Gujarat Tractor Subsidy, Bank Loan, Eligibility, Schemes, Process

Tractors are the machinery, tools used for agricultural production. Using machines will increase the productivity of the farms, and even the quality of the product and reduce the hazards of operations. Even the government of India is also offering several schemes to distribute tractors and field machinery to farmers at subsidized prices to encourage their use in modern agricultural methods. Using tractors and machinery by farmers, the cultivated area has been doubled over the years.

In India, the tractor industry plays a key role in the development of agricultural production in India. The Indian tractor industry is very young when compared to world development. But, when comparing the current market trends, tractors are pride in India’s automobile industry. The developed countries like the U.S.A., U.S.S.R. And only a few Western European countries, exceed our current production of tractors in India, but in terms of growth, India’s growth stands at the top, even with countries of a long history of tractor manufacturing.

Government Tractors Subsidy Schemes in Gujarat: Procure appropriate machinery/ equipment as per land holding size and crop. The purchased tractors& equipment can be used by Custom Hiring/sharing by groups of farmers.

Features of the scheme:

  • Training will be provided for the eligible persons, on the proper use of Farm Machinery and its routine maintenance and servicing through Farm Machinery Training &Testing Institutes (FMTTIs), KVKs & State.
  • For Tractor (up to 40 PTO HP) – a subsidy of Rs.45, 000 or 25% of cost of tractors, for tractors (more than 40 PTO HP) a subsidy of Rs.60, 000 or 25% of cost, whichever is less 60 PTO HP)
  • Tractors (up to 20 HP) – For SC, ST, Small & Marginal Farmers and Women – 35% / 1.00 Lakh. For other Beneficiaries – 25% / 75,000
  • Tractors (20 to 40 HP) -For SC/ST, small & marginal farmers, 35%of cost or 1.25 lakh, and for other Beneficiaries-25% or 1.00 lakh, whichever is less.
  • Tractors (Above 20 to 70 PTO HP) – For SC, ST, Small & Marginal Farmers and Women – 35% / 1.25 Lakh For other Beneficiaries – 25% / 1.00 Lakh.
  • Power Tiller/mini tractor – 40% of the cost of the tractors or 45,000 for a general farmer, for SC, ST farmer 50% or Rs. 60,000, whichever is less.

Scheme for financing Tractors- By Dena Gujrat Gramin Bank:

For a farmer who needs a tractor for Agriculture purpose are facilitated by a tie-up with manufacturers/company of various tractors with the cheapest rate and free service facility for a tractor.

Tractor Financing by Bank of Baroda:

This bank offers Finance for Tractors & Heavy Agriculture Machinery.

Main Purpose of Scheme:

  • Purchase of new tractor
  • Tractor-drawn implements
  • Power tiller and other agricultural machines etc.


  • Small and marginal, literate and illiterate farmers whose main occupation is a cultivation of crops as the owner of the land, permanent tenants or leaseholders (for reasonably long periods) and who utilize the tractor/ machinery to the minimum extent of 50% on their own landholding.
  • They should possess perennially irrigated land of a minimum of 4 acres (tractors to the farmer with land holding below 6 acres of irrigated land is considered for tractors with horsepower up to 35 HP).
  • They should cultivate high-value commercial crops such as sugarcane, grapes, bananas & vegetables.

Margin: Min10% of the Cost of the tractors& Implements.

Repayment Period: For tractors, the repayment period is 9 years: for Power Tillers- 7 years (Depends upon the repaying capacity on half-yearly and annual basis based on surplus generation from the crop and landholding of farmers).

Applicant can apply online for Gujarat Tractor Subsidy on I -Khedut Portal

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