Punjab Green Tractor Scheme 2024: Eligibility, Benefits, and Application Process
Agriculture is Pakistan’s central income resource. Farmers always try to do their best work. However, due to a lack of machinery, farmers always have significant problems. One of the primary essential vehicles for farmers is tractors. Farmers always wait for schemes like the Punjab Green Tractor Scheme. The best tractors can result in the best farming.
After seeing these problems, the Chief Minister of Punjab, Maryam Nawaz Shareef, has decided to give the tractors to the farmers at very low interest rates. The interest rates for the loans will range from 4% to 7%, depending on different categories. These tractors will be given through the Bank of Punjab.
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Criteria for the Green Tractor Scheme
These schemes are for farmers who cannot afford tractors themselves. The scheme will be given only to those who fulfill these criteria. The detailed criteria are shown in the following table.
| Purpose | Eligibility Criteria | Age Requirement |
|---|---|---|
| Bop will finance all brand-new or used tractors which are used for a maximum of two years only. The same criteria is implemented for other agricultural Financing for the purchase of all brand-new/used (used up to two years only) agri implements / Machinery. | Minimum Land owned by the customer sufficient to cover the finance amount along with applicable margins (Owned or Family Owned i.e. Father, Son, husband, Wife). Should not have write off history | Age should be between 21- 65 (Max. 65 years at time of maturity) |
Loan for Punjab Green Tractor Scheme
These tractors are not given to the farmers for free. They will be given on loan, and the interest rate on these loans is reduced to a greater extent. The original interest rate was up to 21%, but in this scheme, it is decreased from 4% to 7%.
To maintain all these loans and installment systems, the CM of Punjab, Maryam Nawaz, and her committee have decided to include the Bank of Punjab in this scheme. The main criteria for the loan of the Punjab Green Tractor Scheme are described in the following table.
| Condition | MINIMUM | MAXIMUM |
|---|---|---|
| Each Tractor Limit | Rs.500,000/- | Rs.5.00 Million |
| Each Agri implements/machinery | Rs.500,000/- | Rs.10.00 Million |
| Each Party Limit | Rs.500,000/- | 20.00 Million |
| Loan Tenor | Minimum 1 year and maximum 10 years. |
| Lease Key Money | 20% of the Total value of the Tractor /Harvester and 30% for the rest of the Agri Implements / Machinery. |
| Pricing | KIBOR + 4% to 7% p.a. |
| Security Requirement | As per banks’ policy |
| Insurance & Tracker Cost | Actual (To be paid by Lessee) |
| Processing Fee(Non-refundable) | Rs. 5000 per tractor & agri Implements /Machinery |
| Processing Fee | As per SOC |
Targeting Market for Punjab Green Tractor Scheme
This Scheme benefits BOP by giving them 4% to 7% interest on the loans. The BOP will target both farmers and companies for this Scheme. Let me make things easy for you. The tractor companies will advertise this, and more tractors will be sold. The BOP will also finance the farmers to get tractors from the companies. So, the Scheme will favor all farmers, the BOP, and the companies.
Government Subsidy on Punjab Green Tractor Scheme
The government will also give subsidies on these tractors. The government of Punjab will give a 70% subsidy on small-size tractors and a 70% subsidy on large-size tractors. The government has also focused on quality assurance for tractor companies. After receiving many complaints from farmers about the quality of the tractors, the government has taken strict steps against the tractor-manufacturing companies.
Also, a flat 6 lac subsidy on each tractor will be given to the specific farmers. This will provide the farmers with significant relief. In the last season, the farmers faced many financial problems due to the low sale value of the wheat. The government is trying to give them other schemes to lower their burden. So, schemes like the Punjab Green Tractor Scheme are the most significant steps taken by the CM of Punjab, Maryam Nawaz Shareef.
Conclusion
Due to the farmers’ financial problems, the government of Punjab has launched a scheme named the Punjab Green Tractor Scheme. Through this Scheme, the government will provide many agricultural instruments and tractors at a very low interest rate. The farmers will receive these tractors and agricultural machinery in installments.
The Bank Of Punjab is dealing with these initiatives. The Bop will approach both the farmers and the industrialists for this purpose. The loan will be given only on the 4 to 7 percent interest. These interests will be paid in installments along with the remaining amount of the tractor.
The Punjab government will also provide future Subsidies for these Tractors. Their subsidy included 50 to 70 percent on the big and small tractors, respectively. These subsidies will also help the farmers with their burdens. A flat subsidy of six lac will also be provided to specific poor farmers to strengthen their backs.
This is a friendly scheme for farmers. We should appreciate the Government of Punjab and the CM of Punjab, Maryam Nawaz Shareef, for announcing schemes like the Punjab Green Tractor Scheme.