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PNB Farm Mechanisation Scheme

Finance for new or second-hand tractors, power tillers, matching implements, farm machinery and eligible tractor repairs. PNB also publishes a separate tractor-finance route without mortgage of land, with its own margin, security and repayment conditions.

Loan amountMain route: need-based net of margin; up to ₹1 lakh for tractor repair/renovation and up to ₹2 lakh for a second-hand tractor. The separate new-tractor route without land mortgage is need-based; no fixed rupee ceiling is stated.RepaymentMain route: tractor 7–9 years; second-hand tractor 5 years; power tiller 7 years; repairs/renovation 5 years; other machinery 7 years for small/marginal farmers and 5 years for other farmers. Instalments are half-yearly or yearly and linked to crop harvest/marketing; gestation is up to one year for small/marginal farmers and six months for others. Separate no-land-mortgage tractor route: up to 5 years in monthly, quarterly or half-yearly instalments; Circle Heads may extend 60 months to 72 months on merits. No moratorium is prescribed for this route.Facility typeAgriculture equipment term finance, including a separate tractor-finance route without mortgage of land.
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PNB Farm Mechanisation Scheme

0 of 5 answered

Answer what you know. This guide compares your answers with the criteria published for this product; it is not an approval decision. Your answers stay on this device.

1Do you meet this requirement: Main machinery route: at least 2.5 acres of perennially irrigated land for tractors (or equivalent acreage under the State Land Ceiling Act)?

Published source: Eligibility

2Do you meet this requirement: at least 1.5 acres for power tillers?

Published source: Eligibility

3Does your age meet this requirement: tractor repairs are for tractors over five and not over 12 years old?

Published source: Eligibility

4Does your age meet this requirement: second-hand tractors must be no more than five years old?

Published source: Eligibility

5Do you meet this requirement: the tractor must be driven by a person holding a valid driving licence?

Published source: Eligibility
0 of 5 answeredAnswer the remaining questions to see your checklist result.
✓ Manually checked 3 Oct 2026 · active
Offered byPunjab National Bank

India

Key facts

What the official sources publish

Every value belongs to this exact product. Expand any fact to inspect its official evidence in place.

Facility typeAgriculture equipment term finance, including a separate tractor-finance route without mortgage of land.View source
PNB presents its regular farm-machinery scheme and an additional tractor-finance mode without mortgage of land.
Source
PNB Farm Mechanisation Scheme
Page / section
pages 1–2, Part A and Part B facility descriptions
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
PurposePurchase new tractors and matching implements; second-time tractor/power-tiller purchase with implements; new power tillers; eligible second-hand tractors; machinery under SMAM; tractor repair and renovation; and farm equipment including threshers, harvesters, seed drills, sprayers and plant-protection equipment. The separate Part B route finances new tractors with or without matching equipment.View source
The lists eligible machinery and repair uses under Part A and new-tractor purchase under Part B.
Source
PNB Farm Mechanisation Scheme
Page / section
pages 1–2, Part A and Part B Purpose
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
EligibilityMain machinery route: at least 2.5 acres of perennially irrigated land for tractors (or equivalent acreage under the State Land Ceiling Act); at least 1.5 acres for power tillers; tractor repairs are for tractors over five and not over 12 years old; second-hand tractors must be no more than five years old; the tractor must be driven by a person holding a valid driving licence. Separate tractor route without mortgage of land: individual farmer with at least 2.5 acres of perennially irrigated land (or equivalent) and no NPA record in the previous three years.View source
The two-page separates thresholds and age rules for the main machinery route from the acreage and prior-account-conduct rules for the no-land-mortgage tractor route.
Source
PNB Farm Mechanisation Scheme
Page / section
pages 1–2, Part A and Part B Eligibility
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
Loan amountMain route: need-based net of margin; up to ₹1 lakh for tractor repair/renovation and up to ₹2 lakh for a second-hand tractor. The separate new-tractor route without land mortgage is need-based; no fixed rupee ceiling is stated.View source
The gives explicit caps for tractor renovation and second-hand tractors, and states need-based amounts for the other routes.
Source
PNB Farm Mechanisation Scheme
Page / section
pages 1–2, Part A and Part B Extent of Loan
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
RepaymentMain route: tractor 7–9 years; second-hand tractor 5 years; power tiller 7 years; repairs/renovation 5 years; other machinery 7 years for small/marginal farmers and 5 years for other farmers. Instalments are half-yearly or yearly and linked to crop harvest/marketing; gestation is up to one year for small/marginal farmers and six months for others. Separate no-land-mortgage tractor route: up to 5 years in monthly, quarterly or half-yearly instalments; Circle Heads may extend 60 months to 72 months on merits. No moratorium is prescribed for this route.View source
All repayment periods, installment cycles, gestation periods, extension discretion and the no-moratorium statement are kept attached to their respective route.
Source
PNB Farm Mechanisation Scheme
Page / section
pages 1–2, Part A and Part B Repayment and Moratorium
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
MarginSeparate tractor-finance route without mortgage of land: minimum 40% cash margin. Main machinery route specifies need-based finance net of margin but does not state a single common margin percentage in this two-page document.View source
Part A says amount is net of margin without giving a common percentage; Part B states a minimum 40% cash margin.
Source
PNB Farm Mechanisation Scheme
Page / section
pages 1–2, Part A and Part B Margin
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
SecuritySeparate tractor-finance route without mortgage of land: hypothecation of assets created from the loan as primary security and adequate third-party guarantee(s) as collateral. The PDF does not state a separate land mortgage for this route.View source
Part B states primary hypothecation, collateral third-party guarantees with adequate means, and identifies the financing route as without mortgage of land.
Source
PNB Farm Mechanisation Scheme
Page / section
page 2, Part B Security
Accessed
3 Oct 2026
Confidence
high
Open official source ↗
Geographic limitsMain machinery route: at least 2.5 acres of perennially irrigated land for tractors (or equivalent acreage under the State Land Ceiling Act); at least 1.5 acres for power tillers; tractor repairs are for tractors over five and not over 12 years old; second-hand tractors must be no more than five years old; the tractor must be driven by a person holding a valid driving licence. Separate tractor route without mortgage of land: individual farmer with at least 2.5 acres of perennially irrigated land (or equivalent) and no NPA record in the previous three years.View source
The manually reviewed product record states: “Main machinery route: at least 2.5 acres of perennially irrigated land for tractors (or equivalent acreage under the State Land Ceiling Act); at least 1.5 acres for power tillers; tractor repairs are for tractors over five and not over 12 years old; second-hand tractors must be no more than five years old; the tractor must be driven by a person holding a valid driving licence. Separate tractor route without mortgage of land: individual farmer with at least 2.5 acres of perennially irrigated land (or equivalent) and no record in the previous three years.”.
Source
PNB Farm Mechanisation Scheme — official product page
Page / section
Published product metadata
Accessed
3 Oct 2026
Confidence
high
Open official source ↗

Benefits and features

  • The scheme covers new and second-hand equipment, machinery and repairs
  • A separate financing mode is published for eligible tractor borrowers without mortgage of land

Eligibility

  • The main machinery route publishes landholding thresholds and equipment-age rules. The separate no-land-mortgage tractor route requires at least 2.5 acres of perennially irrigated land (or equivalent under the relevant State Land Ceiling Act) and no record for the preceding three years.

Passing a listed condition does not mean the bank will approve an application.

Related official documents

PNB Interest Rates on Advances — current agriculture and specific-scheme ratesofficial-rate-table · current · accessed 6 Oct 2026
↗
PNB Farm Mechanisation Schemeofficial-agriculture-scheme-pdf · current · accessed 3 Oct 2026
↗

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Loan repayment estimate

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One monthly payment₹21,696twenty-one thousand six hundred ninety-six rupees
Interest paid over the full loan₹27,06,939twenty-seven lakh six thousand nine hundred thirty-nine rupees
Everything you repay₹52,06,939fifty-two lakh six thousand nine hundred thirty-nine rupees

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New tractor and matching implements · Published eligibility or capAt least 2.5 acres perennially irrigated (or State Land Ceiling Act equivalent); need-based net of margin

This value is copied from Farm Mechanisation — machinery route. Check the table notes before relying on it.

Source: PNB Farm Mechanisation Scheme · page 1, Part A Purpose, Eligibility, Extent of Loan and Repayment Open official source ↗

Published tables

Complete rates, limits and schedules

Tables preserve every reviewed row and column from the cited official source.

Table 1 · 5 rows · 3 columnsFarm Mechanisation — machinery routeView tableHide table

Scroll sideways to view every column

Farm Mechanisation — machinery route
Purpose / assetPublished eligibility or capRepayment / gestation
New tractor and matching implementsAt least 2.5 acres perennially irrigated (or State Land Ceiling Act equivalent); need-based net of margin7–9 years; half-yearly/yearly instalments linked to harvest/marketing; gestation up to 1 year for small/marginal farmers and 6 months for others
Second-time tractor or power tiller with implements; new power tillerPower tiller: at least 1.5 acres; other acreage per applicable scheme rulesPower tiller 7 years; tractor per route terms
Second-hand tractorNo more than 5 years old; maximum loan ₹2 lakh5 years
Repair / renovation of tractorTractor over 5 years but not over 12 years old; maximum loan ₹1 lakh5 years
Other farm machinery, including threshers, harvesters, seed drills, sprayers and plant-protection equipmentNeed-based net of margin; permitted under SMAM where stated7 years for small/marginal farmers; 5 years for other farmers
  • The borrower must undertake that the tractor will be driven by a person with a valid driving licence. The also lists machinery use under the Government of India's Sub-Mission on Agricultural Mechanization (SMAM), including equipment and tractors up to 70 horsepower at the rear power take-off shaft.
PNB Farm Mechanisation Scheme · page 1, Part A Purpose, Eligibility, Extent of Loan and Repayment · accessed 3 Oct 2026Open official source ↗
Table 2 · 7 rows · 2 columnsFarm Mechanisation — tractor finance without mortgage of landView tableHide table

Scroll sideways to view every column

Farm Mechanisation — tractor finance without mortgage of land
TermPublished condition
PurposePurchase of a new tractor, with or without matching implements/equipment
EligibilityIndividual farmer with at least 2.5 acres perennially irrigated land (or applicable equivalent); no record in the preceding three years
Amount / marginNeed-based; minimum 40% cash margin
Primary securityHypothecation of assets created from the bank loan
CollateralAdequate third-party guarantee(s)
RepaymentUp to 5 years in monthly, quarterly or half-yearly instalments; Circle Heads may extend from 60 to 72 months on merits
MoratoriumNo moratorium prescribed
  • This is an additional financing mode under the existing scheme; the says other scheme guidelines continue to apply.
PNB Farm Mechanisation Scheme · page 2, Part B tractor financing without mortgage of land · accessed 3 Oct 2026Open official source ↗

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