Updated: 4 October 2026
The State Bank of India tractor loan is called the Tractor Loan Scheme (TLS). SBI publishes it for the purchase of a tractor and its accessories, including insurance and registration charges. The loan is for individual farmers and runs from ₹2,00,000 to ₹25,00,000, with 25% margin and up to 5 years to repay.
SBI does not publish a single interest rate for it. The rate is one-year MCLR plus a spread of 3.60%, 4.00% or 4.35%, depending on how much collateral is offered. The facts below come from SBI's Agri and Rural product page and its agriculture interest structure circular.
Product and who it is for
- Name: Tractor Loan Scheme (TLS). The circular lists it as "New Tractor Loan Scheme".
- Purpose: cost of the tractor and its accessories, including insurance and registration charges.
- Borrower: individual farmers.
- Used tractors, implements and refinance: SBI's tractor loan page lists only the TLS for new tractors. Terms for used tractors, implements or refinance are not published there.
Interest rate
SBI's rate card for this loan is linked to the 1-year MCLR, with the spread set by the value of collateral against the loan. The agriculture interest structure circular dated 15.09.2026 lists the product as "New Tractor Loan Scheme" on 1 Year MCLR and carries the same three slabs as the product page.
| Collateral value | Interest rate as published |
|---|---|
| No collateral | 4.35% above 1-year MCLR |
| Above 50% to 100% of loan value | 4.00% above 1-year MCLR |
| Above 100% of loan value | 3.60% above 1-year MCLR |
The same circular carries an MCLR table "as on 15.09.2026", and the MCLR changes over time. The final rate on a sanction is therefore the MCLR in force plus the slab spread. This page does not add them into one figure. Collateral is optional, and a higher rate applies when none is offered.
Eligibility, margin and security
| Item | SBI terms |
|---|---|
| Land holding | Minimum agricultural land holding of 2 acres |
| Credit record | CRIF Highmark score above 600, or CIBIL score above 650, or no credit history |
| Age limit | Not stated on the product page |
| Margin | 25% of the cost of the tractor and accessories, including insurance and registration charges. Margin is paid before or with disbursement. |
| Loan amount | Minimum ₹2,00,000, maximum ₹25,00,000 |
| Primary security | Hypothecation of the tractor and accessories bought with the loan |
| Collateral | Optional. Accepted: Sovereign Gold Bonds, National Savings Certificates, shares of listed companies, units of mutual fund schemes approved by the bank, SBI fixed deposits, or equitable or registered mortgage of the applicant's land. |
Tenure and repayment
- Tenure is up to 5 years.
- Repayment is in half-yearly instalments, described as principal equated distribution with interest.
- The loan is paid directly to the authorised tractor dealer or supplier.
- A moratorium is not mentioned on the product page.
Fees and charges
The product page lists fees and charges of 1.50% of the loan amount. It does not break this fee into parts. A prepayment or foreclosure charge for this scheme is not stated on the product page. After disbursement, the original invoice must be submitted within 15 days and a copy of the Registration Certificate (RC) within 30 days.
Documents and how to apply
- Application form with the borrower's photo.
- Tractor quotation or proforma invoice.
- Proof of agricultural land or cultivation.
- Any other document asked for in the sanction.
SBI posts its Agriculture Loan Application Forms for individuals, co-applicants and guarantors on its Agri and Rural site, in English and Indian languages. The form goes to an SBI branch. The product page does not name a dealer point or a separate online application for the tractor loan. SBI's website lists the toll-free numbers 1800 1234, 1800 11 2211 and 1800 425 3800 for customer service.
What to check before signing
- Ask which slab is applied and what the MCLR is on the sanction date, and how often the rate resets.
- Confirm that the interest is charged on the reducing balance, not on the full loan amount for the full term.
- Insurance and registration are part of the financed cost. Ask whether insurance is taken as a separate premium or added to the loan.
- Ask for the 1.50% fee amount in rupees, plus GST if any, and every other charge, in writing.
- Ask what happens on early closure, since the product page is silent on it.
- Keep the invoice and RC dates in mind, 15 and 30 days after disbursement.
Use the EMI calculator to test half-yearly burden, the on-road price tool to estimate cost, and the tractor loan overview to see how other lenders compare. Check tractor subsidy and tractor prices, find tractor dealers, and read about the Kisan Credit Card for crop expenses.
Sources
- State Bank of India, Tractor Loan Scheme (TLS), Agri & Rural (page last updated 05-02-2026)
- State Bank of India, Agriculture Segment Interest Structure as on 15.09.2026
- State Bank of India, Agriculture Loan Application Forms
- State Bank of India, Farm Mechanization Loan: Tractor Loan