Tractor Subsidy In Telangana

Tractors Subsidy in Telangana

Telangana Government Providing Tractor Subsidy to Farmers

Telangana: Agriculture Minister P Srinivas Reddy said that, the State government has been promoting farm mechanisation in a big way.

He also informed that, the government has allocated Rs 300 crore towards subsidy of farm equipment and tractors. It was planned to distribute a total of 3,900 tractors and farm machinery. To SC/ST farmers 100 percent subsidy would be given while others would be given 50 per cent subsidy.

The Minister distributed tractors to few farmers of Parkal assembly constituency at a programme organised at Warangal Rural district Collector's office in Hanamkonda.

All eligible farmers would be given tractors and by March 31 the farmers should apply for tractors.

Setting up of the processing units in the areas where the production of the particular crop was high would help farmers get remunerative prices and creates employment, said Srinivas Reddy.

From the farmers, there was huge response for the drip and sprinklers irrigation units. This year, About 1, 46,000 farmers have applied for the drip and sprinklers units.

So overall the Telangana Government promoting farm mechanisation seriously to help the farmer for getting more yield from their farm fields.

New Tractor Loan Scheme from SBI

Purpose

Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements

Eligibility

Any individual or group of individuals i.e., JLGs/SHGs, institution or organization are eligible for finance which will have sufficient and regular income either from own farm activity or custom hiring incomes from the tractor proposed to be purchased and its accessories. Borrower should possess a minimum land holding of 2 Ac.

Margin

Minimum of 15%.

Primary security

Hypothecation of Tractor & Accessories.

Insurance:

The tractor and accessories purchased with banks finance have to be comprehensively insured for the full value.

Collateral Security

Mortgage of landed property valued equivalent of 100% of loan value.

Interest

12% p.a. For prompt repayment, further concession of interest @1.00% by way incentive will be extended to the borrower and 0.50% to the tractor dealer. Concession will be extended in the month of july and will be on the basis of interest recovered between 1st July to 30th june of every year.

Upfront fee

0.5% of loan amount has to be charged as upfront fee.

Repayment

Loan is repayable in equated monthly installments in 5 years, including grace period of 1 month. (Relaxed in tune with the regular flow of funds in the hands of the borrower). Postdated cheques will be obtained from the borrower for the EMI EMI per Rs 1 lakh Rs 2225