Farm equipment loans from farm equipment finance companies are loans to small businesses. These loans provide the necessary financial resources to purchase agricultural equipment.
When a farmer uses the income from farm equipment finance to buy the equipment he needs, that equipment will serve as a guarantee for the same loan used to purchase it.
Since the equipment is the most essential but expensive part of growing a successful farm, loans for agricultural equipment are often the difference between a successful and a failing farm.
However, instead of deciding whether to borrow in the form of a loan for agricultural equipment, the decision is where to get that loan.
The selected lender will determine the loan amount, interest rates, and repayment terms that accompany agricultural equipment financing.
Farm Equipment Finance Companies
Loans for agricultural equipment can come from many different sources. Government agencies, regulated banks, and financial companies offer financing to purchase agricultural equipment.
Here in this post, we have put together the details of some of the farm equipment finance companies so you can decide which one is best suited to your needs.
Mahindra Finance
Among the farm equipment tractor is one piece of equipment that every farmer uses to plow their fields. It is one of the primary farm equipment. In India, Mahindra Finance is one of the leading tractor lender companies and offers various financial products.
With their credits for agricultural machinery, you can now easily buy tractors and other tools for agricultural and commercial use.
You can get loans for a wide range of tractors and other agricultural equipment without the need for a mortgage of land. The process of getting a loan is simple and easy, with flexible documentation requirements tailored to your needs.
Furthermore, the loan will be approved within two days of submitting the documents.
Their tractor loan is fully tailored to your needs, with cash flow-based repayments. It means Monthly/quarterly/semi-annually, and in five years, the tractor will become loan-free.
The company does not offer a minimum or maximum loan amount for a tractor. Loan amounts for tractors can be tailored to your individual needs. The minimum tenure period for the loan is three months, and the maximum is five years. You can go to mahindrafinance.com for more details.
State Bank of India (SBI) Farm Equipment Loans
The State Bank of India is always two steps forward in farm equipment finance companies. It covers approx. 1.01 crore farmers through more than 1600 of its branches.
SBI agricultural products cover everything from farm products to agricultural equipment. SBI provides loans to farmers to produce crops such as KCC (Kisan credit card). And other loans to buy agriculture machinery.
The SBI has organized a section that revolves around the needs of farmers. The bank’s agricultural products benefit from low-interest rates. Banks serve farmers better simply by avoiding intermediaries to offer the cheapest loans.
The SBI understands that delays in financing can have significant consequences for farmers. If there is a delay in finance, they can lose the sowing/growing season. It quickly sanctions loans and ensures that the loan is used as soon as possible to protect farmers from this.
State Bank’s other outstanding feature of farm equipment finance is that there are no hidden fees. So you can get a loan for agricultural purposes from SBI. To know details about the different farm equipment loans visit sbi.co.in.
L&T (Larson & Turbo) Financial Service for Farm Equipment
Larson & Turbo (L&T) Financial Services has been linked in the rural finance industry for a long time and supports businesses and livelihoods. Each customer is assured of the best offers to ensure easy financing of tractors and agricultural equipment.
They also believe that flexible loan terms can help customers balance their payment cycles to fit their crop patterns. Therefore, when it comes to harvesting more, the customers will benefit.
From them, all farm equipment categories like tractor finance are available across manufacturers. They are connected with all major manufacturers and models. The loan is also available for borrowers who have small land. The repayment period of the loan is seven years.
They provide finance for income-generating units for rural and urban entrepreneurs. The loan process is simple and does not have hidden charges. The loan repayment option is customized and is based on the pattern of the harvest of the crop.
So you can get a loan for farm equipment from them. You can see the details about the farm equipment loan at L&T official site.
Also Read: List of Agricultural Products and Their Uses
John Deere Financial India Private Limited (JDFIPL)
Registered with the Reserve Bank of India (RBI) John Deere Financial Private Limited (JDFIPL) India is a non-banking finance company. The company provides customized financial products and solutions that meet customer needs, enabling customers to buy John Deere agricultural equipment and tools.
John Deere Financial India Private Limited (JDFIPL) prides itself on providing comprehensive financial solutions to its clients transparently and speedily. JDFIPL offers financial solutions for all products manufactured and sold by John Deere, such as Tractors, Harvesters, and Implements.
They also offer Refinance, top-up, and used (pre-owned) financial solutions for farm equipment.
Monthly/quarterly/ semi-annual loan repayment options are available to suit client needs. JDFIPL uses the highest quality technology for immediate loan approval and offers multiple digital repayment options.
Due to the variety of its products and best-in-class/technology services, John Deere Financial India Private Limited (JDFIPL) has been the choice of John Deere customers for several years.
By visiting deere.co.in you can know the details of their other farm equipment finance.
USDA Farm Operating Loans
Establishing, maintaining, and strengthening a farm or ranch FSA’s Direct Farm Operating loan is a vital resource. For new farmers, FSA Direct Farmer Loans provide a necessary gateway to agricultural production by financing the running costs of the farm.
USDA Farm Service Agency (FSA) direct operating loans can cover many of the costs of running a farm, such as fuel, insurance, and family living expenses. The most important thing, of course, is that a farmer can use it to support the purchase of agricultural equipment.
And when Direct Operating Loans are for financing agricultural equipment, the repayment terms can be up to seven years. However, other purposes of the loan can only be valid repayment terms of up to one year.
This type of loan for buying farm equipment can offer finance of up to $ 400,000 and does not require a down payment. Interest rates for agricultural equipment loans are currently 3.75% but are calculated, updated, and published monthly.
US Department of Agriculture Guaranteed Operating Loans
Agricultural loan programs guaranteed by the USDA Farm Service Agency (FSA) help family farmers and ranchers obtain loans on reasonable terms from the commercial lenders whom the USDA approves. A loan from this program can be used to purchase livestock, farm equipment, seed, feed, fuel, and other items.
The lender and the borrower will negotiate agricultural equipment loan rates for this financing option. The USDA does not set repayment terms because it will not issue any direct loans through this program. They only provide partial guarantees for this loan program.
USDA, however, notes that Guaranteed Operating Loans are usually repaid within seven years.
Guaranteed Operating Loans for farm equipment can be up to $ 1,750,000. And the USDA bear guarantees up to 95% of the principal amount and interest-bearing debt borrowed through this program.
Eligibility will depend on the lender. However, you can contact your local FSA Farm Loan Terms to get a better idea of the lenders and what qualifications they are looking for as part of a USDA-guaranteed loan program.
Conclusion
There are many loans for farm equipment in the financial sector for small businesses. Financing agricultural equipment is trendy because most farms have to invest in equipment before harvesting and maximizing their income.
As a result, many lenders offer farm equipment finance – both good and bad. So is essential to know your options when looking for a farm equipment loan to ensure you get the best possible financing.
The farm equipment finance companies are good agricultural equipment lenders, each with different heights to meet your farm’s unique needs. So whether you need to finance reusable farm equipment or buy new ones, there is an outstanding farm equipment loan for you with these lenders.
