Apply for Punjab's Hi-Tech Farm Mechanization Loan: Interest-Free Up to Rs 30 Million, 20% Equity

Short answer: Punjab's Hi-Tech Farm Mechanization Financing Programme gives interest-free loans of up to Rs 30 million for 12 listed machines. You apply on the programme portal, pay 20 percent of the machine cost yourself, and repay the rest in 20 equal quarterly instalments. The Punjab government pays the interest.

A farmer near Bahawalpur wants a wheat combine harvester but cannot find Rs 20 million, and bank interest would eat the saving. A scheme with no interest looks too good. So we opened the programme's own pages and read the rules line by line.

We read the programme portal and the Punjab Agriculture Department's programme page on 13 October 2026. The portal shows a helpline, a registration form and a supplier list, but no closing date. The two pages differ on one rule, the age limit, and we flag that below.

The loan is interest-free and capped at Rs 30 million

The portal says the scheme offers interest-free loans of up to PKR 30 million for hi-tech mechanization, through Bank of Punjab, for farmers, service providers and entrepreneurs. The Government of Punjab bears the interest cost. You repay only the financed amount.

You pay a Rs 5,000 initial application processing fee. The portal says other bank charges apply as per the bank's policy, and late instalments carry late payment charges under the bank's schedule.

The loan covers 80 percent of the machine. You deposit at least 20 percent of the cost as equity, within the time the bank sets. By our arithmetic, a Rs 30 million loan therefore fits a machine of up to Rs 37.5 million. The bank pays the approved supplier directly.

Only 12 machines qualify

The portal restricts funds to 12 listed machines, local or imported. Anything off the list is not financed. Check your machine against the table below before you spend time on documents.

This scheme is separate from the cheaper schemes for smaller machines and the tractor ballot. The differences are set out in which Punjab farm machinery subsidy fits you, and the tractor route is in how to apply for the Green Tractor scheme.

Check the eligibility rules first

The portal sets conditions that cut out many applicants. A farmer needs at least 5 acres of owned land. An entrepreneur needs a valid NTN. A service provider must be registered with the department's Field Wing. You must live in Punjab, hold a CNIC, and have a mobile number registered in your own name.

The two official pages disagree on age. The department page says 21 to 65 years. The portal says 21 to 70 years. We could not tell which is current, so check the age rule on the portal when you register, or ask on the helpline.

You also need a clean credit history with no overdue loans, and a clean record on the Kissan Card and the State Bank's e-CIB. Registration with the FBR is required before the loan is approved. Only one application is allowed per person or business, and one subsidy per applicant for the whole project period.

Follow the four portal steps

The portal lays out the steps in order. Gather your documents first, because the bank asks for a verified land ownership record, such as a fard or intiqal. The land fard is explained in how to read a land fard.

1. Register with your CNIC and mobile number, and choose your category: farmer, service provider or entrepreneur.
2. Fill in the online form and select the machine you want.
3. Upload the required documents in the format and size the portal asks for.
4. Review everything and submit the application.

The bank then does its checks and approves or rejects the loan. If approved, you deposit your 20 percent equity, and the loan goes straight to the selected supplier.

Know what you sign up to

The machine itself is the main security and stays hypothecated, meaning pledged, to the bank until the loan is repaid. You give a personal guarantee, buy comprehensive insurance at your own cost, and sign an undertaking. Landless service providers must offer other collateral, such as property.

You may not sell, transfer or mortgage the machine for 5 years or until the financed 80 percent is repaid, and not without the bank's consent. You must use it only for farming or service work, attend training, and accept visits from the department and the bank.

Repayment is in 20 equal quarterly instalments, which is five years. The bank tests your ability to pay quarterly before approval, so read the repayment amount before you commit to an expensive machine.

Common questions

Is the loan really interest-free?

Yes, for the borrower. The portal says the Government of Punjab bears the interest cost. You still pay a Rs 5,000 processing fee and the bank's other charges.

How much must I pay up front?

At least 20 percent of the total machine cost, as equity, within the time the bank sets. The bank finances the other 80 percent.

Can I use the loan for a car or a small tractor?

No. Funds are restricted to the 12 listed machines, and the tractor on the list is a high power tractor above 85 HP.

What is the helpline?

The portal shows the helpline 080017000. We did not call it, so confirm the age rule and the current opening dates there.

How long is the repayment period?

Twenty equal quarterly instalments, which is five years. The machine cannot be sold or transferred during that time without the bank's prior consent.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on 13 October 2026, Pakistan time. We read the Hi-Tech Farm Mechanization portal and the Punjab Agriculture Department's programme page. We saw no closing date, did not register on the portal and did not call the helpline. The age limit differs between the two pages, and we have said so rather than choosing one.