Updated: 4 October 2026
L&T Finance sells a New Tractor Loan and a Used Tractor Loan (also called the Pre-Owned Tractor Loan) for farmers. The only rate on its product page is "competitive rates starting from 10% p.a.", subject to credit assessment and RBI regulations. The page gives no upper limit and no date for the rate, so the rate a borrower gets can only be known from the sanction letter.
The loan is available up to ₹15 lakh over 12 to 72 months. Income is judged on land holding and per-acre yield, and land ownership papers are asked for.
Products and who they are for
| Product | For | Notes from the lender |
|---|---|---|
| New Tractor Loan | Farmers and agricultural business owners buying a new tractor | Processing fee line is headed New Tractor & Implement, so implements are covered under the same line |
| Used Tractor Loan (Pre-Owned Tractor Loan) | Farmers and eligible individuals buying a second-hand tractor | Tenure up to 72 months; vehicle age limits are not stated on the page |
| Kisan Suvidha | Existing borrowers needing an additional amount | Listed in the fee schedule only; no separate product page was available |
| Refinance | Borrowers refinancing a tractor | Listed in the fee schedule as Used/Refinance; terms beyond the fee are not stated |
Interest rate
- Published rate: "starting from 10% p.a." on the New Tractor Loan page.
- Not published: the maximum rate, whether it is flat or reducing, and any date or circular for the rate. The Used Tractor Loan page gives no rate and says the rate depends on eligibility, loan amount, tenure and risk assessment.
Need help getting a tractor loan?
Eligibility, finance and security
- Age: 18 to 65 years.
- Income: based on land holding and per-acre yield. A good credit history is preferred, but no minimum score is stated.
- Maximum finance: up to ₹15 lakh on the New Tractor Loan. The maximum on the Used Tractor Loan is not stated.
- Margin or down payment: not stated on either page.
- Security: agricultural land documents are asked as proof of ownership. Whether the tractor is hypothecated and whether land is mortgaged are not stated on the pages, so ask for this in writing.
- Minimum land holding: not stated as a number.
Tenure and repayment
- 12 to 72 months on the New Tractor Loan; up to 72 months on the Used Tractor Loan.
- Used Tractor Loan repayment can be structured around farm income and harvest patterns, with instalments matched to crop cycles. The pattern (monthly, quarterly or half-yearly) and any moratorium are not stated.
- Repayment is by ACH/ECS mandate. The loan amount is credited within 48 hours of approval, paid directly to the tractor dealer.
Fees and charges
| Charge | Amount stated by L&T Finance |
|---|---|
| Processing fee, new tractor and implement | Up to 1% of loan amount or ₹30,000, whichever is lower, plus taxes |
| Processing fee, Kisan Suvidha | Up to 2% of the additional amount or ₹10,000, whichever is lower, plus taxes |
| Processing fee, used or refinance | Up to 2% or ₹10,000, whichever is lower, plus taxes |
| Prepayment or foreclosure | Up to 2% of principal outstanding, plus taxes |
| Late payment | Up to 2% per month on the overdue EMI |
| Asset valuation fee | Up to ₹1,200, plus taxes |
| EMI dishonour | ₹500 to ₹2,000, depending on loan amount |
Documents and how to apply
- ID proof: Aadhaar, PAN, Voter ID, Driving Licence or Passport.
- Address proof: government-issued ID or a utility bill.
- Land ownership proof and an ACH/ECS mandate.
- Click Apply Now on the product page and fill the online form.
- A loan representative contacts the applicant.
- Eligibility and documents are verified.
- The amount is disbursed directly to the tractor dealer.
The corporate office number shown on the L&T Finance site is +91 22 6212 5000. A branch locator is also on the site.
What to check before signing
- Ask whether the rate is flat or reducing. A flat rate costs more than the same number on a reducing balance.
- Ask for the exact rate, not the "starting from" rate, and the total amount to be repaid over the full tenure.
- Check whether insurance or other charges are added to the loan amount.
- Read the processing fee, valuation fee and foreclosure charge in the sanction letter against the table above.
- Ask what security is taken: the tractor only, or land documents as well.
Work out the monthly cost with the EMI calculator and check the price with the on-road price tool. See the tractor loan overview, tractor subsidy, tractor prices and tractor dealers. A farmer with a Kisan Credit Card can also read about the KCC.
Sources
- L&T Finance, Tractor Loan (product page: rate, eligibility, fees, documents)
- L&T Finance, Used Tractor Loan (pre-owned tractor loan page)