Interest-free loans for farm machinery

The Chief Minister's Punjab Hi-Tech Farm Mechanization Financing Program gives farmers, agricultural service providers and agri-entrepreneurs interest-free bank loans of up to Rs 30 million (Rs 3 crore) to buy modern farm machinery. The Punjab government pays the interest. You pay a 20% share of the machine's price upfront and repay the rest over five years.

It is not a grant, and it is not for ordinary tractors. It pays for expensive specialist machines, such as combine harvesters, rice planters, balers and pivot irrigation, that most farmers could not buy outright. If you want a standard tractor, see the CM Green Tractors Scheme instead.

At a glance

Who can apply

Three kinds of applicant are eligible. The Agriculture Department sets these conditions:

• Farmers who own at least 5 acres of land
• Service providers registered with the Agriculture Department (Field Wing), Government of the Punjab
• Entrepreneurs and agri-companies with a valid NTN

Every applicant must also:

• Be a resident of Punjab and aged 21 to 65
• Hold a valid CNIC and a mobile number registered in their own name
• Have a clean credit history with no overdue loans, and pass the bank's credit assessment
• Be able to pay quarterly instalments, which the bank assesses
• Be willing and able to deposit 20% of the total machine cost upfront

Only one application is allowed per individual or business, and each applicant can use the subsidy only once during the whole programme.

Machinery you can finance

When the programme launched in October 2025, the Punjab government said it covers 12 categories of hi-tech machinery, including:

• Wheat combine harvesters and rice harvesters
• Multi-crop planters, rice planters and nursery machines
• Wheat straw balers
• Maize cob harvesters and maize cob dryers
• Silage harvesters
• Orchard pruners and orchard air-blast sprayers
• Centre-pivot irrigation systems
• High-power tractors

You choose an approved supplier. The loan is paid directly to the supplier, not to you.

What you pay

• Equity: at least 20% of the machine cost, deposited within the time the bank sets after it approves your case.
• Instalments: the bank-financed 80% is repaid in 20 equal quarterly instalments. Interest is borne by the Government of the Punjab.
• Fees: Rs 5,000 application processing fee, plus other charges under the bank's own policy.
• Insurance: comprehensive insurance against theft, accident, fire and natural calamities, at your own cost.
• Late payment: late-payment charges are recovered under the bank's schedule of charges.

Security the bank will ask for

• The machine stays hypothecated to the bank until the loan is fully repaid.
• A personal guarantee from you.
• Verified land ownership record: fard malkiat or inteqal.
• Service providers who own no land must offer alternate collateral, such as property.
• A clean record with the Kissan Card, the State Bank's e-CIB, and no default with any financial institution.

Conditions after you get the machine

• You may not sell, transfer or mortgage the machine for five years, or until the financed amount is fully repaid, without the bank's consent.
• The machine must be used only for agriculture or agricultural services.
• You must attend a training or orientation session on using and maintaining it.
• Agriculture Department and bank officials can inspect it on site from time to time.

How to apply online

1. 1Go to cmhightech.punjab.gov.pk and create an account with your CNIC and the mobile number registered in your name.
2. 2Fill in the application, choosing the machine and an approved supplier.
3. 3The bank carries out due diligence and approves or rejects the loan.
4. 4If approved, deposit your 20% equity within the stated period.
5. 5The bank pays the supplier, and the machine is delivered to you.

Check the website address

Several private websites with names like "cmhightech" copy the scheme's name and explain it with ads. They are not government websites. The only official portal is cmhightech.punjab.gov.pk, and the only official information page is on agripunjab.gov.pk. Never pay anyone other than the bank, and never pay an "agent" to get your application approved.

Frequently asked questions

Is the loan really interest-free?

Yes, for the borrower. The Punjab government pays the interest on the loan. You still pay the Rs 5,000 processing fee, your 20% equity, insurance and normal bank charges.

Can a tenant farmer apply?

A farmer applying as a farmer must own at least 5 acres. A tenant can apply as a registered service provider, but must offer alternate collateral in place of land.

Will I get the full Rs 3 crore?

Rs 3 crore (Rs 30 million) is the maximum per applicant. The bank finances 80% of the machine's price and you pay the other 20%, so the loan you get depends on what the machine costs.

Can I apply more than once?

No. Only one application is allowed per individual and per business, and an eligible applicant can use the subsidy only once during the whole programme.

Sources

• Agriculture Department, Government of the Punjab: Hi-Tech Farm Mechanization Financing Program. Eligibility, security, repayment and fees, checked 24 September 2026.
• Official application portal: cmhightech.punjab.gov.pk
• The Nation, 10 October 2025: CM Maryam launches Punjab's first-ever high-tech farm mechanization portal. Machinery list and grace period.