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Compare Tractor Loan Rates 2026
| Bank / NBFC | Interest Rate | Max Financing | Max Tenure | Processing Fee |
|---|---|---|---|---|
| SBI | 1-year MCLR + 3.60% to 4.35% | 75% (25% margin) | 5 years | 1.50% |
| Punjab National Bank | Not published for tractors | 70% (Tractor Xpress) | 7 to 9 years | Nil to ₹3 lakh, 0.30% above |
| Bank of Baroda | 12.25% to 14.50% (fixed, by loan to value) | 85% (15% margin) | 6 to 9 years | 1% |
| Canara Bank | 1-year MCLR + 1.55% to 2.30% | 75% to 85% above ₹2 lakh | 5 to 9 years | Not published |
| HDFC Bank | 9% to 23.01% | 90% | 5 years | Up to 2% |
| ICICI Bank | Not published | Not published | 6 years | 2% |
| Axis Bank | 12.00% to 18.87% (new, Apr to Jun 2026) | 90% | 5 years | Up to 2% |
| Kotak Mahindra Bank | MCLR or Reference Rate to 30% | 90% | Not published | Up to 3% |
| L&T Finance | From 10% | Not published | 6 years | Up to 1% or ₹30,000 |
| Cholamandalam | 12% to 28% (new), 17% to 28% (used) | Not published | Not published | 0.25% to 2% |
Figures are the ones each lender publishes, checked in October 2026. "Not published" means the lender's own pages do not state it. A rate range is not an offer: the rate on your sanction letter depends on land, credit record and tenure. Open a lender's name for its source documents.
Tractor loan by lender
Axis Bank tractor loanBank of Baroda tractor loanCanara Bank tractor loanCholamandalam tractor loanHDFC Bank tractor loanICICI Bank tractor loanKotak tractor loanL&T Finance tractor loanPNB tractor loanSBI tractor loan
❓ Frequently Asked Questions
What is the interest rate on tractor loan from SBI in 2026? +
SBI does not publish one flat rate. Its Tractor Loan Scheme is priced at 3.60%, 4.00% or 4.35% above the 1-year MCLR, depending on the collateral offered, so the rate moves when the MCLR moves. The scheme lends ₹2 lakh to ₹25 lakh with a 25% margin, up to 5 years to repay and a fee of 1.50% of the loan.
Which lender publishes the lowest tractor loan rate? +
Among the lenders compared here, HDFC Bank publishes the lowest starting figure, a range of 9% to 23.01%. L&T Finance says "from 10%", and Axis Bank and Cholamandalam start at 12% on a new tractor. A starting rate is not the rate a borrower gets: ask for the rate on the sanction letter and the total amount to be repaid.
How much land is needed for a tractor loan? +
It differs by lender. SBI asks for at least 2 acres, PNB for 2.5 acres of irrigated land or its equivalent, and Axis Bank and Kotak Mahindra Bank for 3 acres. Banks take the land record (Khasra or Khatauni) as the main paper, and some lenders also take the tractor itself as the only security.
What is the minimum down payment for a tractor loan? +
HDFC Bank, Axis Bank and Kotak Mahindra Bank say they finance up to 90% of the tractor cost, so the margin is at least 10%. SBI asks for a 25% margin, and PNB Tractor Xpress funds up to 70%. A government subsidy, where a state pays one on tractors, is usually paid after purchase and does not replace the margin.