Tractor Subsidy, Bank Loan, Eligibility, Schemes, Process

Tractor Subsidy, Loan, Eligibility, Schemes, Application Process in India.

Today, let us discuss complete details of Tractor Subsidy, Bank Loans, and Governament schemes In India

Tractors Scope of Mechanization in India:

Introduction:

Tractors are the machinery, tools used for agricultural production. Using machines will increase the productivity of the farms, and even the quality of the product and reduce the hazards of operations. Even the government of India is also offering several schemes to distribute tractors and field machinery to farmers at subsidized prices to encourage their use in modern agricultural methods. Using tractors and machinery by farmers, the cultivated area has been doubled over the years.

Mechanized agriculture is the method of using agricultural machinery to mechanize agricultural works, greatly increasing farm worker productivity. The effective mechanization will increase production in two major ways: one is the timeliness of operation and a second one is the quality of education

In Indian farmers have the lowest earnings per capita because of the low yield per hectare they get from their holdings. One of the best means of increasing farm production is to mechanize it. Mechanization in India can be done at various levels. Mechanization can be done three different ways:

  • By using improved agricultural implements on small size holdings to be operated by bullocks.
  • Using small tractors, tractor-drawn machines, and power tillers on medium holdings to supplement existing sources.
  • Using large size tractors and machines on the remaining holdings to supplement animal power source.

Importance of Tractor in Indian Agriculture Sector:

In India, the tractor industry plays a key role in the development of agricultural production in India. The Indian tractor industry is very young when compared to world development. But, when comparing the current market trends, tractors are pride in India’s automobile industry. The developed countries like the U.S.A., U.S.S.R.  And only a few Western European countries, exceed our current production of tractors in India, but in terms of growth, India’s growth stands at the top, even with countries of a long history of tractor manufacturing.

The spectacular achievement mainly influences the maturity and dynamism of tractor manufacturers and the attractive policies adopted by the government to enable it to effectively meet the demand. The tractor industry in India has amazing progress in terms of production and capacity as well as indigenization of technology.

Importance of Tractor In Agriculture.
Importance of Tractor In Agriculture.

Bank Loans And Subsidies for Tractors in India:

Tractor subsidy in Telangana and Loans:

Telangana Yantra Laxmi Scheme: this scheme comes under Farm Mechanization Scheme, this scheme offers 50% subsidy to the farmers for purchasing the tractors and other farm equipment along with a loan for reaming 50%. This scheme has been implemented in association with the center for the Mechanization of Agriculture Department.

Read: Livestock Insurance Scheme, Claim Procedure.

Benefits Of Telangana Yantra Lakshmi Scheme

  • This scheme offers 50% subsidy on the purchase of a tractor for individual farmers and co-operative societies
  • And for the rest of the amount, loans will also be from the nationalized banks.
  • Apart from this, the below-mentioned matching equipment including trailer is included in the subsidy, Rotators, Mini Tractors, Power Weeders, and Transplanters
  • The state government will provide 50% of the tractor cost and for a remaining money farmers can apply for the loan from the nationalized banks
  • And for SC/ST farmers, the government will provide a 100 % subsidy for the purchase of a tractor along with trolleys and matching equipment’s.

New Tractor Scheme from SBI in Telangana: SBI offers Agricultural term loans for the purchase of new tractors, accessories, and implements.

  • Eligibility: Any small and marginal farmers, institution or organization are eligible for this loan, who will have enough and constant income, either from own farm activity or custom hiring incomes from the tractor.
  • Insurance: The tractor and accessories purchased with bank finance must be comprehensively insured for the full value.
  • Collateral Security: the farmer should do Mortgage of land, property valued equivalent of 100% of the loan value.
  • Interest: 12% p.a.

Subsidies and Loans for Tractors in Karnataka:

Farm Mechanization- SBM Agri Farm Scheme

The Mechanization of farming has been considered as one of the important inputs in farming, to complete the farm operations on time and to increase production and reduce the drudgery of human labor. With the rapid advancement in agriculture, there has been an increased use of farm mechanization equipment like Tractors and Power Tillers which help us tide over the labour problem for Agriculture We have been assisting the farmers for purchase of Reputed and well-established Models of Tractors / Power tillers.

Norms for the financing of Tractors

The borrower should possess a minimum of 4 acres of wetland or 6 acres of dry land to ensure the viability of the medium-term loan to be extended for the purpose. And finance assistance for tractors to farmers with lesser land holdings than stipulated can also be considered on a case to case basis provided the applicant is having sufficient income from other sources to service the debt.

Margin Money: Down payment for the scheme of farm mechanization scheme on new tractors will be not less than 10% of the investment cost in case of tractors and implements

Interest Rate: the Interest rate is the same as the Agricultural Term loans from time to time.

Repayment Period: Maximum 9 years.

Karnataka Government Subsidies for Tractors:

Karnataka Govt introduced schemes to give tractors on rent through manufacturer tie-ups. Karnataka government will soon offer tractor and other farm equipment on a rental basis to farmers across the state through a collaboration with automobile makers, including VST Tillers, John Deere, and Mahindra, reports Business Standard. Under the “Uber for agricultural services” scheme, the state is planning to invest around Rs 175 crore as subsidy for renting out farming equipment’s, bringing down the cost of the use of this equipment to farmers by nearly a third, added the report.

According to the government, many farmers own very small patches of land that are too small to justify the investment on mechanized equipment. Therefore, under the new model, the state would pay 75% of capital costs, while equipment makers earn money by renting it to farmers over a three-year period. Farmers will be able to procure tractors, tillers, harvesters, etc. on an hourly and daily basis, once the scheme is launched.

Custom Hire Centers: The Karnataka state also claims to have tied up with two non-profit entities by investing Rs 87.5 crore to set up about 175 Custom Hire Service Centers (CHSCs). It plans to set up a total of 350 centers in total once the scheme is rolled out fully. The manufacturers will also stock farming equipment from other manufacturers, apart from its own equipment.

Farm Mechanization Scheme – By Government of Karnataka:

Farm Mechanization Scheme is a part of Rashtriya Krishi Vikas Yojana (RKVY) and is implemented in Mission mode. Under this scheme, 50 percent of the cost is provided as a subsidy for buying farm implements whose cost is less than Rs. 5.00 lakhs and 40 percent subsidy if the cost is more. However, a 90 percent subsidy is provided to the Scheduled Caste/ Scheduled Tribe farmers. 

Read: Dairy Farming In Karnataka, Loans, Subsidies, Schemes.

Tractors Subsidies and Loans in Tamil Nadu: 

Agricultural Mechanization Program- Tamil Nadu is providing subsidy assistance to the farmers for the purchase of Agricultural Machinery and Implements, Power Tiller, Paddy Transplanter, Rotavator, Seed Drill, Zero Till Seed cum Fertilizer Drill, Seed cum Fertilizer Drill, Bund Former which is Tractor Operated and Power Tiller Operated, Straw Baler which is Tractor Operated, Power Weeder for Garden land and Wetland, Brush Cutter which is tractor operated, and Power Sprayer.

  • Benefits: the major benefits of this scheme; Providing subsidy support to the farmers for purchasing the Agricultural Machinery and Implements with a 40% subsidy or the eligible subsidy prescribed by the Government, whichever is less, for another beneficiary farmers and 50% subsidy or the eligible subsidy prescribed by the Government, and is less for the Scheduled Caste, Scheduled Tribe, Small, Marginal and Women farmers.
  • Farmers have options to select, make and model of agricultural machinery and implements as per their choice from the agricultural machinery manufacturing firms approved and enrolled by the Agricultural Engineering Department.
  • Eligibility: All the small and marginal farmers are eligible, and the process will be on a first come, first served basis and payment in total to be made up front.
  • Time-Limit for enrollment: Program will be implemented within the financial year.

Tractors subsidy in Tamilnadu: In Tamil Nadu, the government has approved an Rs. 24.75 lakh as a subsidy for purchasing tractors

The Agriculture Engineering Department has sanctioned Rs. 30.75 lakh as subsidy to farmers of the district for purchasing tractors. This gives good financial support to the farmers as they were facing acute shortage of labors.

A subsidy of Rs. 1 lakh will be given to each farmer for purchasing six tractors with 20 horsepower capacity would be provided to farmers who come under the Adi Dravidar category.

In purchasing 14 farm tractors up to 70 horsepower capacity, a subsidy of Rs. 1.25 lakh would be approved to 14 beneficiaries who belongs to an Adi Dravidar community.

And for the general category farmers, a subsidy of Rs. 1.25 lakh would be provided to them.

Tractor Loans from TMB:

TMB offers Tractor scheme that helps the rural and semi-urban community to avail of loans under priority agri financing to purchase a tractor. The criteria and conditions for availing loan are liberal are relaxed to help extend the loan to the poor people at a very low-interest rate and with low processing charges.

Eligibility: All the small, marginal farmers, Individual / Joint, Sole Proprietary Concerns, Partnership Firms, Trusts, Societies, Limited Companies, and all legal entities.

Loan Quantum: Up to Rs. 6 Lakhs.

Margin: 15%.

Repayment: Repayment period will be fixed based on the cropping pattern/harvesting season and income generations up to a maximum of 9 years. 

Loans from Primary Cooperative Agriculture and Rural Development Bank – For Tractor Purchase: Tractor Purchase Maximum amount of loan: 90% of the cost of the tractor Rate of interest (Subject to change): 11% to 12.25%. 

Read: Dairy Farming Loan Subsidy, Schemes In Tamil Nadu.

Tractor Subsidies and Loans in Kerala:

Farm Mechanization System (FMS) developed by National Informatics Centre (NIC) Kerala is a new boost in implementing ICT in the department of Agriculture Kerala. The role-based software will bring transparency in the distribution process of government subsidy for farm machinery to the farmers through e-payment.

Salient Features

  • Online application for the purchase of approved implements.
  • Scheme-wise Financial and Physical target distribution to State, District, Block and Panchayath levels.
  • SMS and E-mail alert to various stakeholders.
  • Verification of genuineness of the farmer by the officials at Panchayath, block and district levels.
  • Approval and distribution of subsidy through E-payment.
  • Tracking of application and status alert at various levels.
  • Transparency at all levels.
  • Online Grievance monitoring.
  • Generation various MIS reports for decision making.

Tractor Subsidy In Kerala:

In India, there has been a steady shift from animal power to electro-mechanical sources of power in Kerala, although the rate of change has been slower than that of the leading agricultural States. The availability of power is estimated at 0.69 kW/ha. And in this about 90% comes from tractors, engines, and motors used in agriculture. Tractor type combines harvesters are in used in Kerala. There is a great scope for mechanization of spices and plantation crops in Kerala. In Kerala, there are very few agricultural implement manufacturers and so they need government to motivate few entrepreneurs to start agricultural implement manufacturing in the Kerala State.

Mode of Assistance: For Tractor – @ 25% of the cost limited to Rs.45, 000/- tractors up to 40 HP.

Agri Term Loans – From Kerala Gramin Bank: Offer loans to the purchase of farm machinery such as a tractor, power Tiller, Other Farm machinery.

Eligibility:

  • All Farmers – Individual/ Joint Borrowers who are own cultivators/agriculture entrepreneurs
  • The Borrower should have knowledge/experience in the activity and should be capable of carrying out the activity successfully

Limit: Any amount as per project / Unit cost as per scheme norms.

Margin: 5 – 20 % of project cost depending upon schemes.

Repayment:

  • The Repayment period and repayment holiday vary with gestation period & income generation from the activity undertaken.
  • In 5 to 10 Years in monthly/Half yearly/ Yearly installments.

Subsidies for Tractors in Andhra Pradesh: 

Distribution of Tractors under Rythu Radham, 2018-19:

The government of Andhra Pradesh started distribution of Tractors under Rythu Radham, 2018-19 under the of Rythu Radham Scheme, 2018-19. The approved guidelines are listed below to this scheme

  • As per the information on subsidy allowed by the Department for tractors is made available through Mandal Agricultural Officer / Assistant Director of Agriculture / Joint Director of Agriculture in the Agriculture Department of A.P.
  • Subsidy allowed for 4 WD tractor, 35 HP and above is Rs.2, 00,000/(Rupees Two Lakhs Only) and for 2 WD tractor, 35 HP and above is Rs.1, 50,000/-(Rupees One Lakh Fifty Thousand Only).

The Mandal Agricultural Officer must prioritize based on the following points:

  • The farmers who have not obtained tractors under the subsidy scheme earlier should only be given.
  • The farmer should own at least one acre of Land In case of SC, ST farmers and two acres in respect of other farmers to get eligible for applying under this scheme.
  • The applicant should not possess/own any tractor on his name.
  • Existing norms of allocation to SC, ST beneficiaries shall be followed.
  • Mandal Agricultural Officer after scrutinizing the application along with necessary documents, i.e., Pattadar Pass Book and Aadhar Card for tractors should forward the application to Assistant Director of Agriculture duly signing on it.

Tractor Loan from ICICI Bank: ICICI bank offers easy and hassle-free tractor loans for first-time buyers/tractor owners having agricultural land.

You can easily apply at your nearest ICICI Branch or contact the 24-hour Customer Care.

Benefits:

  • Easy loan procedure
  • Quick processing
  • Non- mortgage loan available
  • Low processing fee
  • Low-Interest Rate

Repayment period: Up to  5 years.

Flexible repayment options: ICICI offers a Fixed Rate of Interest throughout the tenure.

Read: Fish Farming In Andhra Pradesh, Loans, Subsidies.

Subsidies and Loans for Tractors in Maharashtra:

Farm Mechanization Scheme: The government of Maharashtra scheme for farmers to encourage the use of modern methods and machines for the day to day agricultural activities.

Main objectives of the scheme:

  • To encourage farmers to use modern methods and machines.
  • Provides subsidies to purchase modern agricultural equipment’s and tractors.
  • To increase farmer’s income.
  • Helps the farmers in simplifying day to day agricultural activities.
  • Improves the living standard of the farmers.

Eligibility:

  • All the farmers of Maharashtra.
  • Small and Marginal farmers.
  • SC/ST farmers of the state.
  • Self-help farmer groups.

Benefits:

  • Small, Marginal and SC&ST farmers: 35% subsidy on Tractor and 50% subsidy on purchase of other implements.
  • Other farmers 25% of Tractors cost and 40% subsidy on purchase of other equipment’s.
  • Banks can also apply for the scheme in order to provide the loan to the farmers. 

Farm Mechanization Scheme from Bank of Maharashtra:

Farm Mechanization

Type of Facility Term Loan (TL)

Purpose:

  • Purchase of Tractors/Power tillers.
  • Purchase of Combine Harvesters.
  • Purchase of Threshers & other farm implements.
  • Purchase of vehicle for transportation for farm usage.

Eligibility: All farmers- Individual / Joint landholders

Land Holding Criteria

  • For Tractor up to 35 HP: the farmer should have a minimum of 4 acres of perennially irrigated land.
  • For Tractor above 35 HP: the farmer should have a minimum of 6 acres of perennially irrigated land (Corresponding acreage of dry land or seasonally irrigated land).

Amount: As per cost of machinery along with implements and accessories.

Margin For tractor / Power tiller unit-

  • Loan Up to Rs 1.00 lakh: No Margin.
  • For the Loan Over Rs 1.00 lakh: 15 % -25% of the investment cost of the unit.

Repayment Period: 5 to 9 years, depending upon the purpose of the loan.

Read: Dairy Farming In Maharashtra, Loans, Subsidies, Schemes.

Tractor subsidy in Madhya Pradesh:

MP Government Provides Subsidy on Small Tractors. The Madhya Pradesh Government provides a subsidy for the small tractors purchase to help farmers in their agriculture.

The scheme is approved under Centrally Sponsored Macro-Management Scheme in which sharing pattern has done between the Union Government and State Government is in the ratio of 90:10.

As per the subsidy scheme, all categories of farmers are eligible for the subsidy for purchasing the small tractors.

The tractors are up to 35 HP, up to Rs.30, 000/- subject to a maximum of 25% of the cost.

Since the availability of tractors in Madhya Pradesh is comparatively low, farmers are coming forward in large number to avail the benefit of this program.

SBI – Mahindra Vishvas, SBI TAFE Nayaroop.

Purpose: Loans are approved for the purchase of second-hand tractors refurbished by Mahindra & Mahindra and Tractors & Farm Equipment’s Ltd. The second tractors should up to 7 years old

Eligibility: Medium and Marginal farmer or a group of farmers not exceeding three in number (as co-borrowers) owning minimum 3 acres irrigated agricultural land.

Loan amount: Up to 85% of the cost. The loan amount is based on the price fixed by the company for each tractor after refurbishing. The maximum limit of the loan will be Rs.2.50 lakh including the cost of implements. The implements purchased shall be new.

Security

  • Loan up to Rs 1,00,000/ Hypothecation of tractor and accessories.
  • Above Rs.1, 00,000/- Hypothecation of tractor and accessories;  Mortgage of the land of the farmer or any other tangible Security to cover at least 50% of the loan amount or suitable third-party guarantee.

How to repay the loan?

The loan amount including interest can be repayable in half-yearly/yearly installments coinciding with the harvest of crops grown. The loan repayment amount should be completed before the expiry of 9 years from the date of original purchase of the tractor inclusive of a maximum gestation period of one year.

How to apply for this loan?

You just need to contact the nearest branch or talk to the marketing officers visiting your village.

Tractor subsidy in Uttar Pradesh

Krishi Yantra: Scheme for purchase of Tractor

Tractor: The scheme offers financial support of, 25% of the cost limited to Rs.45, 000/- tractors up to 40 HP.

  • Eligibility: All the small/Marginal farmers, joint co-borrower, HUF proprietorship partnership (P) Ltd. Companies, Cooperative Societies, Trusts are eligible under the scheme, with minimum 2.5 acres of agricultural land with a permanent source of Irrigation for a minimum in two crops in a year and borrowers are non-defaulter of any financial institution.

It can be considered by considering the asset utilization for a minimum of 1000 hours of productive work per year on own farm and custom hiring.

  • Amount of Loan: 90% on the price of Tractor & implements.
  • Security: Hypothecation of tractor along with implements. Mortgage of the farming land to secure the advance adequately or Third party guarantee acceptable to the bank.
  • Margin: 10% of the total price of the tractor and implements.
  • The rate of Interest:
  1. For loans up to 2.0 lakh – BR+2.25%
  2. For loans up to Rs. 2.00 lakh to 5.00 lakh – BR+3.00%
  3. For loans  Above 5.00 lakh – BR+3.50%
  • Repayment: The entire loan should be repaid in half-yearly installments 5 – 9 years. Maturity period: minimum 6 months & a maximum of 18 months. 

Tractor Loan from Prathama Bank:

They provide a term loan to purchase new tractors of ISI marked with standard accessories

Presently, the Bank has tied up arrangements with the 3 biggest manufacturers of Tractors namely – Mahindra. Swaraj and Sonalika

Eligibility: Farmers residing in the operational area of the branch and holding at least 4.00 acre irrigated lands in their names subject to availability of at least 1000 hours work to the tractors

Quantum of Loan: As per the quotation of the machinery.

 Margin:

  • 15 %
  • Nil – in case of Tie-up arrangements
  • 10 % – in case of accessories

Repayment: The loan is to be repaid in 9 years in half yearly or annual installments as per the cropping pattern adopted by the farmer.

Security:

  • Simple Registered Mortgage or charge creation over agricultural land;
  • Coobligants acceptable to the Bank, in tie-up arrangements, one coobligant may be accepted.

Tractor Subsidies in Rajasthan:

Distribution of improved Agricultural Implements on subsidy to the farmers

Eligibility: All categories of farmers are eligible. Priority will be given to SC/ST, Women, BPL, Marginal /Small/Semi medium category farmers.

Supporting Documents required for application submission:

  • Application in prescribed format
  • Purchase Bill of Authorized Dealer
  • A Copy of Jamabandi in case of Power/Tractor driven Implements
  • Photo Copy of Tractor registration in case of Tractor driven Implements
  • Photo Copy of the first page of Passbook of Bank Account 

Subsidy: For Power operated/Tractor drawn selected Implements, the subsidy will be 50% of the cost maximum up to Rs.15000/-. 

Tractors Loan by AU Bank:

This bank provides loans for the purchase of new and used tractors. They aid you with refinancing as well. The bank carefully selects the manufacturers and models for each market, based on the soil conditions of your respective market and advises the farmers about the products best suited for your operations. The bank is tied up with several manufacturers and dealers enables us to offer the optimal solutions to you every time. The AU bank also has a panel of Values and RTO agents to expedite the purchase of pre-owned tractors or fulfill refinance needs of the customers. They lead you through the whole process, including sourcing, field investigation, and documentation, which enables us to provide fast approvals and disbursement.

Eligibility

  • All the small and marginal farmers who can deploy tractor for agricultural use or commercial use.
  • The prior credit history should be satisfactory.
  • The farmer should fulfill our credit norms to avail a Tractor Loan.

How to apply?

  • To avail the loan first fill the online application form and our representative will get in touch with you.
  • You can also apply for a loan by calling our customer call center @ 1800 1200 1200. We have 24/7 customer support.
  • You contact us through email, customercare@aubank.in or visit our branches.
  • And the existing customers may also get in touch with their Relationship Managers/Personal Bankers to know more. 

Tractor Subsidies in Haryana:

Farm Mechanization Scheme: The government of a Haryana scheme for farmers to encourage the use of modern methods and machines for the day to day agricultural activities.

Main objectives of the scheme:

  • To encourage farmers to use modern methods and machines.
  • Provides subsidies to purchase modern agricultural equipment’s and tractors.
  • To increase farmer’s income.
  • Helps the farmers in simplifying day to day agricultural activities.

Improves the living standard of the farmers. 

Eligibility:

  • All the farmers of Maharashtra.
  • Small and Marginal farmers.
  • SC/ST farmers of the state.
  • Self-help farmer groups.

Benefits:

  • Small, Marginal and SC&ST farmers: 35% subsidy on Tractor and 50% subsidy on purchase of other implements.
  • Other farmers 25% on Tractors and 40% subsidy on purchase of other equipment’s.
  • Banks can also apply for the scheme in order to provide the loan to the farmers. 

Scheme For Farm Mechanization: Sarva Haryana Bank

Purpose: Purchase of new tractors/tillers and second-hand tractors with matching implements. And repair/renovation of tractors.

Eligibility: Farmers should own and cultivate a minimum required perennially irrigated land as per Bank’s guidelines.

Quantum of Loan: Need-based loan net of margin shall be provided for the purchase of farm machinery/equipment.

Security: Up to Rs.1 lakh; Hypothecation of crops/assets created out of bank loan.

Repayment: 5 to 9 years. 

Tractor Subsidy in Assam:

Distribution of Tractor Unit under CMSGUY (Chief Minister SamagraGramyaUnnayan Yojana) Scheme will provide 70% (Seventy percent) subsidy to the selected groups on procurement prices of tractor unit including implements subject to a maximum of Rs. 5.5 Lakhs.

Eligibility Criteria: Any group of 8-10 group of small and marginal farmers, who are the actual adult farmers of the same village with minimum of 2 acres of farming land. The group of farmers should have a common bank account and will apply jointly with the signatures of each member on the application form preferably along with particulars of land and crops cultivated. The applicant group of farmers, should not have more than one member from one family.

Tractor Unit: Each tractor unit should get one tractor (35 to 55 HP) with standard accessories and Matching Implements (In order to meet the requirement of different farmers and crops, it is compulsory to purchase matching implements).

Features of Schemes:                       

  • 70% of the total price of the tractors will be given as subsidy which is limited to 5.5 lakh Rupees.
  • And in that, 20% of the total price will be taken as a bank loan.
  • 10% of the total price of the tractor will be a beneficiary’s share.
  • The Groups of farmers should be 8 to 10 members.
  • The group has the option to choose the model of tractor.
  • The group can provide ta ractor to the farmers on a rental basis
  • The group is selected by a District Level Committee (DLC)

SBI Farm Mechanization, Scheme: 

Purpose: SBI offers agricultural term loans for the purchase of new tractors, accessories and other implements.

Eligibility: Any individual small/marginal farmers or group of individuals, i.e., JLGs/SHGs, institution or organization are eligible for finance, which will have enough and regular income from the farm or the hiring incomes from the tractor proposed to be purchased and its accessories. The borrower should possess 2-acre farmland.

Margin: Minimum of 15%.

Interest: 12% p.a.

Repayment: The loan is repayable in monthly installments in 5 years, including the grace period of 1 month.

Tractor Subsidy in Odisha:

The Government of Odisha is offering tractor loans for the farmers.  

Capital Investment And Farm Mechanisation Scheme by Odisha:

Subsidies for Tractor & Power Tiller:

  • Tractor Up To 40 Hp: 50% Of The Tractors Cost Limited To Rs. 90,000.
  • Power Tiller 8 Bhp & Above: 50% Of The Power Tiller Cost Limited To Rs. 75,000
  • Power Tiller Less Than 8 Bhp: 50% Of The Power Tiller Cost Limited To Rs. 40,000
  • Power Tiller Less Than 8 Bhp: 50% Of The Power Tiller Cost Limited To Rs. 40,000

Eligibility: All the small/marginal farmers with minimum farming land are eligible for this scheme.

Ogb Agri-transport Vehicles – Odisha Gramya Bank:

The main objective of this scheme is to provide hassle-free credit for the purchase of Tractor / other transport Vehicle for the purpose of cultivation /transportation of agricultural produces.

Eligibility: All the Individuals  having special aptitude in the transport business and also the small/marginal farmers having an interest in farm mechanization will be eligible to be financed under the scheme

Purpose: This scheme main motive is to Purchase of Tractor and other Transport vehicles, including three-wheelers for the purpose of cultivation, carriage of agricultural produces and for providing transport facility to the farmhouses

 Amount: Maximum 85% of the cost of the tractors and other implements.

 Margin: 15% of the cost price of the tractors.

Tractors Subsidy in Gujarat:

Government Tractors Subsidy Schemes in Gujarat: Procure appropriate machinery/ equipment as per land holding size and crop. The purchased tractors& equipment can be used by Custom Hiring/sharing by groups of farmers.

Features of the scheme:

  • Training will be provided for the eligible persons, on the proper use of Farm Machinery and its routine maintenance and servicing through Farm Machinery Training &Testing Institutes (FMTTIs), KVKs & State.
  • For Tractor (up to 40 PTO HP) – a subsidy of Rs.45, 000 or 25% of cost of tractors, for tractors (more than 40 PTO HP) a subsidy of Rs.60, 000 or 25% of cost, whichever is less 60 PTO HP)
  • Tractors (up to 20 HP) – For SC, ST, Small & Marginal Farmers and Women – 35% / 1.00 Lakh. For other Beneficiaries – 25% / 75,000
  • Tractors (20 to 40 HP) -For SC/ST, small & marginal farmers, 35%of cost or 1.25 lakh, and for other Beneficiaries-25% or 1.00 lakh, whichever is less.
  • Tractors (Above 20 to 70 PTO HP) For SC, ST, Small & Marginal Farmers and Women – 35% / 1.25 Lakh For other Beneficiaries – 25% / 1.00 Lakh.
  • Power Tiller/mini tractor40% of the cost of the tractors or 45,000 for a general farmer, for SC, ST farmer 50% or Rs. 60,000, whichever is less.

Scheme for financing Tractors- By Dena Gujrat Gramin Bank:

For a farmer who needs a tractor for Agriculture purpose are facilitated by a tie-up with manufacturers/company of various tractors with the cheapest rate and free service facility for a tractor.

Tractor Financing by Bank of Baroda:

This bank offers Finance for Tractors & Heavy Agriculture Machinery.

Main Purpose of Scheme:

  • Purchase of new tractor
  • Tractor-drawn implements
  • Power tiller and other agricultural machines etc.

Eligibility:

  • Small and marginal, literate and illiterate farmers whose main occupation is a cultivation of crops as the owner of the land, permanent tenants or leaseholders (for reasonably long periods) and who utilize the tractor/ machinery to the minimum extent of 50% on their own landholding.
  • They should possess perennially irrigated land of a minimum of 4 acres (tractors to the farmer with land holding below 6 acres of irrigated land is considered for tractors with horsepower up to 35 HP).
  • They should cultivate high-value commercial crops such as sugarcane, grapes, bananas & vegetables.

Margin: Min10% of the Cost of the tractors& Implements.

Repayment Period: For tractors, the repayment period is 9 years: for Power Tillers- 7 years (Depends upon the repaying capacity on half-yearly and annual basis based on surplus generation from the crop and landholding of farmers).

Tractor Subsidy in Punjab:

In Punjab, the government offers a scheme to lease finance facility to purchase a tractor under a green tractor scheme. 

Eligibility:

  • All the small and marginal farmers who have been declared successful through computerized balloting.
  • The applicants should be a resident, owner/self-cultivator of minimum 05 Acres of farming land.
  • Existing BOP borrowers having land under the bank’s charge are also eligible for this scheme.
  • The farmers should not be a defaulter of any Financial Institution.

Price of Tractor: The price of Green Tractor should be less by RS: 200,000/- from the market price of the tractor. A Subsidy of RS: 200,000/- will be provided by the Govt. of Punjab to Tractor Manufacturers directly.

Punjab Government Alliance with Tractor Manufactures:

The government of Punjab has made an alliance with M/s Millat Tractors (Pvt.) Ltd. and Al-Ghazi Tractors Limited as Local Manufacturers of tractor for this scheme.

Repayment: the repayment period is10 equal half yearly installments. 

Kisan Dost Tractor Finance Schemes: The main motive of the scheme is to provide of a financial facility to the farmers and non-farmers (those who provide tractors to farmers on a rental basis for various tractor related operations), for the purchase of Tractors.

Eligibility:  

  • The farmers should have an agriculture Land minimum 5 acres and maximum 50 acres.
  • The non-farmer persons should be related to the business of providing services for tractor related farming practices to the farmers on a rental basis.

Amount: Maximum subsidy limit is Rs. 750,000/-.

Repayment: the repayment period is10 equal half yearly installments and the loan should be paid within five years. 

Second-hand Tractors Leasing Finance Scheme:

The main purpose of the scheme is leasing out used/second-hand tractors for the farmers. The Tractor would be free from debts and should not be more than three years old in a good working condition.

Eligibility: the farmer should have an agriculture land minimum of 5 acres and a maximum of 50 acres.

Amount: Maximum subsidy limit is Rs.400, 000/-

Repayment: the loan can be paid in min two to a maximum six half-yearly installments. (Minimum two and maximum six half yearly installments).

Tractor loans by Punjab National Bank:

PNB offer loans for the purchase of four wheelers, three wheelers (carriers) and Two Wheelers (LMVs) of all types, for agriculturists for managing and supervising their farming activities and other farm-related marketing activities etc.

This scheme offers:

  • One-time Insurance cost
  • One-time Registration cost

Eligibility: All new and existing farmers who are engaged in agriculture and/ or allied activities and should have repayment capacity assessed by the branch based on income from agriculture and/ or allied activities.

  • For Two-Wheeler: the Individual farmers should have engaged in direct agriculture and/

or allied agriculture activity.

  • For Three-Wheeler (carrier) and Four-Wheeler (LMV): All the farmers, owning and cultivating farm lands of more than 1 acre of agricultural land in their names are eligible to apply under the scheme.
  • This scheme is applicable for farmers engaged in Dairy farming, Poultry farming,

This scheme offers

  • Loans for Scooters, Motorcycles, etc.: based on the Maximum Rs 1, 00, 000/-.
  • Loans for Three- Wheeler (carriers): based on the maximum to a limit of Rs. 3.00 Lakhs.
  • Loans for Four- Wheeler (LMVs): based on the Maximum up to a limit of Rs. 15.00 Lakhs. 

Tractors Subsidy in West Bengal

The West Bengal Government is offering, Tractor loans at 25 % of the cost of tractors limited to Rs.45, 000/- tractors up to 40 HP

And also offers loans for power-driven equipment (Tractor/Power Tiller operated) Intended inclusion of all tractors and power tiller driven conventional equipment/implement at 25 % of the cost of the machinery, limited to Rs.10000/- for essential tractor driven implements viz. MB/Disc Plough, harrow, cultivator, seed cum fertilizer drill. And 25 % of the cost, limited to Rs.10000/- for a set of power-driven implements i.e. harrow cultivator and seed drill.

For Power operated protection equipment, the subsidy offered is 25% of the cost limited to Rs. 2000/-.

For tractor mounted protection equipment, the subsidy offered is @ 25% of the cost limited to Rs. 4000/-.

Eligibility: All the small/marginal farmers are eligible for this loan.

HDFC Loans for Tractors in West Bengal:

HDFC offers higher loan amount for the farmers, they can get up to 90% finance on the favorite tractor through this loan.

Easy Repayment options: HDFC provides competitive rates of interest, and a flexible tenure of 12 to 84 months, you can use post-dated cheques for a repay the loan.

Tractor Plus Protection Scheme:

In this scheme, you can get financing for the first year or combined finance on the first, second and third year along with motor insurance premium with Credit Shield. This Credit Shield covers for accidental death or permanent total disability of the customer along with an amount equivalent to the outstanding in the loan account.

Loan Without Collateral: HDFC Bank’s Tractor Loan for the farmer can be availed of with or without additional collateral.

Service Across Sectors: the tractor loans from HDFC are not restricted only to farmers. Non-farmers are also eligible to avail of a loan.

Benefits of HDFC Tractor Loans:

You can enjoy triple benefits of Tractor Loan from HDFC Bank:-

  • Faster loan access–HDFC loan sanction and disbursal process is one of the quickest very simple documentation and doorstep services.
  • HDFC offers competitive pricing.
  • HDFC loan rates and charges are very attractive.

Tractor Subsidy in Himachal Pradesh:

The scope of Farm Mechanization in Himachal Pradesh:

Himachal Pradesh is a hilly plakhe, which provides the best environment for cultivating almost all types of crops and horticultural crops due to widely varying micro-agro-climatic regions of the state.

And But the farm mechanization program in the state is very poor in terms of mechanical power, efficient implements, land reclamation, water management, renewable energy, and post-harvest activities.

The mechanization process hard to implement due to the stepped, small and irregular fields, undulating topography, and due to lack of adequate agricultural engineers and skilled manpower, very le facilities of repair, maintenance and manufacture of implements/machinery and high-cost solar gadgets.

Despite these limitations and constraints, there is a good scope for increasing productivity of land and farmers for creating small water resources for increasing irrigated areas, land development.

Sub Mission on Agricultural Mechanization (SMAM): There is a strong relationship between farm power availability & Agriculture productivity. So, the sub Mission on Agricultural Mechanization will focus on farm mechanization. The submission will mainly work on the needs of the small and marginal farmers through institutional arrangements, such as custom hiring, mechanization of selected villages, subsidy for procurement of machines &equipment’s, etc.

Pattern of Assistance

For the tractor, they provide 25% of the cost limited to Rs.45, 000/- tractors up to 40 HP.

For the Power-driven equipment’s (Tractor/Power Tiller operated) Intended inclusion of all tractors and power tiller driven conventional equipment/implement.

  • They provide subsidy 25 % on the cost of tractors, limited to Rs.10000/- for essential tractor driven implements viz. MB/Disc Plough, harrow, cultivator, seed cum fertilizer drill.
  • They provide subsidy 25 % on the cost of power driller, 25 % of the cost, limited to Rs.10000/- for a set of power-driven implements i.e. harrow cultivator and seed drill.

Tractor Subsidy in Arunachal Pradesh:

Arunachal Pradesh is a state with a massive 94% rural population, and it is the largest state in North-East India. So, the economy of the state is mainly based on agriculture. The Jhum cultivation and Terrace farming are the major practices that the farmers employ to uplift agriculture in Arunachal Pradesh. Most of the agricultural operations are performed by using animate power sources.

The subsidies for Tractor (40 HP and above):

Maximum Loan Limit: Rs.1, 20000/- per Tractor for an individual farmer.

Tractor Loans by ICICI Bank:

Tractor Loan: ICICI bank offers easy and hassle-free tractor loans for the farmers and tractor owners having own agricultural land. In this scheme, you can apply at your nearest ICICI Branch or call us at our 24-hour Customer Care. 

Benefits

  • Easy loan procedure.
  • Quick processing.
  • Repayment period up to 5 years.
  • Flexible repayment options.
  • Fixed Rate of Interest throughout the tenure.
  • Non- mortgage loan available.
  • Low processing fee.
  • Low-Interest Rate.

Tractor Subsidy in Meghalaya:

The scope of Farm Mechanization: 

Most of the agricultural operations are performed by using animate power sources. Traditional tool and equipment are common in the field of agriculture, despite of vast scope of improved gender friendly hand tools for hilly region. The state economy is based on agriculture. Jhum cultivation and Terrace farming are the major patterns that the farmers need uplift agriculture in Meghalaya. In Jhum cultivation, they need only hand tools like a spade, khurpi, sickle, dibbler, daw, grass slakher etc. Lands are prepared for farming by cutting down with the help of fawrah or spade and sowing is done manually by dibbling. The average size of land holding of Meghalaya is 1.33 ha. and irrigate crop area is 22.1% ha. The available farm power in Meghalaya is 1.072 kW/ha against the required power 2.5 kW/ha. The share of Power in national level is Mechanical Power-3%, Bullock Power-73%, Human Power-24%, Electrical Power- 0.07%. 

Pattern of Assistance 

  • For the tractor the subsidy offered is 25% of the cost limited to Rs.45, 000/- tractors up to 40 HP.
  • For Power Tiller, the subsidy offered is 40 % of the cost, limited to Rs.45000/- Power tiller 8BHP & above/@ 40 % of the cost, limited to Rs.25000/- Lightweight Power tiller below 8BHP for hilly regions.
  • For the Power-driven equipment (Tractor/Power Tiller operated) the subsidy offered is 25 % of the cost, limited to Rs.10000/- for essential tractor driven implements viz. MB/Disc Plough, harrow, cultivator, seed cum fertilizer drill. And for the power-driven equipment like harrow cultivator and seed drill 25 % of the cost, limited to Rs.10000/- for a set.

Bank Loans for Tractors in Meghalaya:

Meghalaya Rural Bank: this bank offers to finance for Tractors & Power Tiller.

Eligibility: all the small/marginal farmers, Agricultural laborer’s, Self-Help Groups (SHGs), Joint Liability Groups (JLGs).

Loan Amount: there is no minimum or maximum limit of land amount. And the loan amount will depend on the actual cost of tractors/power tiller and implements as per the invoices/ quotations.

Margin: Minimum 15% on the cost of the tractor.

Interest Rate: interest rate depends on  Bank’s guidelines.

Tractor subsidy in Nagaland:

Farm Mechanization and Technology: this state offer tractor loan based on following guidelines.

  • This scheme offers appropriate machinery/equipment based on the landholding size and crop.
  • Machinery and equipment can be used by Custom Hiring/sharing by groups of farmers.
  • Conserve Resources – Use Zero till Seed Drill, Laser Leveler, Happy Seed Drill Rotovator etc.
  • Training is provided for the proper use of Farm Machinery and its routine maintenance and servicing through Farm Machinery Training and Testing Institute, KVKs and State Agricultural Universities. 

Scheme 1: 

  • Type – Tractors (08 to 20 PTO HP)
  • Subsidy for SC, ST, Small and Marginal Farmers – Rs.1.00 lakh
  • The pattern of Assistance – 35%
  • Subsidy for other beneficiaries – Rs.0.75 lakh
  • The pattern of Assistance – 25% 

Scheme 2:

  • Type – Tractors (Above 20 to 70 PTO HP)
  • Subsidy for SC, ST, Small and Marginal Farmers – Rs.1.25 lakh
  • The pattern of Assistance – 35%
  • Subsidy for other beneficiaries – Rs.1.00 lakh
  • The pattern of Assistance – 25%

NABARD LOANS/ SUBSIDIES for Tractors in India: 

Loan Under Mechanized farming

For timely field operation of the farmers in India, the NABARD department providing assistance to the farmers for purchase of tractor with three matching implements by their-own by availing subsidies from the NABARD in India.

NABRBD Loan

  • All the Individual farmers/Co-operative Societies are eligible for bank loans towards the cost of tractor with three matching implements including one trailer.
  • 15% of the cost of the tractor should be contributed by the farmer as down payment. 

Subsidy

  • 30% cost subsidy or Rs. 30,000/- based on the tractor cost.
  • 100% transport subsidy will be provided by the NABARD. 

Eligibility

  • All the small and marginal farmers who are owning minimum cultivating land are eligible.
  • The Progressive Farmer/Cooperative Societies should own 6Acre/2.51 hectare of land in his own.
  • The land for Loan cum subsidy on tractor should be free from all encumbrances and should have a clear title of ownership with detailed survey particulars.

How to apply

  • You can get the application forms from the concerned Zonal Officers or Incharge of sub-depot
  • The concerned farmer should fill the application form along with all the required documents of the land.
  • The completed application should be submitted to the concerned Zonal Officer or In charge of the sub-depot.
  • In the general case, the scheme is sanctioned within 45 days from the concerned department.
  • For more details, you can contact the zoning officers of concerned zones.

Read: Agriculture Schemes For Farmers Welfare In Inida.

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