For farmers working in agriculture, one of the most essential pieces of equipment is a tractor. Various banks offer tractor loans to finance these purchases. Depending on the bank, loans are available for new or used tractors within defined limits.
How to Get a Tractor Loan from Ziraat Bank?
Ziraat Bank tractor loans are offered with government interest support and can reach up to 500,000 Turkish lira. With an annual total interest rate of 5% and a monthly rate of approximately 0.41% for domestically produced tractor brands, it is possible to obtain financing from Ziraat Bank. For foreign-made tractors, loans may be provided at an annual rate of about 7.5%, corresponding to a monthly rate near 0.62%. To benefit from the subsidized loans, applicants typically need a ÇKS (Farmer Registration System) certificate, though farmers without a ÇKS can still apply under motor vehicle loan conditions if they meet the bank’s requirements.
What Are the Conditions and Rates for Ziraat Bank Tractor Loans?
Ziraat Bank offers tractor loans in two main forms. Those without a ÇKS certificate can access financing through a motor vehicle loan with terms up to 48 months. Both loan types apply to new tractors and used tractors up to five years old, whether domestically or internationally manufactured. However, the government-subsidized rate specifically requires a valid ÇKS certificate.
Ziraat Bank tractor loan conditions are structured as follows: applicants can access subsidized credit up to 500,000 TRY based on the bank’s prevailing interest rate. Currently, the bank’s reference annual rate is about 10% (monthly approximately 0.83%). When purchasing a foreign-brand tractor under the subsidy scheme, a 25% support on the interest rate applies, reducing the annual rate from 10% to 7.5% (monthly about 0.62%). For domestically produced tractors, the support reaches 50%, lowering the annual rate to 5% (monthly around 0.41%).
If a loan is taken via the Motor Vehicle credit line without a ÇKS certificate, the bank may offer terms up to 48 months with a lending rate around 0.96 monthly. In this case, the used tractor must not be older than five years.
As with other loans, Ziraat Bank evaluates the borrower’s commercial history. A satisfactory credit score (KKB) is required for approval. In some cases, the bank may request at least two guarantors. The invoice for the purchased tractor, or registration details for a used tractor, will be required. The ÇKS document is also among the documents requested when applying for the subsidized loan.
Which Banks Provide Tractor Loans?
Besides Ziraat Bank, several other banks offer tractor loans. VakıfBank, for example, provides terms up to 60 months and may finance up to 75% of the invoice value, with flexible repayment schedules such as monthly, quarterly, semiannual, or annual installments. Şekerbank offers loans for new or used tractors up to five years old with 60-month terms and annual payment options; for used tractors under five years, financing can cover up to 60% of the sale price. Türkiye Ekonomi Bankası (TEB) has offered loans for new and up-to-five-year-old tractors with rates starting from about 1.99% and terms up to 48 months. Note that banks’ current tractor loan interest rates and specific conditions can change, so applicants should confirm the latest details with the chosen bank.