On Wednesday, Chief Minister Yogi Adityanath launched agricultural loans to small and marginal farmers at a six percent interest rate under Mukhyamantri Krishak Samriddhi Yojana of Uttar Pradesh Government.
Loans from the Uttar Pradesh Cooperative Village Development Bank, which were previously offered at 11 to 11.50 percent interest, will now be available at a six percent interest rate. The Government has allocated Rs 384 crore for the scheme.
The Chief Minister launched the scheme from his official residence at 9:30 a.m. Farmers will be able to take long-term loans of up to six lakh rupees from the Cooperative Village Development Bank at a 6 percent interest rate. Old borrowers who regularly repay their loans will also benefit from the interest subsidy. Loan approval will be through an online portal. The scheme aims to benefit five lakh farmers over five years.
About the Scheme
Under the scheme, eligible farmers can avail long-term agricultural loans of up to ₹6 lakh through U.P. Sahkari Gram Vikas Bank Ltd.. To reduce the financial burden on farmers, the state government will provide an interest subsidy of up to 5%, while the concessional loan interest rate has been fixed at 6% per annum. The initiative aims to encourage productive investments in agriculture rather than limiting support to seasonal farming expenses.
Benefits of Scheme
- Long-term agricultural loans up to ₹6 lakh.
- Concessional interest rate of 6% per annum.
- Interest subsidy of up to 5% from the Uttar Pradesh Government.
- Supports creation of long-term agricultural assets.
- Can be used for irrigation, farm development, and allied activities.
- Improves access to institutional agricultural credit.
- Designed primarily for small and marginal farmers.
- Promotes rural self-employment and income generation.
- Strengthens the cooperative agricultural credit system.
- Facilitates investment in modern farming infrastructure.
Eligibility
- Applicant must be a resident farmer of Uttar Pradesh.
- The scheme is primarily intended for small and marginal farmers.
- Applicant should be eligible for long-term agricultural credit through the cooperative banking system.
- Farmers must fulfill the loan sanction conditions prescribed by U.P. Sahkari Gram Vikas Bank Ltd.
- Land ownership or cultivation-related requirements may apply as per final guidelines.
- Applicant must comply with repayment and subsidy conditions notified by the government.
- Additional eligibility criteria will be applicable after official scheme guidelines are released.
Documents Required
- Aadhaar Card.
- PAN Card (if applicable).
- Residence Proof.
- Passport-size Photograph.
- Land Records (Khatauni/Khasra or related documents).
- Bank Account Passbook.
- Proof of Small or Marginal Farmer Status.
- Loan Application Form.
- Details of the proposed agricultural activity.
- Existing loan information, if applicable.
- Any additional documents required by the financing bank.
