Complete Guide To Sell A Financed Tractor In India

Are you planning to sell your financed tractor and do not know where to start?Selling a financed tractor can sometimes be too confusing for a farmer. However, in India, there are several websites and online platforms available for selling or buying a second-hand tractor. So, we have given a step-by-step guide to help you sell your financed tractor online in India.

Read more
Buy instant insurance for Goods, Passenger & Miscellaneous vehicles
Buy instant insurance
  • 15+ Insurers To Choose From

  • Instant Renewal For Expired Policy

  • 51 Lakh+ Vehicles Insured

Compare & Save upto 85%* on Commercial Vehicle Insurance
View free quotes cv right arrow white
Please wait. We Are Processing..
By clicking on ''View free quotes'' you agreed to our Privacy Policy and Terms of use

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Step by Step Guide to Sell a Financed Tractor in India 

Selling a financed tractor can be a critical decision in a business because it requires immense market knowledge so that you can sell it for a good price. A good understanding of the market and knowing the demand of a buyer will help you to make a deal successful. Below we have given a step-by-step guide for selling your financed tractor in India-

1. Calculation of Outstanding EMI

The first step for selling a financed tractor is a calculation of the balance on the loan. It is considered a primary step to finding the balance loan amount. You can do this with the help of online EMI calculators available on the internet. Then, you need to give some time to pay the bank foreclosure.

This will help you in knowing the actual value of your tractor in the market. At last, you will finalise the HP eliminated from the RC to sell the tractor when the advanced some is cleared. To do this, you can visit your lender bank and also get to know the foreclosure amount. 

2. Submission of Documents 

After clearing the balanced loan amount, you will issue the NOC (No Objection Certificate) and two duplicate copies of Form 34. Also, some other supporting documents required are as follow-

  • Copy of your PAN card, address proof, and passport size photographs (self-assisted)
  • Registration Certificate (RC) of the tractor
  • PUC of the tractor 
  • Commercial tractor insurance policy documents 

3. Finding the Right Platform 

As we have discussed already, there are so many websites available on the internet for selling your financed tractor.  We suggest you find a platform that not only sells it quickly but also advises you as per your need. Also, choose a company that has a verified buyer. For this, you can check their customers' reviews and feedback. Do not rush while choosing the right platform. 

4. Finding the Right Buyer 

This is one of the biggest and crucial steps in the process of finding the right buyer for the financed tractor. Once you find the right buyer, you will request them to pay the amount directly to the bank. Doing this will clear the outstanding balance of the loan against the tractor. 

In case the loan amount exceeds the price of the tractor, you will be paying the balance amount from your pocket. In this way, the financed tractor will be liberated from the money, and you will have to issue it from the bank. This is how the tractor's possession will be given to the new tractor owner. 

Remember, whenever you are making a deal with a buyer for a financed tractor, you must be clear about the outstanding amount for the loan against the tractor with the buyer.

5. Clear the Dues for Issuing the NOC 

When you pay all the due or the balance amount for the loan against tractor to the bank, then your bank issues a NOC. After that, you will have to take the NOC to your RTO for clearing the hypothecation from your Registration Certificate and transfer it in the name of a new owner. 

If your buyer also buys this financed tractor again on the loan, then your RTO will move the hypothecation from RC in the name of the buyer and the name of the bank from where a buyer will take the loan. 

You might be interested in

Tractor Insurance
Truck Insurance
Pick Up Van Insurance
School Bus Insurance
Goods Carrying Insurance
Auto-Rickshaw Insurance
E-rickshaw Insurance
Bus Insurance

Is Commercial Tractor Insurance Policy Mandatory for Selling Your Financed Tractor?

 

Yes, it is mandatory to have a commercial tractor insurance policy while selling your financed tractor. In case you do not have any type of commercial tractor insurance policy, you cannot sell your tractor. A commercial tractor insurance policy is a type of commercial vehicle insurance policy that gives financial protection to your tractor against several risks. 

Your commercial tractor insurance cost depends on the price of your tractor and other factors like- IDV, depreciation, add-on covers, location, engine capacity, etc. Therefore, it varies tractor by tractor. Moreover, the valuation of the tractor keeps on changing with the time duration and change in ownership. In case you sell your tractor, the ownership changes, and the amount of commercial tractor insurance policy will decrease. 

Conclusion 

We have discussed the guide explaining all the information regarding how to sell a financed tractor when you still have a loan. Also, we have mentioned all the mandatory documents like- a commercial tractor insurance policy, PUC, RC, etc., required for transferring the ownership. For making your financed tractor selling deal successful follow the above guide.

Commercial Vehicle insurance articles

Recent Articles
Popular Articles
Top 6 Auto Rickshaw Models In India

16 Sep 2022

Due to easy commutes, and low fares, the demand for...
Read more
5 Tips to Find the Bus Insurance Policy

16 Sep 2022

Buses are passenger-carrying heavy-duty commercial vehicles that...
Read more
Is Owning an Auto Rickshaw or Renting It a Profitable Business?

07 Sep 2022

Auto rickshaws have been the best mode of last-mile connectivity...
Read more
Difference Between a Truck and Pickup Truck

06 Sep 2022

In India, you must have seen different types of commercial...
Read more
Top 6 Bus Manufacturing Companies in India

27 Jul 2022

If you are planning to buy a private bus for setting up a transport...
Read more
Top 5 Electric Truck Models in India
In recent years, we have seen a sudden shift toward the demand for electric vehicles. Many heavy-duty vehicle...
Read more
Top 7 E Rickshaw Manufacturers in India
In the crowded streets, e-rickshaws powered by batteries are offering livelihoods to thousands of people. Moreover...
Read more
Best Tractor Companies in India
With a range of more than 20 brands, India is now emerging as a massive market for manufacturing various types of...
Read more
Top 6 Bus Manufacturing Companies in India
If you are planning to buy a private bus for setting up a transport business in India, you need to do some...
Read more
Top 7 Truck Companies in India
Trucks have always been the most direct and fastest way to transport goods & cargo from one place to another...
Read more