Apply for a ZTBL Tractor Loan: Up to Rs 2.5 Million, 8 Years to Repay
ZTBL lends up to Rs 2.5 million for a new tractor, repaid over 8 years, with 10% from you and a 1.99% insurance premium. See the rules and how to apply.
Zarai Taraqiati Bank Limited (ZTBL) lends up to Rs 2.5 million per borrower to buy a new tractor, repayable in half-yearly instalments over 8 years. You pay 10 per cent of the loan yourself, and the tractor is registered in the names of both the bank and you. The insurance premium is 1.99 per cent of the loan.
The loan is also for new vehicles that carry farm produce to market. We read the tractor loan page on ZTBL's own website on 14 October 2026, and the terms below come from it. The page gives no markup percentage, so we quote none.
ZTBL finances new tractors and produce vehicles up to Rs 2.5 million
The loan limit is Rs 2.5 million per borrower or party. The bank pays the money by pay order or demand draft to the manufacturer or dealer. You never receive cash, so you must pick a tractor and a dealer first.
The page says the loan is for new tractors and for vehicles that move farm produce to market. It does not list brands or models. Ask the branch which dealers it deals with and whether your chosen model fits within Rs 2.5 million.
The markup is "the prevailing rate on development loans", and the cost of credit is as per the bank's rules. Ask for the exact rate in writing. Punjab also runs a separate scheme for tractors, covered in the Green Tractor scheme.
You need enough land of your own to justify the tractor
The main test on the page is land. The farmer must have enough self-owned and self-possessed agricultural land to justify a tractor. Self-owned means in your name. Self-possessed means you are the one actually holding and working it.
The page does not say how many acres count as enough. That decision sits with the bank, so bring your Fard Jamabandi, which is the land record, and be ready to explain how a tractor will be used. The papers list is a CNIC copy, the loan application, an agricultural passbook or Fard Jamabandi and two recent photographs.
For a sense of how common tractors are, the 2024 agricultural census counted nearly one million, as set out in the farm power figures.
Repayment runs eight years in half-yearly instalments
You repay over 8 years in half-yearly instalments. The first instalment starts six months after the first money is released. Your 10 per cent equity is adjusted toward the tractor price, not paid as a separate fee.
| Item | What ZTBL's page says |
|---|---|
| Loan limit | Rs 2.5 million per borrower or party |
| Your equity | 10 per cent of the loan, adjusted toward the price |
| Repayment | 8 years, half-yearly instalments |
| First instalment | 6 months after first disbursement |
| Insurance premium | 1.99 per cent of the loan, taxes included |
| Payment to seller | Pay order or demand draft to dealer |
Our example: on a Rs 2,000,000 loan the premium would be Rs 39,800 at 1.99 per cent. That sum is our arithmetic from the page. The page does not say whether the premium is charged once or yearly, so ask the branch.
The tractor is registered jointly and fully insured
ZTBL registers the tractor in the joint names of the bank and the borrower. It is comprehensively insured with an insurer rated "A". The premium of 1.99 per cent of the loan includes all taxes and levies, as the page states.
Joint registration means selling the tractor would need the bank's consent. Ask the branch to confirm. Keep your insurance valid for the full 8 years, because a lapse can put you in breach of the loan terms. The page also asks for collateral as required by the bank's policy.
Apply at a ZTBL branch and choose the tractor after approval talks
Visit your nearest ZTBL branch with the papers and a quote from the dealer. Ask what collateral is needed and what the markup rate is. The bank pays the dealer directly once the loan is approved and the documents are signed.
- Check that you have enough self-owned, self-possessed farm land.
- Choose a new tractor and get a written quote from the dealer.
- Collect the CNIC copy, passbook or Fard Jamabandi and two photographs.
- Submit the application at a ZTBL branch and ask for the markup in writing.
- Prepare your 10 per cent share and the collateral the bank asks for.
- Sign the papers, let the bank pay the dealer and register the tractor jointly.
The bank's helpline is 051-111-30-30-30, as shown on ZTBL's home page. Farmers in Punjab can also compare the Punjab farm machinery subsidy schemes before choosing a loan.
Common questions about the ZTBL tractor loan
How much can I borrow from ZTBL for a tractor?
Up to Rs 2.5 million per borrower or party, with 10 per cent from you.
Can I buy a used tractor with this loan?
The page says the loan is for new tractors. It does not mention used ones, so assume not unless the branch tells you otherwise.
How long is the repayment period?
Eight years, in half-yearly instalments, starting six months after the first disbursement.
Who is the tractor registered to?
It is registered jointly in the names of the bank and the borrower, and insured comprehensively.
What is the markup rate?
The prevailing rate on development loans applies. The page shows no percentage, so ask your branch for it in writing.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 14 October 2026. All terms come from ZTBL's own page, Loan for Tractor, and the helpline from the ZTBL home page. We did not apply for this loan and saw no markup percentage or land size rule. The bank can change terms at any time, so confirm them at a branch before you commit.
About the author
Senior Writer, Public Services and Technology
Shahid joined us in 2024 as an author. He is a senior contributor to Pakistan's leading technology websites. He writes detailed articles, mostly covering his expertise in the latest tech, mobiles, apps, gadgets, and step-by-step guides. His ideology is to help people understand the latest trends and explain complex methods through very easy-to-understand guides.
