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Introduction to agricultural equipment loan, equipment subsidy:
We will learn about the grants, loans, and programs given to agricultural machinery and equipment today, which will give you information that may be useful for your regular farm operations. Indian farmers have a variety of cutting-edge methods that can be employed in place of manual labor to power bullock-drawn equipment, making their task quick and simple. However, a small number of groups continue to look forward to developments and assist in achieving them. A government program called Krishi Jagran provides you with information on the agricultural equipment that is eligible for subsidies as well as the amount of those incentives.
A manual for agricultural machinery loans and subsidies
The agricultural machinery listed below is eligible for subsidies under the Central Sector Plan Schemes. Farmers can get these incentives based on the cost of their equipment up to a specified cap. It is vital to note that depending on state government policies and laws passed, subsidies may vary in each Indian state. Therefore, farmers must keep up with the subsidies each year and should check the most recent rates and procedures for obtaining them at each state's official agriculture website.
Agriculture machinery and equipment subsidies
Please list the equipment and machinery for which subsidies are available first. These include:
- Tiller Power Tractor
- Power-driven tools
- Threshers of Power (all types)
- Sprinklers
- Drippy Watering
- animal-powered tools
- Tools and devices that must be used by hand, such as horticultural tools
- equipment for plant protection that is tractor mounted, powered, or both.
- Self-propelled machineries and instruments like self-propelled reapers and paddy transplanters
- Specialized power-driven equipment such as rotavators, tractor-drawn reapers, potato planters, sugarcane cutter planters, straw harvesters, strip till drillers, etc.
Check out the below program, which makes these subsidies available to farmers for the purchase of agricultural machinery and equipment, and the machines stated above for which you can receive them.
Cost standards and support delivery patterns that are part of the SMAM sub-mission on agricultural mechanization.
These are the subsidies that are offered to farmers, and they are listed below:
Tractor subsidies for agricultural equipment
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 1.60 lakhs with a pattern of assistance of 40%, and the subsidy accessible for 2 wheel drive having 08–20 PTO HP for the sum of Rs. 2 lakhs is 50%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 1.80 lakhs with a pattern of assistance of 40%, and the subsidy available for a 2 wheel drive with 08–20 PTO HP for an amount of Rs. 2.25 lakhs is 50%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 2.40 lakhs with a pattern of assistance of 40%, while the subsidy available for a 4 wheel drive with 20–40 PTO HP for an amount of Rs. 3.00 lakhs is 50%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 3.40 lakhs with a pattern of assistance of 40%, while the subsidy available for a 2 wheel drive with 40-70 PTO HP for an amount of Rs. 4.25 lakhs is 50%.
- The highest permitted subsidy per machine/equipment per beneficiary is Rs. 4.00 lakhs with a pattern of assistance of 40%, while the subsidy available for a 4 wheel drive with 40-70 PTO HP for an amount of Rs. 5.00 lakhs is 50%.
Subsidy for agricultural equipment's Power Tillers
- The highest permitted subsidy per machine/equipment per beneficiary is Rs. 0.50 lakhs with a pattern of assistance of 40%, and the subsidy available for power tillers below 8 HP for the value of Rs. 0.65 lakhs is 50%.
- The highest permitted subsidy per machine/equipment per beneficiary is Rs. 0.70 lakhs with a pattern of assistance of 40%, and the subsidy available for power tillers above 8 HP for the value of Rs. 0.85 lakhs is 50%.
Subsidy for agricultural equipment's rice transplanter
- The highest permitted subsidy per machine/equipment per beneficiary is Rs. 1.20 lakhs with a pattern of assistance of 40%, and the amount available for the self-propelled rice transplanter with four rows is Rs. 1.50 lakhs.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 4.00 lakhs with a pattern of assistance of 40%, while the subsidy available for self-propelled rice transplanters with more than 4–8 rows is Rs. 5.00 lakhs.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 6.50 lakhs with a pattern of assistance of 40%, while the subsidy available for self-propelled rice transplanters with over 8–16 rows is Rs. 8.000 lakhs.
Agriculture-related self-propelled machinery subsidies
- The highest allowable subsidy per machine/equipment per recipient is Rs. 1.40 lakhs with a pattern of assistance of 40%, and the amount available for the Reaper cum Binder with 3 wheels is Rs. 1.75 lakhs.
- The highest allowable subsidy per machine/equipment per recipient is Rs. 2.00 lakhs with a pattern of assistance of 40%, and the amount available for the Reaper cum Binder with 4 wheels is Rs. 2.50 lakhs.
- The maximum permitted subsidy per machine/equipment per recipient is Rs. 0.60 lakhs with a pattern of assistance of 40%, and the amount of the Reaper subsidy is Rs. 0.75 lakhs.
- The highest allowable subsidy per machine/equipment per recipient is Rs. 0.60 lakhs with a pattern of assistance of 40%, while the amount available for post hole digger or auger is Rs. 0.75 lakhs.
- The maximum permitted subsidy per machine/equipment per recipient is Rs. 0.70 lakhs with a pattern of assistance of 40%, and the amount of the Reaper subsidy is Rs. 0.90 lakhs.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 1.60 lakhs with a pattern of assistance of 40%, and the amount available for the multipurpose hydraulic system is Rs. 2.00 lakhs.
- The highest permitted subsidy per machine/equipment per recipient is Rs. 1.60 lakhs with a pattern of assistance of 40%, and the amount available for the track trolley is Rs. 2.00 lakhs.
Subsidy for tractor/power tiller (under 20 BHP)-powered agricultural equipment
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 0.16 lakhs with a pattern of assistance of 40%, and the amount available for the MB Plow, disc plow, cultivator, harrow, leveler blade, cage wheel, furrow opener, ridger, and weed slasher is Rs. 0.20 lakhs.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 0.32 lakhs with a pattern of assistance of 40%, and the subsidy available for furrow opener, Bund former, Crust breaker, Rotopuddler, Roto-cultivator, and Power Harrow is Rs. 0.40 lakhs.
- The maximum permitted subsidy per machine/equipment per beneficiary is Rs. 0.08 lakhs with a pattern of assistance of 40%, while the subsidy amount for the Chisel Plough is Rs. 0.10 lakhs.
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 0.08 lakhs with a pattern of assistance of 40%, while the amount available for harvesting and threshing equipments that are operated by engines/electric motors above 5 hp and tractors of above 35 BHP tractor is Rs. 0.10 lakhs.
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 0.30 lakhs with a pattern of assistance of 40%, while the amount available for Sowing, Planting, Reaping, and Digging Equipments is Rs. 0.40 lakhs.
- The highest permitted subsidy per machine/equipment per beneficiary is Rs. 0.30 lakhs with a pattern of assistance of 40%, while the amount available for Inter Cultivation Equipments is Rs. 0.35 lakhs, which is 50%.
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 0.30 lakhs with a pattern of assistance of 40%, and the amount available for equipments for residue management/hay and forage is Rs. 0.40 lakhs.
Subsidy on all manually operated or animal-powered agricultural machinery, implements, and tools
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 0.30 lakhs with a pattern of assistance of 40%. The subsidy available for harvesting and threshing equipments such as ground nut pod strippers, threshers, winnowing fans, tree climbers, horticulture, hand tools, maize shellers, feed block machines, and spiral graders is Rs. 0.40 lakhs.
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 0.010 lakhs with a pattern of assistance of 40%, and the subsidy available for harvesting and threshing equipments such as grass weed slasher, weeder, conoweeder, and garden hand tools is Rs. 0.012 lakhs.
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 0.010 lakhs with a pattern of assistance of 40%, and the subsidy available for harvesting and threshing equipments such as grass weed slasher, weeder, conoweeder, and garden hand tools is Rs. 0.012 lakhs.
Support towards the construction of PHT units
In particular in the producing catchments, for the creation of PHT units and for the transfer of primary processing technologies, value addition, low-cost scientific storage of agricultural goods, packaging units, and technologies for by-product management. The available subsidies are:
- The maximum permitted subsidy per machine/equipment per beneficiary is Rs. 2.00 lakhs with a pattern of assistance of 40%. The subsidy available for the micro rice mill, for which the sum is Rs. 2.40 lakhs, is 60%.
- The maximum permitted subsidy per machine/equipment per beneficiary is Rs. 1.25 lakhs with a pattern of assistance of 40%. The subsidy available for mini dal mills, for which the sum is Rs. 1.50 lakhs, is 60%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 4.50 lakhs with a pattern of assistance of 40%. The subsidy available for millet mill, for which the sum is Rs. 5.40 lakhs, is 60%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 4.50 lakhs with a pattern of assistance of 40%. The subsidy available for millet mill, for which the sum is Rs. 5.40 lakhs, is 60%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 2.50 lakhs with a pattern of assistance of 40%. The subsidy available for oil mill with filter press for all types of horticulture/food grain/oilseed crop is Rs. 3.00 lakhs and the amount is 60%.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 1.50 lakhs with a pattern of assistance of 40%. The subsidy available for all types of horticulture, food grain, and oilseed crops is Rs. 1.80 lakhs, for which the amount is 60%.
- The maximum allowable subsidy per machine/equipment per beneficiary is Rs. 3.00 lakhs with a pattern of assistance of 40%, and the amount Rs. 3.50 lakhs is 60% for all types of Solar Driers (for all types of Horticulture/food grain/oil seeds Crops) with floor area of approximately 400 to 1000 sq. feet.
- The highest allowable subsidy per machine/equipment per beneficiary is Rs. 0.50 lakhs with a pattern of assistance of 40%. The subsidy available for all varieties of Grinder/Pulverizer/Polisher (for all types of Horticulture/Food grain/oilseed crop) is Rs. 0.60 lakhs and the amount is 60%.
Plant protection equipment subsidies
The following sprayers are eligible for subsidies: the manual sprayer, the knapsack/foot-operated sprayer, the powered knapsack sprayer/power operated sprayer (capacity 8–12 lts), the powered knapsack sprayer/power operated sprayer (capacity above 12–16 lts), the tractor-operated sprayer (air carrier/assisted), the boom type, the eco-friendly light trap, the tractor-operated electrostatic sprayer
Subsidy for Purchasing Agricultural Equipment Combine Harvester
Under the Sub-Mission Scheme of Agricultural Mechanization being implemented by the Department of Agriculture, Cooperation and Farmers Welfare, subsidies at 40% of the project where the cost is limited to Rs. 24 lakhs, whichever is less, are extended to rural entrepreneurs, progressive farmers, NGO's, and self-help groups for establishment of farm machinery and to get updated with the innovations in farming. The banks are also providing and assisting in purchasing these projects.
A list of the loans that are offered to buy this agricultural equipment
The loans that are available for buying farm management equipment are shown below. Among them are the following:
Loan for Farm Mechanization
Government banks provide loans for combine harvesters, drip irrigation systems, and other items.
For each of them, the type of loan, important characteristics, paperwork needed, perks, interest rate, payback period, and eligibility requirements are outlined below.
Loan for a tractor under the Stree Shakti Mortgage-Free Program
This loan won't require a mortgage, has a low interest rate, and will be approved in three days. These offer choices for monthly payback.
Mortgage rate
The margin will be 25% based on the original invoice for the tractor and 50% for accessories for tractors. The interest rate is 11.20% annually.
Eligibility requirements
- Women should be the primary borrowers and co-borrowers.
- To apply for this loan under the applicant's name, agricultural land must be at least 2 acres in size.
- A minimum of Rs. 1.5 lakh should be earned by the borrower each year.
- Documents are necessary
- The following documentation are needed to sanction this loan:
- Pre-approval paperwork
- application for the specific type of loan that is fully completed.
- three passport-size photos.
- You must provide one of the following identification documents: a passport, voter ID card, or PAN card.
- to provide documentation of the borrower's address, such as an Aadhar card, passport, or voter ID card.
- Land evidence in written form.
- Income tax declaration certification from the revenue authority.
- quote from the dealer for the tractor you want to buy that was given to the customer based on their needs.
- Documents for pre-disbursements
Depending on the sort of loan you requested for, loan paperwork will be provided.
Six postdated checks must be delivered to the bank.
Post-disbursement paperwork
The RC book of the tractor for which the loan has been approved must be in the State Bank of India's favor and must include hypothecation fees.
original dealer invoice for the tractor.
For the customer's new car, comprehensive insurance coverage.
Other loans, such SSTLs with liquid collateral, have a different interest rate of 10%, but the rest are the same. The interest rate for the New Tractor Loan Scheme is 11.95% annually, and all other requirements are the same.
You can also look up your eligibility for an aquaculture subsidy or loan.
Obtaining financing for a combine harvester
This loan will be used to purchase the combine harvester and all of its attachments. The loan should be returned over the course of nine years in six yearly installments. The following are some of the main characteristics of this loan:
An annual interest rate of 12%
15 to 25 percent of the cost of the combine harvester and its attachments would be the margin rate.
The grace period is included in the offered 9-year repayment period.
To be eligible for this loan, you must submit a mortgage on land as security.
eligibility requirements for a loan for a combine harvester
Anyone who has used a combine harvester before is eligible to apply for this loan.
At least 8 acres of land must be in the applicant's name in order to qualify for this loan.
Documents are necessary
application for the specific type of loan that is fully completed.
three passport-size photos.
You must provide one of the following identification documents: a passport, voter ID card, or PAN card.
to provide documentation of the borrower's address, such as an Aadhar card, passport, or voter ID card.
Land evidence in written form.
Getting a loan for drip irrigation
Farmers may apply for this financing in order to buy a drip irrigation system. This has several crucial components and value. Among them are the following:
Loans for drip irrigation have an annual interest rate of 12%.
15 to 25 percent of the project's total cost is the margin rate required to sanction the loan.
The repayment period varies from five to thirteen years.
If you are borrowing less than Rs. 10,000, you do not need to provide any collateral, but if you are borrowing more than Rs. 10,000, you must provide a mortgage or charge on real property.
Application requirements for the drip loan
This loan is available to all farmers and those starting farming as a business who own their own land and are primarily engaged in agricultural operations.
Documents needed for a financing for drip irrigation
application for the specific type of loan that is fully completed.
three passport-size photos.
You must provide one of the following identification documents: a passport, voter ID card, or PAN card.
to provide documentation of the borrower's address, such as an Aadhar card, passport, or voter ID card.
Mortgage deeds for the property Guarantee deed loan for drip irrigation
This site provides you with clear information on the agricultural equipment by going through all of these programs, incentives, and loan application procedures.