UPI Loan for Farmers! SBI may allow Farmers to withdraw KCC Loan Amount via UPI, SBI working on New Technology

State Bank of India (SBI) Chairman CS Setty announced that the bank is exploring the possibility of allowing farmers to access credit through the Unified Payments Interface (UPI), particularly via Kisan Credit Cards (KCC). Speaking at the Global Fintech Fest, Setty said this initiative aims to make credit access as seamless as digital payments in India.

“With predictive AI models, we can provide pre-approved small-value loans to millions of customers. The challenge, however, is not just disbursal — it’s collections,” Setty said.

A KCC loan, or Kisan Credit Card loan, is a special type of loan designed to provide farmers with easy and affordable access to credit for their agricultural needs. The Kisan Credit Card (KCC) scheme was introduced by the Government of India and the Reserve Bank of India (RBI) in 1998 to provide loans to Farmers.

Right now, a farmer can apply for KCC Loan in SBI or any other bank in India and can easily get loan. But the process is manual and Farmer needs to visit branch of the bank and complete formalities. Moreover after the loan is sanctioned, Farmer needs to visit the branch each time to withdraw cash from KCC loan account. Now, SBI is planning to allow the linking of Kisan Credit Card (KCC) loan accounts with UPI. Through this integration, farmers will be able to withdraw money anytime, conveniently and securely, using the UPI platform. This technology will be highly beneficial for farmers if implemented in correct manner.