Updated: 4 October 2026
Kotak Mahindra Bank lends for a new or used tractor under its Farm Equipment Loan, with up to 90% of the tractor value financed. It does not publish a single rate. The fees page gives a floor of the prevailing MCLR or Reference Rate and a ceiling of 30%, and the page carries no effective date.
Eligibility is short: at least 3 acres in the borrower's name, 2 years at the same residence, and 2 years in business where applicable. Tenure, repayment pattern and moratorium are not stated on the bank's pages.
Product and who it is for
- Name: Farm Equipment Loan, also described as Tractor and Farm Equipment Financing.
- Financed: a new tractor, an old tractor, rotavator, trailer, loader, combined harvester, sprayers, dusters, threshers, winnowers and seed-cum-fertilizer drill.
- Existing customers: loans for captive usage are offered to them.
- Insurance: a life insurance shield called Kotak Kisan Suraksha is available.
- Refinance of a tractor already owned is not mentioned.
Interest rate
| Item | As published |
|---|---|
| Minimum | Prevailing MCLR or Reference Rate |
| Maximum | 30% |
| Rate for a given borrower | Not published; the sanction terms decide it |
The bank does not state the current MCLR on these pages, and does not say whether a loan is fixed or floating. The pre-payment line below applies to fixed-rate loans. A farmer should get the exact rate, and whether it is on a reducing balance, in writing.
Eligibility
- Minimum 3 acres of land in the name of the borrower.
- Residential stability of 2 years.
- 2 years of business experience, if applicable.
- Age limit and repayment record are not stated.
Margin, maximum finance and security
The loan is "up to 90% of tractor value". The dealer collects the margin money, and its receipt is a pre-disbursement document. The bank's pages do not give a rupee cap. The security is not stated, though the insurance on the tractor must be pledged to the bank.
Tenure and repayment
Tenure, instalment frequency (monthly, quarterly or half-yearly) and moratorium are not published on the product, eligibility or fees pages. The loan agreement and sanction letter must give them. Late instalments attract a penal charge of 8% per annum on the overdue amount, charged for the actual number of days, plus taxes.
Fees and charges
| Charge | Published amount |
|---|---|
| Service charges | Up to 3% of loan amount |
| Documentation charges | Up to ₹5,000 |
| Credit administration charges | Up to ₹2,000 |
| Stamping charges | At actuals |
| Valuation (used vehicles) | ₹1,000 |
| Loan cancellation | ₹2,500 per agreement |
| Dishonour (bounced instalment) | ₹750 plus taxes per instance |
| Change in instalment due date | ₹1,000 plus taxes |
| Cheque or mandate swap | ₹500 per instance |
| Duplicate NOC, duplicate foreclosure statement, statement copies | ₹500 plus taxes each |
| Rebooking | ₹2,500 plus taxes |
| Repossession | Minimum ₹15,000 or actuals, whichever is higher |
| Legal and incidental | Minimum ₹5,000 or actuals |
Prepayment and foreclosure
- Fixed-rate loan to an individual: 4% pre-payment charge, or 2% on part pre-payment, on the amount prepaid.
- Part pre-payment is allowed a maximum of 2 times a year.
- Loan assignment: 2% of principal outstanding or ₹5,000, whichever is less.
- Charges for a floating-rate loan are not shown on the page.
Used tractor
An old tractor is financed under the same product. The extra published item is the ₹1,000 valuation charge. The age limit for a used tractor and the margin for it are not stated.
Documents
Before sanction:
- Identity proof: Voter ID card, PAN card, Passport, Aadhaar card, Driving Licence or similar.
- Address proof: Voter ID card, Passport, Aadhaar card, Driving Licence or similar.
- Agricultural land proof, if available.
- Proof of signature verification.
Before disbursement: fully executed loan documents, the original tractor invoice from the dealer, the margin money receipt from the dealer, and insurance pledged to Kotak Mahindra Bank.
How to apply and contact
- Apply online through the Apply Now button on the Farm Equipment Loan page, or
- visit the nearest Kotak branch, or meet a Relationship Manager.
- Customer care: 1800 4100 (the help page shows 9am to 6pm).
What to check before signing
- Ask for the rate in the sanction letter, whether it is flat or reducing, and whether it can change during the loan.
- Ask whether Kotak Kisan Suraksha or any other insurance is added to the loan amount, and its cost.
- Add the service, documentation and credit administration charges, and see which are deducted before payment to the dealer.
- Get the instalment schedule and check it against the crop sale. A late instalment adds the 8% penal charge, and a bounced one adds ₹750.
- Ask for the prepayment terms in writing.
Use the EMI calculator, the on-road price tool and the tractor loan overview. Check tractor subsidy before booking. See tractors, tractor dealers and the Kisan Credit Card.
Sources
- Kotak Mahindra Bank, Farm Equipment Loan (tractor and farm equipment finance)
- Kotak Mahindra Bank, Farm Equipment Loan: eligibility
- Kotak Mahindra Bank, Farm Equipment Loan: required documents
- Kotak Mahindra Bank, Farm Equipment Loan: fees and charges
- Kotak Mahindra Bank help centre, How do I approach Kotak Mahindra Bank for a tractor loan?