Best Agri Equipment Loans in India 2025
Boost your farm’s productivity with LoanPao’s agri equipment loans from 7% p.a. and approvals in 24 hours.
Apply NowAbout Agri Equipment Loans in India 2025
An agri equipment loan is a financial product designed to help farmers purchase machinery like tractors, harvesters, rotavators, and irrigation systems to boost productivity. In 2025, with India’s farm mechanization rate below 40%, these loans are vital for modernizing agriculture, supported by RBI’s Priority Sector Lending (PSL) mandate. LoanPao partners with 250+ trusted lenders, offering rates from 7% p.a., tenures up to 60 months, and approvals in 24 hours. Whether you’re upgrading equipment or starting anew, our digital process ensures minimal paperwork and crop-cycle-based repayments. Apply today!
Key Features of Agri Equipment Loans
- Loan Amount: Up to 90% of equipment cost, from ₹35,000 to ₹4.25 lakh. [](https://www.ltfinance.com/agri-implement-loan)
- Interest Rates: Starting at 7% p.a. (fixed or variable). [](https://www.ltfinance.com/agri-implement-loan)
- Tenure: Up to 60 months, aligned with crop cycles. [](https://www.indusind.com/in/en/personal/loans/vehicle-loan/tractors-and-farm-equipment.html)
- Collateral: Often secured by equipment; no collateral for loans up to ₹5 lakh with credit guarantee. [](https://sbi.co.in/web/agri-rural/agriculture-banking/allied-activities/agri-enterprise-loan)
- Digital Process: Online application with e-KYC and instant pre-approvals. [](https://www.ltfinance.com/blog/agri-implement-loans)
Agri Equipment Loan Interest Rates 2025
Compare rates from top lenders, starting at 7% p.a., based on credit score, equipment type, and loan amount.
| Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| SBI | 7.00%–9.00% | 0.5%–1% |
| L&T Finance | 10.00%–12.00% | Up to 1% |
| IndusInd Bank | 8.50%–11.00% | 0.5%–2% |
| Canara Bank | 8.00%–10.50% | Up to 1% |
Loan Comparison Tool
Our Loan Comparison Tool lets you compare rates, tenures, and fees from 250+ lenders in real-time. Enter your equipment cost, tenure, and credit score to find the best deal.
Compare NowWhy Choose LoanPao?
LoanPao offers tailored agri equipment loans with 250+ lenders, seamless digital applications, and 24/7 support. Our experts, certified by IRDAI, ensure transparency and compliance with RBI guidelines.
Low Rates
Competitive rates starting at 7% p.a.
Quick Approvals
Approvals within 24 hours with minimal paperwork.
Trusted Partners
Access 250+ banks and NBFCs.
Eligibility Criteria
Check if you qualify for a LoanPao agri equipment loan:
- Land Holding: Minimum 2–6 acres of irrigated land or equivalent dry land. [](https://canarabank.com/pages/farm-machinery-loans)[](https://www.paisabazaar.com/business-loan/tractor-loan/)
- Credit Score: 650+ for better rates; lower scores may qualify. [](https://www.paisabazaar.com/business-loan/tractor-loan/)
- Income: 3–5 years of Schedule C/F income proof. [](https://www.fbn.com/financing/equipment-loan)
- Age: 18–75 years. [](https://www.paisabazaar.com/business-loan/tractor-loan/)
- Tip: Co-applicants (e.g., family members) improve eligibility. [](https://www.tvscredit.com/loans/tractor-loans/farm-implement-loans/)
Application Process
Apply for your agri equipment loan in 5 easy steps:
- Submit online application on LoanPao’s platform.
- Provide KYC, income, and equipment details.
- Get pre-approved offers from lenders.
- Complete verification (e-KYC and equipment valuation).
- Receive funds in 24–48 hours.
EMI Calculator
Use our EMI Calculator to estimate monthly payments and total interest based on loan amount, tenure, and rate.
Calculate EMIMarket Insights
RBI’s PSL mandate and 2025 repo rate of 5.50% make agri equipment loans affordable, with mechanization demand rising 10–12% annually. Read more in our blog.
Testimonials
“LoanPao’s tractor loan at 7% p.a. was a game-changer. Got my equipment in 2 days!”
Ramesh Patel, Gujarat“The comparison tool saved me ₹50,000 on my harvester loan. Highly recommend!”
Manisha Rao, Punjab