Union Bank of India's "Union Kisan Pushpak" Scheme: Hassle-free 'Agri Drone Financing' for Farmers
This scheme aligns with the government's commitment to modernizing agriculture, promoting technological interventions, and empowering farmers with innovative tools for efficient and sustainable farming practices.
In a significant move towards enhancing agricultural practices in India, the government has introduced the "Union Kisan Pushpak" scheme, aimed at providing financial support for the acquisition of drones for agricultural purposes. This initiative is set to benefit individual farmers, proprietorships, partnerships, companies, cooperative societies, FPOs/FPCs, and custom hiring centers engaged in agriculture activities across the country.
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Key Features of the Scheme:
* Purpose:
The scheme facilitates the purchase of drones equipped for various agricultural applications such as spraying pesticides, fertilizers, anti-locust operations, and mapping farmlands. It covers both custom hiring activities and individual farmers for their agriculture purposes.
* Eligibility:
Individuals, joint individuals, proprietorships, partnerships, companies, co-operative societies, FPOs/FPCs, and custom hiring centers are eligible to apply. Individuals must possess a remote pilot license from DGCA or an authorized training organization and have passed the class tenth examination. The age of the farmer should be between 25 to 60 years.
* Margin:
A 25% margin of the unit cost, including accessories and equipment, is required.
* Loan Amount:
Up to 75% of the unit cost, with a maximum limit of ₹12.00 Lakhs for the purchase of up to 2 drones.
* Nature of Loan:
Term loan with a maximum repayment period of 3 years.
* Security:
Hypothecation of the asset created out of bank finance is the primary security. Collateral security is required for loans exceeding ₹20.00 Lakhs, or borrowers can opt for coverage under the credit guarantee scheme of CGTMSE.
* Insurance:
The drone must be comprehensively insured in the borrower's name with a bank clause for its full cost.
* Repayment Period:
A maximum repayment period of 3 years with a monthly servicing of interest/installment, including a maximum moratorium period of 3 months.
* Special Instructions:
Strict compliance with guidelines issued by DGCA, the Ministry of Agriculture and Farmers Welfare, and any other relevant authority is mandated. The bank's name should be visibly displayed on the purchased farm equipment.
Also Read: Kotak Mahindra Bank Farm Equipment Loan: Know How To Apply?
Implementation and Compliance:
All branches across India will implement the scheme. Borrowers will be assessed based on projected cash flows from the drone activity, with due consideration for moratorium periods where necessary.
The comprehensive insurance of the drone, adherence to DGCA guidelines, and compliance with agricultural term loan conditions are crucial components of the scheme.
Additionally, a Standard Operating Procedure (SOP) for the use of drones in agriculture, as well as a model cost-benefit analysis, has been provided to guide field functionaries.
This scheme aligns with the government's commitment to modernizing agriculture, promoting technological interventions, and empowering farmers with innovative tools for efficient and sustainable farming practices. Farmers and agricultural stakeholders are encouraged to explore the benefits offered by the "Union Kisan Pushpak" scheme to propel Indian agriculture into a new era of productivity and prosperity.
Also Read: Bank of India 'Krishi Vaahan Scheme', Loan available up to 90% : Know How to Apply
