Credit policy for tractors and farm equipment

Eligibility

• The borrower or an immediate family member owns or leases at least 2 acres of irrigated land, or 4 acres of rain-fed land.
• Custom hiring (renting the tractor to neighbours) counts as income only with 12 months of evidence.

Instalments follow the harvest

Tractor loans are repaid half-yearly, with instalments due after the kharif and rabi harvests. Set the due dates by district, from the crop calendar, not by the disbursement date. A due date that lands before the harvest is the single most common cause of avoidable tractor delinquency.

Rainfall

Check the district's rainfall against normal for the last three monsoons. If two of three were below 75% of normal, lend only with irrigation evidence. When a monsoon fails during the loan, follow KB-031 before considering repossession.

Tenure and LTV

Up to 85% of the invoice, 60 months maximum. Implements (rotavator, trolley) may be financed with the tractor if bought from the same dealer.