Updated: 4 October 2026
HDFC Bank sells this product as "Tractor Loan" under its Agri Banking section. It finances new tractors, used tractors, harvesters and farm implements. For a new tractor the bank states finance of up to 90% of the tractor cost, so the margin or down payment is at least the remaining 10%.
The bank does not publish one fixed interest rate. It publishes a range and a table of rates actually given to customers in April to June 2026, both shown below.
Types of tractor loan
| Type | Who it is for | Funding stated |
|---|---|---|
| New Tractor Loan | Purchase of a new tractor | Up to 90% of the tractor cost |
| Used Tractor Loan | Purchase of a used tractor, or refinance, based on the repayment history of the parent loan and ownership of an existing freehold tractor | Up to 85% or up to ₹5 lakh |
| Harvester Loan | Tractor-mounted harvesters, self-propelled combine harvesters, chain harvesters | Up to 70% |
| Farm Implement Loan | Rotavator, thresher, plough, leveler, trolley or trailer, loader, dozer and similar | Up to 70% of the invoice price |
Interest rate
- Headline range on the product page: 9% to 23.01% per annum, with terms and conditions applying.
- Calculator range: 10% to 21% per annum.
- FAQ wording: rates generally start around 10.50% per annum and the rate given depends on factors such as credit score and loan amount.
- Whether the rate is fixed or floating is not stated on the page.
The bank also discloses rates offered to customers during April to June 2026. These are past averages, not a quote.
| Measure, April to June 2026 | Minimum | Maximum | Average |
|---|---|---|---|
| Bank IRR (%) | 8.13 | 22 | 15.19 |
| Bank APR (%) | 9 | 23.32 | 15.42 |
The APR is higher than the IRR because it includes charges. The page notes that the processing and other fees are shown exclusive of GST.
Eligibility
| Segment | Nationality | Age | Income |
|---|---|---|---|
| Farmers | Indian | 18 to 60 years | ₹1 lakh a year |
| Commercial segments | Indian | 18 to 60 years | ₹1.5 lakh a year |
A minimum land holding is not stated on the page. Loans are available with or without land mortgage, and are granted on the basis of the registration certificate, repayment track record or income proof. Guarantor requirements are not published.
Tenure and repayment
- The loan features list repayment terms of 12 to 60 months. The calculator allows 12 to 72 months and shows a term of up to 6 years for amounts up to ₹10,00,000.
- The calculator offers monthly, quarterly and half-yearly instalments, plus an advance EMI option.
- A moratorium is not mentioned.
- Insurance cover (asset insurance and life insurance) is available through the bank.
Fees and charges
| Charge | As published |
|---|---|
| Processing fee | Up to 2% of loan amount. Nil for loan facilities up to ₹5 lakh at customer level for Micro and Small Enterprises, subject to URC submission before disbursal |
| Premature closure | 6% of principal outstanding within 6 months of disbursement; 4% after 6 months and before 12 months; 2% after 12 months. Nil for Micro and Small Enterprises on floating rate loans and on fixed rate loans up to ₹50 lakh |
| Loan cancellation | Interest is borne by the customer. Processing fee, stamp duty and RTO charges are not refunded |
| Documentation, agri mortgage and used tractor valuation cases | ₹1,500 each |
| Collateral and ACH documentation | ₹750 per case |
| Cheque, ECS, SI or NACH return | ₹550 per instance |
| Cheque, ECS or SI swap | ₹500 per instance |
| Duplicate no due certificate or NOC | ₹500 per instance |
| Loan reschedulement or rebooking | ₹1,000 |
| Duplicate amortization schedule | ₹200 per schedule |
| CIBIL report, on request | ₹50 per instance |
| Legal, repossession and incidental | At actuals |
GST and other levies are added where notified. A late EMI attracts interest for the days of delay at the contracted rate, added to the next EMI.
Documents and how to apply
- Identity: voter's card, permanent driving licence, valid passport or Aadhaar card.
- Address: utility bill or property tax receipt in the customer's name, Aadhaar card or valid passport.
- Income: bank statement for the last 3 to 6 months, Tehsildar certificate, registration certificate of the existing asset or repayment track record, salary proof where applicable.
- Apply: online through the link on the bank's tractor loan page, or at the nearest HDFC Bank branch. Dealer-point application and a dedicated agri helpline number are not stated on the page.
Before signing
- Ask whether the rate is fixed or floating and whether it is quoted as a reducing balance rate. Compare offers on APR, which includes charges, not on the headline rate alone.
- Ask for the most important terms and conditions sheet and read it before signing. The bank directs customers to it.
- Ask whether asset or life insurance is added to the loan amount and whether it is optional.
- Note the closure charge slab. Paying off the loan early costs more in the first year.
- Ask for the margin money and the full charge list in writing before paying the dealer.
Work out the monthly instalment with the EMI calculator and the full cost with the on-road price tool. See the tractor loan overview, tractor subsidy, tractor prices, tractor dealers and Kisan Credit Card.