Yogi Government's Major Step for UP Farmers
In a significant move to strengthen the rural economy and make agriculture a profitable venture, the Yogi Adityanath government in Uttar Pradesh has introduced the 'Mukhyamantri Krishak Samriddhi Yojana'. Farmers often struggle with heavy loan burdens, high interest rates from private lenders, and crop failures, which sometimes push them into the category of defaulters. To address this growing concern and provide financial relief, the state government has come up with this comprehensive credit scheme.
Low Interest Rates to Combat Defaulting
While the Kisan Credit Card (KCC) scheme has benefited millions, rising defaults posed a serious challenge for banks and the administration. Under the new scheme, the Uttar Pradesh Cooperative Gram Vikas Bank will offer long-term loans up to Rs 6 lakh at an annual interest rate of just 6 percent. NABARD and other institutional loans usually carry higher interest rates ranging from 11 to 11.50 percent, making repayment difficult for small and marginal farmers.
Subsidies and Eligibility Criteria
To encourage financial discipline, the state government will provide a 5 percent interest subsidy to farmers who repay their installments within the stipulated timeframe. To be eligible for this scheme, applicants must be permanent residents of Uttar Pradesh with verifiable agricultural land records in government databases. This initiative aims to free farmers from debt traps and promote long-term capital investment in agriculture.
