Tractor Subsidy in Kerala

The NABARD unit cost for Tractor in Kerala is ₹5,75,000 (specification: 40 HP). This is the benchmark amount banks use when sanctioning a term loan for this activity. The actual subsidy you receive depends on the scheme — typically 25–50% of the unit cost.

The specification "40 HP" defines the exact scale or parameters of the investment — such as area in hectares, capacity in litres per day, number of animals, or structural dimensions. NABARD unit costs are tied to this specification; a different scale may have a different unit cost. If your project differs, ask your bank to use the nearest applicable NABARD benchmark.

Step 1: Prepare a DPR for Tractor using the NABARD unit cost of ₹5,75,000 as the benchmark. Step 2: Visit a nationalised bank or RRB in Kerala with land records, Aadhaar, and the DPR. Step 3: The bank appraises and routes the subsidy claim through the Farm Mechanization department. Step 4: After physical verification, the subsidy is deposited into your loan account. Total processing time is typically 30–60 days.

Tractor falls under the Farm Mechanization category. Relevant central schemes include Sub-Mission on Agricultural Mechanization (SMAM). Check the Apply section below for the specific portal and nodal department in Kerala.

Among states with published NABARD unit costs for Tractor, Madhya Pradesh offers the highest amount at ₹15,75,000, compared to ₹5,75,000 in Kerala. Differences reflect local input costs, transport, and state-level top-up subsidies. The compare table below shows amounts across all states where this activity has published unit costs.

NABARD-linked term loans for farm mechanization investments like Tractor typically have a repayment period of 5–9 years (including a moratorium of 1–2 years). The moratorium aligns with the gestation period of the investment — for example, a fruit orchard may take 3 years to yield income, so repayment begins after that. Exact tenure depends on your bank and the specific scheme.