A combine harvester or a central pivot costs more than most farmers earn in several seasons. Punjab’s hi-tech mechanization programme tries to solve that with large loans where the government carries the interest.
This is one of the more commercially interesting schemes in the province, so the terms are worth reading closely.
Quick Overview
- Interest-free loans of up to Rs30 million through the Bank of Punjab for 12 categories of high-tech machinery.
- Open to farmers, agricultural service providers and entrepreneurs or companies.
- Repayment in 20 equal quarterly instalments, with a six-month grace period reported at launch.
- Application processing fee: Rs5,000.
- The portal was launched on 9 October 2025. We could not confirm whether it is accepting new applications today.
What Is the Programme?
It is a financing programme run by the Punjab Agriculture Department with the Bank of Punjab. The government bears the interest cost. The aim, according to the department, is to reduce labour dependence and the losses caused by late or inefficient harvesting.
By June 2026 the Chief Minister said nearly 200 combine harvesters had been supplied on this finance. In the 1 July 2026 briefing, officials said 280 advanced machines had reached farmers and the target was 2,000 by June 2027.
Who Is Eligible?
- Resident of Punjab
- Farmer, service provider or entrepreneur. Service providers must be registered with the Agriculture Department’s field wing
- Willing to allow monitoring and inspection by Agriculture Department and bank officials
- One application per individual or business
The bank carries out its own credit review and may approve or reject.
Loan Terms and Eligible Machinery
- Maximum loan: Rs30 million
- Repayment: 20 equal quarterly instalments
- The loan is paid directly to the approved supplier
- The machine stays hypothecated to the bank until the loan is repaid
- No sale or transfer for five years or until repayment
Machinery named by the government includes wheat combine harvesters, multi-crop and rice planters, rice harvesters, balers, maize cob harvesters, silage harvesters, orchard pruners and sprayers, central pivots, irrigation systems and high-power tractors.
Overseas manufacturers from China, Türkiye, Italy and other countries were listed at launch.
How to Apply
- Open the programme page on the Agriculture Department website and follow the Apply link.
- Register and fill in your personal and business details.
- Select machinery from the approved list.
- Pay the Rs5,000 processing fee.
- The bank carries out due diligence.
- If approved, the bank pays the supplier directly.
Documents Required
Exact lists appear on the portal. Expect to need:
- CNIC and contact details
- Land or business proof
- Service provider registration, where relevant
- Supplier quotation for the chosen machine
Important 2026 Status
Active programme. New application status needs verification.
The 12 categories and terms above come from the government’s scheme page. We did not find an official statement of an application deadline or a cap on total loans for 2026–27.
Common Mistakes to Avoid
- Picking a machine not on the approved list
- Forgetting that unsold machinery must stay with the borrower for five years
- Underestimating bank charges beyond the processing fee
- Applying without service provider registration
- Treating the loan as a grant. It must be repaid
Frequently Asked Questions
Is this the same as a tractor subsidy?
No. The Green Tractor Scheme is a subsidy by ballot. This is a loan you repay.
Can I finance a high-power tractor?
The government lists high-power tractors among eligible machinery. See also the Hi-Power Green Tractor Scheme.
Do small farmers qualify?
The loan is aimed at those who can repay. Service providers who rent machinery to others are a major target group.
Who pays the interest?
The government of Punjab bears the interest on the loan amount, according to the scheme page.
Where can I get business loans for non-farm activities?
See our guide to Asaan Karobar Finance.
Final Takeaway
For a serious machinery buyer, interest-free finance is a big advantage. The trade-off is formal bank scrutiny and long-term obligations. Read the agreement before signing.
This is an independent informational guide and is not an official government website.
