When To Consider Tractor Refinancing On Your Old tractor?
It might be time to get a refinance loan on existing tractor!
Refinancing means getting a new loan on your old obligation. Consumers usually go for refinance loans to take advantage of the lower interest rate and reduce their financial stress.
What is Tractor Refinance?
Having understood the meaning of refinance, we will now understand the meaning of tractor refinance. Tractor Refinance means taking a new loan against your existing tractor. In other terms, it is called a loan against your old tractor. It is a great alternative for farmers who often face challenges in paying their debts or catering to their financial needs related to their farming or personal matters. In order to get a loan against tractor, you need to get the Tractor Valuation done of your old tractor. This is the first & most critical information you should have to understand the approximate loan value that will get sanctioned and thus will meet your finance needs.
However, there are certain terms that need to be met to get a loan against your old tractor. These include:
- The old tractor on which you are taking a refinancing loan needs to be hypothecation-free. It means the old tractor loan needs to be fully paid.
- Your credit score or CIBIL score must be above 650+. A higher CIBIL score means increased chances of getting a loan against your used tractor.
If you meet the above two conditions and are still trying to decide when to go for tractor refinance, this article is for you. We will attempt to provide the indicators for seeking a loan against a tractor.
Indicators For Taking A Loan Against Tractor
Whether to refinance your tractor loan and when is the right time to take a loan against a tractor is often a difficult decision. The reason is the unavailability of adequate and correct information on a complex topic like tractor refinance. We have made it easy for you by providing a comprehensive list of signals indicating the right time to consider tractor refinancing.
Lower Interest Rates
One of the most compelling reasons for refinancing your tractor is the opportunity to secure a lower interest rate. Interest rates can fluctuate over time due to changes in the financial market, government policies, or your improved creditworthiness.
If you notice that interest rates have dropped significantly then it will help you save in the long-term and at the same result in smaller EMIs which always helps!
Improved CIBIL Score
CIBIL Score is a record of your loan repayment history. It determines your creditworthiness and is pivotal in determining the interest rate you qualify for when financing your tractor.
If you have diligently worked on improving your credit score since taking out your original tractor loan, you may be eligible for a lower interest rate through tractor refinancing.
A higher CIBIL score of 650+ is a testament to your improved financial stability and reliability as a borrower.
Financial Stress Reduction
Changes in your financial situation, such as a lower income or unexpected expenses, can strain your ability to comfortably meet your tractor loan payments. In such cases, refinancing can extend the loan term or reduce the monthly payment amount, alleviating financial stress and preventing late payments.
How To Avail Tractor Refinance On Your Old Tractor On Tractorkarvan?
Refinancing your tractor can be an essential financial move under the right circumstances. Whether you are looking to lower your interest rate, improve your cash flow, or adapt to changes in your financial situation, carefully assessing when and why to refinance is crucial. More importantly, getting the right financial institution or a digital platform that offers hassle-free tractor refinancing at competitive interest rates is necessary. Herein comes the role of digital platforms like Tractorkarvan.
Tractorkarvan is a leading platform trusted by Indian farmers to fulfil their farm mechanisation dreams. It offers end-to-end assistance to them to explore, buy, sell, and finance their used tractor. In an era where tractors are still not accessible to all, Tractorkarvan makes their second-hand tractor buying experience smoother and more convenient. In addition to this, Tractorkarvan also offer a range of farm implements, harvesters, and Tractors to address all their farming-related requirements.
Contact us – If farmers want to share any valuable information or experiences related to farming, they can connect with us via phone or WhatsApp at 9599273766 or you can write to us at “[email protected]”. Through Kisan of India, we will convey your message to the people, because we believe that if the farmers are advanced then the country is happy.