Can I take a bank loan for my PM-KUSUM farmer share and does the pump count as collateral?

Yes, the PM-KUSUM design specifically allows the farmer share, the roughly 40 percent balance after central and state subsidy, to be part funded by a bank loan, so you do not always have to pay the whole share upfront from your own pocket. In practice the farmer share is meant to break into a small upfront contribution and a loan for the rest, with the subsidy covering the larger part of the cost. Banks treat it like an agri term loan, so they will look at your land, your repayment capacity, and your existing borrowings, and the solar pump system itself is usually treated as part of the asset created. Whether additional security is needed depends on the loan amount and the bank, and smaller amounts are often handled more simply. A few cautions. The availability and terms of such loans vary by bank and state, and not every branch is familiar with the scheme, so it helps to apply through a bank that the nodal agency works with. Make sure the loan and the subsidy timing line up, because in some states the subsidy is adjusted directly and you only finance the net share. And borrow only what you genuinely need by sizing the pump correctly, since a smaller benchmark means a smaller share and a smaller loan. Confirm the current loan tie ups and the exact upfront versus loan split with your state nodal agency and your bank before committing.