PGB Farm Mechanisation Scheme

 

 

Purpose

  1. Purchase of new tractors and matching implements/equipments such as cultivators, harrows, disc ploughs, trolleys, etc
  2. Purchase of new power tillers
  3. Purchase of tractors/ power tillers for the second time with matching implements
  4. Purchase of second hand tractors with matching implements
  5. Purchase of tractors under the Govt. of India Scheme on promotion of agricultural mechanization among small farmers (for small tractor delivering upto 40 horse power at the Rear Power Take off (PTO) shaft with matching implements)
  6. Purchase of agricultural machinery such as threshers, harvesters, seed drills, seed cum fertilizer drills, harrows, hoes, sprayers, plant protection equipment, etc.  Agricultural machinery may be power/manual/tractor driven
  7. Repair/renovation of tractors
   

Eligibility

For tractors: Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual leasehold rights of minimum 2.5 acres of perennially irrigated land or corresponding acreage. financing of tractor shall be done after ensuring economic viability of the tractor loan proposal.

For Power tillers: Farmer or a group of farmers holding land jointly should have a land holding either owned by them or held by them on perpetual lease hold rights of minimum 1.5 acres of perennially irrigated land or corresponding acreage. Financing of power tiller shall be done after ensuring economic viability of the power tiller proposal.

For other farm machinery/equipments: No condition of minimum land holding. Farmer should have proper scope for utilization of assets and based on economics should be in a position to conveniently repay loan.

   

Extent of Loan

Need based net of margin

   

Margin Norms

Amount of loan

Margin

Upto Rs. 1 lakh

Nil

Above Rs. 1 lakh to Rs.2 lakhs

5%

Above Rs. 2 lakhs to Rs. 5 lakhs

10%

Above Rs.5 lakhs

25%

Subsidy is to be treated towards margin

   

Repayment

Repayment of loan is to be made in half yearly/yearly installments as under:                              (maximumperiod)
i. Tractors                                           7-9 years
ii. Second hand tractors                  5 years
iii Power tillers                                  7 years
iv Repair/renovation of tractors     5 years

   

Security

Where moveable assets are created (both investment/production credit):

a)         Upto Rs.1,00,000/-

Hypothecation of crops/assets created out of bank loan;

b)         Above Rs.1,00,000/-

Hypothecation of crops/assets created out of bank loan;
And
Charge on land as per Agricultural Credit Operations and Miscellaneous Provisions Act of the State concerned/Mortgage of agricultural land valued at 100% of amount of loan for other farmers, 75% of the loan amount for small farmers/marginal farmers;
Or
Alternate security, viz., charge/lien over liquid securities such as term deposits/NSCs/ KVPs, etc., which may be considered adequate;
Or
Suitable third party guarantee.

 

 

For more detail, please contact to our nearest branch.