Custom Hiring Centre for ₹15.5 lakh: Cost & Subsidy (2026)

As per the government model report, the basic Custom Hiring Centre (1 tractor set) costs ₹15.5 lakh. A centre that rents out tractors and farm machines. 3% interest relief (AIF), no subsidy; your shar

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Custom Hiring Centre for ₹15.5 lakh, 3% interest relief
Custom Hiring Centre · Basic unit
₹15.5 lakhto start
1 tractor setCapacity
3%Interest relief
~3.4 yrsPayback
In 60 words

As per the government model report, the basic Custom Hiring Centre (1 tractor set) costs ₹15.5 lakh. A centre that rents out tractors and farm machines. 3% interest relief (AIF), no subsidy; your share is about ₹1.55 lakh, the rest is a bank loan. In year 3, sales are about ₹11.1 lakh with net profit ~19% of sales (estimate).

Source: NABARD Model Scheme – Agricultural Machinery Custom Hiring… · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹15.5 lakh

₹1.55 lakhYour share10%
₹13.9 lakhBank loan90%

From your pocket only ₹1.55 lakh — the rest is a bank loan with 3% interest relief.

What does the money go into?

  • Building/civil₹2.25 lakh
  • Machinery₹13.3 lakh

02Income over 5 years

Yearly sales (blue bar) · Net profit (green)

Year 1
₹7.82 lakh
Loss ₹17 thousand
Year 2
₹10.7 lakh
Profit ₹1.9 lakh
Year 3
₹11.1 lakh
Profit ₹2.14 lakh
Year 4
₹11.4 lakh
Profit ₹2.38 lakh
Year 5
₹11.7 lakh
Profit ₹2.62 lakh

net profit ~19% of sales · payback ~3.4 years · Includes interest, depreciation and a 5% yearly rise in costs.

035 steps to start

  1. Get trainedLearn the work, find buyers
  2. Prepare the siteShed/room, power, water
  3. Get a DPR madeProject report as the bank needs it
  4. Apply for bank loan3% interest relief (AIF), no subsidy
  5. Produce and sellIncome starts from year 1
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04Who is it right for?

People with a trusted network in the village or cluster
People who can run and repair machines
FPOs and farmer groups

053 mistakes that cause losses

Machines standing idle outside the season
Not adding driver and repair costs
Renting on credit

06Frequently asked questions

Is there any other scheme for a CHC?

Also check your state's farm mechanisation scheme (SMAM) separately.

What government support is there for the Custom Hiring Centre?

No direct subsidy; 3% yearly interest relief on loans up to ₹2 crore (up to 7 years) plus credit guarantee.

How much can the Custom Hiring Centre earn?

In the government model, year-3 sales are about ₹11.1 lakh with net profit ~19% of sales; payback ~3.4 years.

Custom Hiring Centre — Want to start?

Tell us your district and budget — an expert will suggest the next step for free.

Chat on WhatsApp+91 86250 77758Full details →

Learn first: ₹99 masterclass · Instagram · Facebook · YouTube

Source: NABARD Model Scheme – Agricultural Machinery Custom Hiring… · AIF – Agriculture Infrastructure Fund
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.

Utkrishi Team

Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 86250 77758