Farm Mechanization Scheme

Farm mechanization loan is providing to the farmers for development and use of machines that can take the place of human and animal power in agricultural processes. The mechanization of agriculture that took place during the 20th century led to major changes in how farmers plant, irrigate and harvest crops. Combines, tractors, harvesters and other machinery have enabled farmers to increase their production while relying less upon an extended labor force. The Farm Mechanization loan gives to the farmers for Purchase of Tractors/Power tillers, Purchase of Combine Harvesters, Purchase of Threshers & other farm implements and Purchase of vehicle for transportation of farm input and production. The efficiency of mechanization can be judged from the fact that modern plough is about 200 to 300 % efficient than indigenous plough, efficient machinery helps in increasing productivity by about 30% besides, enabling the farmers to raise a second crop or multi-crop making the Indian agriculture attractive and a way of life by becoming commercial instead of subsistence. There is a need to double the food production by 2020. The Amount is given as per cost of machinery along with implements and accessories

Benefits of Farm Mechanization:

1. Loan up to Rs 1.00 lakh: No Margin For tractor / Power tiller unit
2. Loan over Rs 1.00 lakh : 15 % -25% of investment cost of unit For tractor / Power tiller unit

Objectives of Farm Mechanization:

1. Purchase of Tractors/Power Tillers
2. Purchase of Combine Harvesters
3. Purchase of Threshers & other farm implements
4. Purchase of vehicle for transportation of farm input/produce

Eligibility for Farm Mechanization Loan:

1. In order to avail loan for the purchase of Combine Harvesters, etc
2. Farmers should have five acres of perennially irrigated land or corresponding acreage as prescribed for different categories of land under the concerned State Land Ceiling Act
3. Farmers should have productive work for minimum of 2000 Hrs in a year for combine harvester
4. In order to avail loan for the purchase of Tractors, Power Tillers with accessories, implements & or Trolley, etc
5. Farmers should have at least five acres of perennially irrigated land or corresponding acreage as prescribed for different categories of land under the concerned State Land Ceiling Act
6. Farmers should have productive work for minimum 1000 hours for Tractors and 600 hours for Power Tillers
7. All farmers like Individual / Joint landholders are eligible for this loan

Documents required for Farm Mechanization:

1. No dues certificates of the applicant from surrounding financial institutions
2. Price quotations/ Plan estimates / Permissions etc. depending upon the purpose of loan
3. Hypothecation of combine harvester/tractors/power tillers and other machinery
4. For loans exceeding Rs.1,00,000/- Mortgage of land & or 3rd party guarantee
5. Comprehensive insurance policy of the combine harvester/tractor/ power tiller and other machinery

Application procedure for Farm Mechanization:

1. You may contact your nearest branch of a bank
2. You may even talk to the marketing officers visiting your village

Contact details & References:

1. For more details about farm Mechanization please visit following site
2. http://www.bankofmaharashtra.in/credit_fac_agri.asp
3. http://www.unionbankofindia.co.in/RABD_Long_Farm%20Mechanization.aspx