A large portion of the Indian population is engaged in agricultural activities and business. The farming sector has started to change rapidly due to the introduction of modern technology. Several businesses are now implementing machinery to enhance production with minimum effort. However, this has become challenging for Indian farmers as these types of technologically advanced machinery cost higher compared to standard farming equipment.
The Central Government, as well as state governments, have come up with tractor finance or subsidy schemes to tackle this situation. A tractor subsidy is a cash payment that the government offers to farm businesses and individuals. The subsidies enable the farmers to afford technologically advanced tractors that can increase production. Generating good yield, in turn, helps enhance the country’s economic efficiency.
Here is a list of three government-backed tractor loan subsidy schemes available in India.
1. Sub-Mission on Agricultural Mechanization (SMAM)
Small and marginal farmers of India receive the benefit of subsidy under this scheme. The government has also established special centers all over India under SMAM. These hubs offer guidance about different agricultural activities to help the farmers.
2. Rashtriya Krishi Vikas Yojana (RKVY)
RKVY is one of India’s primary schemes designed to benefit farmers when it comes to tractor loan subsidies. The state governments offer the RKVY scheme under the National Agriculture Development Program. RKVY provides a 100% subsidy for agriculture mechanization to Indian farmers. However, the rules and regulations of this scheme vary among states.
3. National Bank for Agriculture & Rural Development (NABARD) loans
If you want to grow your farming business significantly, this is the right option for you. Under the NABARD scheme, you can get a 30% subsidy to purchase tractors. And if you want to buy transport machinery, you can get a 100% subsidy under this scheme.
Advantages of tractor subsidies
- Enable you to buy advanced farming machinery.
- Allow you to meet the overall cost of farming.
- Empower you to significantly reduce the total cost and time of cultivation.
- Help you to grow your farming production and improve your life.
Apart from these subsidies, you may consider availing of finance from Mahindra Finance if you are looking for affordable tractor loan interest rates. The financing will enable you to purchase high-quality tractors required for modern farming needs. Mahindra Finance offers loans for various tractors with flexible repayment options. Moreover, they require easy tractor loan documents. Visit their website to apply for one today.