How farm subsidy payment works, reimbursement versus upfront for machinery and drip.
Do I need to pay the full cost first and get subsidy later?
IIqbal8mo ago · 223 views
3 Answers
🌾Farmer.in Krishi TeamExpert ✓7mo ago
In most machinery, drip and polyhouse schemes the subsidy is paid by reimbursement, which means you first buy or install the item from an approved vendor after getting your sanction letter, then the subsidy amount is credited to your bank account once a field inspection confirms it. So you do need to arrange the full cost upfront, either from savings or a bank loan, and the subsidy share comes back later. For solar pumps under PM-KUSUM the model is different, since bank finance lets you pay only a small upfront share. Plan your cash flow for this gap, and always keep the original bills, the e-bill and photos for the verification.
RReshma7mo ago
Yes, I had to pay the full drip cost first and the subsidy came after inspection. I took a short KCC top-up to manage the gap. Keep every bill because the inspector checks the invoice and the GST e-bill.
TTejpal7mo ago
Talk to your bank before you are selected so the loan is ready to release the moment your sanction comes. Many sanctions have a short deadline to buy, and arranging finance from scratch after selection can make you miss it. Mine was pre-approved so I paid the dealer the same week.