for tractor finance, and there are many lenders available who can provide this finance at a minimum rate of interest.
Apart from that, some finance companies can also offer payment flexibility, and you can also go for a seasonal payment structure. In this case, you can make a part payment during the loan tenure and reduce the EMI amount. Even some finance companies can also offer you equity in equipment, 100% finance, low-interest rate, zero processing fees, tailor-made monthly installments and instant loan approval facility from their end.
Tractor Finance Provided by The Reputed Lenders:
- You can apply for the tractor finance online, over the phone. You just need to fill some necessary details such as your annual income, identity, and residential proof details and banking details online. The finance company will call you back and collect your papers from your doorstep. Afterward, you can track your loan application online and the loan amount will be credited to your bank account within seven to fifteen days.
- You do not need to upload so many documents because today, several companies provide you the tractor finance at low doc finance. Even you can also get the instant loan approval within a span of few hours and the amount (price of the tractor + GST) will be credited to your bank account.
- If you have experienced poor harvest in the last few years then also you can apply for the tractor finance. Even people can also get the loan with a low credit score.
- You will get the flexible payment options and the finance company will sketch your EMI according to your needs and preferences.
Different Types Of Tractor Finances Available In The Market:
- Lease contract: Lease contract finance is extremely cost effective and you do not need to use your working capital to buy a new tractor. The company will provide 100% finance and they will make a lease contract with the farmer. You need to repay their amount with interest within a stipulated timeframe and after the lease period, the finance company will transfer the ownership of the tractor to your name. You can negotiate the price of the tractor with the manufacturer and after settling the final deal, you can apply for the finance on the lease contract.
- Chattel mortgage: If you want to get the full ownership of the tractor at the time of purchase then you can go for the chattel mortgage loans. In such a case, you need to mortgage some of your assets as a collateral deposit, and the finance company will provide you 100% finance including GST charges and initial payment. But if you do not want to take the full finance option then you can also include residual term at the end of the loan agreement. At the end of the agreement, the finance company will release your mortgage assets. You can avail this loan at a lowest interest rate and you do not need to use your working capital for buying a new tractor.
- Commercial hire purchase: With the commercial hire purchase, you need to pay the rent for the tractor for stipulated timeframe. The company will purchase the tractor on your behalf and give you the tractor on rental basis. You need to pay a monthly rent along with the EMI. At the end of the lease agreement, the company will transfer the ownership of the tractor to you.
Tax deductible is applicable for all of these tractor finance options and for more details, you can contact the financer.