The Farm Mechanization scheme is offered by the bank for Purchase of Farm, Machinery and Repair/Renovation of Tractors and Power tillers
Purpose – Loan is sanctioned for Purchase of new tractors and matching implements/equipments, purchase of new power tillers, purchase of second hand tractors with matching implements, purchase of agricultural machinery, and 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 4 acres of perennially irrigated land or corresponding acreage. Economic viability of financing tractor in each case shall be worked out. Thus, 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 2.5 acres of perennially irrigated land or corresponding acreage. Financing of power tiller shall be done after ensuring economic viability of the power tiller proposal.
Quantum of Loan – Need based loan
Repayment of Loan – Repayment of loan is to be made in half yearly/yearly installments as under:
| Particulars | Repayment period (Years) |
| Second hand tractors | 5 |
| Power tillers | 7 |
| Other farm machinery: | 7 (including repayment period) |
| a) Small & marginal farmers | holiday of one year) |
| b) Other farmers | 5 |
| Repair/renovation of tractors | 5 |