Updated: 4 October 2026
Axis Bank offers a Tractor Loan for new and used tractors under its Agriculture Loans portfolio. The loan is linked to the repo rate, and the bank decides the spread, so no single fixed rate is published. Funding goes up to 90% of the bank-approved price of the tractor, for up to 5 years.
Axis Bank also publishes the rates it actually disbursed in April to June 2026. They ran from 12.00% to 18.18% on new tractor loans and from 17.13% to 24.00% on used tractor loans, depending on tenure.
Interest rate
- The page says the loan is on the Repo Rate. The bank is free to decide the spread, and the spread may change during the tenure.
- The repo rate reset frequency is once in 3 months, or as decided by the bank, whichever is earlier.
- Loans sanctioned or disbursed before 1 October 2019 continue under MCLR, with a ceiling rate of 18% per annum and a processing fee of 0.75% plus taxes. Such borrowers can ask customer care about switching to the repo rate.
- The page does not list a card rate or a spread figure.
Rates actually disbursed from April to June 2026, as published by the bank:
| Product | Minimum | Maximum | Mean |
|---|---|---|---|
| New tractor loan, tenure up to 36 months | 12.00% | 18.18% | 14.00% |
| New tractor loan, tenure above 36 months | 12.00% | 18.87% | 14.17% |
| Used tractor loan, tenure up to 36 months | 17.13% | 24.00% | 19.58% |
| Used tractor loan, tenure above 36 months | 17.13% | 22.00% | 19.59% |
These are past disbursements, not an offer. The rate quoted to a farmer depends on the bank's assessment.
Who can borrow
- Age 18 years or more, and not above 75 years on the date of funding.
- Minimum 3 acres of land holding for farmers.
- A minimum repayment record or credit score is not stated on the page.
- The page describes new and used tractor loans. Loans for implements or refinance are not described.
Amount, security and margin
- Maximum finance: up to 90% of the bank-approved price on the particular tractor brand, subject to the bank's underwriting norms. The margin for a used tractor is not stated.
- Security: the tractor is hypothecated to Axis Bank, and the bank's charge is recorded on the registration certificate.
- Mortgage cases: the borrower's agricultural land is mortgaged to the bank as per applicable state law. The page also lists registered or equitable mortgage of residential, commercial or industrial property, and liquid security such as fixed deposits and LIC policy surrender value, as collateral.
- The bank finances tractors of all leading manufacturers in India.
Tenure and repayment
Repayment period is up to 5 years. The options are monthly, quarterly and half-yearly instalments, and the frequency allowed depends on the product variant. A moratorium is not mentioned.
Fees and charges
Schedule of charges for Farm Mechanization, Businesses of Bharat Banking, effective 19 June 2026. GST is extra wherever applicable.
| Charge | Amount |
|---|---|
| Processing fee, new tractor loan | Up to 2% plus GST |
| Processing fee, used tractor loan | Up to 2.5% plus GST |
| Valuation charges | ₹200 to ₹650 plus GST |
| Penal charge on overdue amount (after the first EMI) | 8% per annum, with a stated cap per instance |
| Foreclosure and part-payment | 4.00% of the amount |
| Cheque bounce, cheque swap | ₹500 each instance |
| Duplicate statement, duplicate repayment schedule | ₹250 each instance |
| Duplicate no dues certificate or NOC | ₹50 |
| Loan cancellation or re-booking | ₹500 |
| Stamp duty | On actuals |
No processing fee or service charge applies to farm mechanization loans of ₹50,000 or less. The page also gives the foreclosure charge as applying for the whole tenure.
Documents and how to apply
- Duly filled and signed application form.
- KYC documents.
- Proof of land ownership, wherever applicable.
- Income documents, wherever applicable.
- Pro forma invoice or quotation for the tractor.
Apply at an Axis Bank branch or retail asset centre, or through the bank's sales representative at the dealership. The bank says it conveys its decision within 30 working days of receiving a complete application. Customer care: 1800 4030 or 1800 8911 (toll free).
Used tractor loan
A used tractor loan exists, with a processing fee of up to 2.5% plus GST. Disbursed rates were higher than for new tractors, as the table above shows. Maximum finance and margin for used tractors are not published separately.
Check before signing
- Ask whether the rate is floating on the repo rate, how often it resets and what spread is being charged today. Ask for the reducing balance EMI schedule in writing.
- Ask for the total processing fee in rupees including GST, and the valuation charge.
- Foreclosure and part-payment cost 4%, so ask what the cost will be if the loan is closed early after a good harvest.
- Check that no insurance or other product has been added to the loan amount without a clear request.
- Compare the rate, fee and repayment dates with the bank where the farm account is held, and with the Kisan Credit Card route.
Use the EMI calculator for the monthly instalment and the on-road price tool for the amount to be financed. See tractor loans overview, tractor subsidy, tractor prices and tractor dealers.
Sources
- Axis Bank, Tractor Loans (features, eligibility, fees and charges, FAQs)
- Axis Bank, Rate of Interest Disbursed for Tractor Loans, April to June 2026