What is a Farm Equipment Loan? How to Get It
The right farm equipment helps maximize your agricultural produce and reduce labor costs. However, purchasing new or used farm equipment like tractors can be extremely expensive for farmers.
Most farmers need a financing plan to reduce the purchasing burden of agricultural machinery without straining their current budget or cash flow. You can take farm equipment loans for a short or long term, varying between 12 and 60 months to support your purchase.
As a farmer, waiting for your bank to approve your farm equipment loan can mean the difference between a bumper harvest and a loss. But, at SK Finance we help you get new and used tractor loans faster through our seamless application to disbursement process.
Let’s discuss why you need a farm equipment loan and how to get it.
Why Do You Need a Farm Equipment Loan?
Farm equipment loans have been instrumental in helping farmers get better crop yields with the right equipment for their farms, including tractors, harvesters, irrigators, biogas digesters, greenhouses, seed-sowing machines, hay balers, and plows.
Here are some reasons why you may need a farm equipment loan:
Manage Cash Flow for Your Farming Needs
The agriculture industry contributes 17% of the total GDP of the Indian economy, providing livelihood for 55% of India's population.
However, farming is a seasonal industry where you may need more cash to overcome extreme weather conditions, prepare the land for plantation, purchase seeds at fluctuating market prices, and establish storage facilities for harvested crops.
A farm equipment loan can help spread out the cost of necessary farm equipment over time, which can help you preserve cash for other day-to-day farming activities and needs.
Buy New or Used Agricultural Machinery
A farm equipment loan can help you purchase new or used agricultural machinery like tractors, plows, and harvesters. With the right equipment, you can take your farming produce and income to the next level by improving efficiency.
How to Choose a Financer for Your Farm Equipment Loan
Choose farm equipment loans and financing options that best suit your needs. Here are a few indicators to consider before making this critical decision:
● Understand the financer's background: The motivation behind the establishment of an institution could help you decide whether it is the best finance for you. For example, we at SK Finance offer tractor loans to farmers at low interest rates to facilitate agriculture. We are motivated by the growth of small-scale farmers; not by profits.
● Read customer reviews: Institutions build a reputation over time. Check through customer stories and reviews to determine whether a tractor loan provider aligns with your goals. For instance, we at SK Finance have connected with thousands of farmers to provide tractor loans to support their agricultural businesses.
● Understand loan terms and conditions: A reliable financer will clearly define all terms and conditions, including charges, interest rates, and loan repayment terms for tractor loans and other farm equipment loans. Here is what our schedule of charges looks like for tractor loans
How to Apply for a Farm Equipment Loan with SK Finance
Follow the steps below to apply for a farm equipment or tractor loan with us:
1. You must first assess your requirements to apply for a farm equipment loan. Analyze how much funds you need and your capacity to pay EMIs. It will help you decide on the best loan options.
2. Decide whether you want to buy a new tractor, a used tractor, or any other agricultural machinery.
3. Gather necessary documents such as ID proof, address proof, ownership documents, and income proof.
4. Apply for a loan at a financial institution or NBFC. We at SK Finance offer hassle-free loans to buy a new/used tractor through minimal documentation. We assess your eligibility based on your income details and documents and offer flexible repayment options based on your financial needs. You can easily apply for a tractor loan here.
We have also been recognized as the fastest-growing tractor financing company in India.
Finance Your Farm Equipment Needs with SK Finance
Farm equipment loans help you compete effectively with big agricultural corporations and enjoy great returns from your farm produce. We offer attractive loan interest rates and repayment schedules for tractor loans.
Visit our nearest branch to apply for a farm equipment loan and benefit from our hassle-free and quick loan approval and finance disbursement process. We’ll help you increase your farming produce by financing the right equipment for you.
