Updated: 4 October 2026
Bank of Baroda offers two tractor finance products. "Tractor Loans" carries a fixed rate of 12.25% to 14.50% depending on how much of the tractor value is financed, with a monthly, quarterly or half-yearly repayment over 72 months. "Financing Tractors and Heavy Agriculture Machinery" is an MCLR-linked term loan for farmers with irrigated land, repayable over up to 9 years.
The bank's pages do not carry a date for the rates, so the rate should be confirmed at the branch before signing.
The two products and who they are for
| Product | Meant for | Land condition |
|---|---|---|
| Tractor Loans: Agricultural end use and Agri Hiring | Tractor used on own farm or hired out for farm work | Minimum 2.5 acres of agricultural land, single or jointly owned |
| Tractor Loans: Agri cum commercial end use | Tractor used for farm and commercial work | Land holding up to 2.5 acres, single or jointly owned |
| Tractor Loans: Tatkal Tractor Loan | Tatkal category of Tractor Loans | Agricultural land not applicable |
| Financing Tractors and Heavy Agriculture Machinery | New tractor, tractor-drawn implements, power tiller and other agriculture machines | Minimum 4 acres of irrigated land or the corresponding acreage under the state land ceiling act; below 6 acres, only tractors up to 35 HP |
The "Tractor Loans" page states no restriction on the HP range. Used tractor finance is not mentioned on either page. The second product lists the purchase of a new tractor.
Interest rate
Under "Tractor Loans" the rate is published as FIXED and depends on loan to value (LTV), that is the share of the tractor value that is financed.
| LTV | Agri end use and Agri Hiring | Agri cum commercial | Tatkal |
|---|---|---|---|
| Above 80% and up to 85% | 14.50% | NA | NA |
| Above 70% and up to 80% | 14% | 14% | NA |
| Above 60% and up to 70% | 13% | 13% | 13% |
| Above 50% and up to 60% | 12.50% | 12.50% | 12.50% |
| Up to 50% | 12.25% | 12.25% | 12.25% |
Under "Financing Tractors and Heavy Agriculture Machinery" the rate is linked to the one year MCLR plus a spread (SP). The page does not give the MCLR value or the SP, so no single percentage can be stated.
| Limit and period | Rate of interest |
|---|---|
| Limit up to ₹3 lakh | One year MCLR + SP |
| Limit above ₹3 lakh and less than ₹25 lakh | One year MCLR + SP + 1.25% |
| Limit ₹25 lakh and above, loan period less than 3 years | One year MCLR + SP + 2.00% |
| Limit ₹25 lakh and above, 3 years and above and up to 5 years | One year MCLR + SP + 2.10% |
| Limit ₹25 lakh and above, above 5 years and up to 7 years | One year MCLR + SP + 2.15% |
Margin, maximum finance and security
| Item | Agri end use and Agri Hiring | Agri cum commercial | Tatkal |
|---|---|---|---|
| Minimum margin | 15% | 20% | 30% |
| Maximum LTV | 85% | 80% | 70% |
| Security | Hypothecation of vehicle | Hypothecation of vehicle | Hypothecation of vehicle |
For "Financing Tractors and Heavy Agriculture Machinery" the minimum margin is 25%. The pages do not state a rupee ceiling on the loan, and do not mention land mortgage or a guarantor for the tractor loan.
Who can apply
- Residence: a local resident for at least 3 years in the service area of the branch, shown by documentary evidence issued by the Government of India.
- Age: not less than 18 years and not more than 70 years at the time of agreement. If the borrower is above 70, a family member (blood relation or legal heir) must be taken as co-applicant.
- Land: as in the first table above.
Tenure and repayment
- Agri end use, Agri Hiring and Agri cum commercial: 72 months (6 years), repayable monthly, quarterly or half-yearly. Half-yearly repayment is given only for tractors up to 50 HP. Moratorium is 180 days for half-yearly, 90 days for quarterly and 30 days for monthly instalments.
- Tatkal Tractor Loan: 60 months (5 years), monthly or quarterly, with a moratorium of 90 days for quarterly and 30 days for monthly.
- Financing Tractors and Heavy Agriculture Machinery: linked with land holding, up to 9 years. Quarterly, half-yearly or yearly repayment is granted depending on the pattern of the farmer's income.
Fees and charges
| Charge | Tractor Loans | Financing Tractors and Heavy Agriculture Machinery |
|---|---|---|
| Processing charges | 1% of loan amount | Nil for aggregate agriculture exposure up to ₹3 lakh; above ₹3 lakh, 1% of the limit sanctioned, with a maximum of ₹100 lakh |
| Inspection charges | Not stated | Nil up to ₹3 lakh; ₹250 above ₹3 lakh to ₹10 lakh; ₹1,000 above ₹10 lakh to ₹1 crore; ₹5,000 above ₹1 crore |
Prepayment and foreclosure terms are not stated on either product page.
Documents and how to apply
- KYC documents (Aadhaar, Voter ID, PAN card, driving licence and similar).
- Passport size photo.
- Land record.
- Quotation or invoice (if available for Tractor Loans).
- Income tax returns (if available for Tractor Loans).
The tractor finance page has an online application for agriculture loans at bobcrm.bankofbaroda.co.in/agriloans. Helpline numbers: 1800 5700 or 1800 5000 (toll free, domestic), and +91 79-66296009 from abroad.
What to check before signing
- Rate type: ask whether the loan is on the fixed table or the MCLR-linked pattern, and what the one year MCLR and SP are on the day of sanction. A fixed rate does not change; an MCLR-linked rate can.
- Flat or reducing: ask in writing whether interest is charged on the reducing balance, and ask for the full repayment schedule.
- Insurance: the Tractor Loans page mentions provisions for credit life insurance cover. Ask whether it is optional, who the insurer is and whether the premium is added to the loan.
- Charges: ask for the processing fee, inspection charge and prepayment terms in writing, since prepayment terms are not published on the product pages.
See the tractor loan overview, work out instalments with the EMI calculator and check the on-road price tool. A buyer who qualifies for a tractor subsidy should read the subsidy rules first. Browse tractors and tractor dealers, and see the Kisan Credit Card for crop credit.
Sources
- Bank of Baroda, Tractor Loans (features, eligibility, MITC, fixed rate table)
- Bank of Baroda, Financing Tractors and Heavy Agriculture Machinery (eligibility, fees, MITC, MCLR-linked rates)