Farmer Loan Scheme: There’s great news for small and marginal farmers in Uttar Pradesh. Chief Minister Yogi Adityanath has reduced the interest rate on loans under the Chief Minister Krishak Samriddhi Yojana (Chief Minister Farmer Prosperity Scheme) to 6%. Previously, the interest rate on loans under this scheme was 11 to 11.5%. Under this scheme, farmers can avail loans for a period of 3 to 15 years. This announcement was made on December 21, 2025, during an event in Lucknow. With this new rate, farmers have received significant relief even before the start of 2026.
Farmers can avail loans under this scheme from the branches of UP Cooperative Gram Vikas Bank Limited. The objective of the scheme is to provide easy and affordable financial resources to small and marginal farmers for agricultural activities.
Read Here: Toll Tax Offers Earning Opportunities for the General Public – Government Opens a New Avenue
For What Purposes Can the Loan Be Used?
UP Cooperative Gram Vikas Bank provides loans to farmers through various schemes. Registered farmers can avail the benefits of this scheme. If you haven’t yet obtained a Farmer ID, it is necessary to get one first. Under this scheme, farmers can avail loans for agricultural work, crop seeds, equipment, irrigation, manure, urea, subsidies, and other farming-related expenses. There is also a provision for an additional 1% interest rate concession for women farmers under this scheme.
How to Apply for a Loan Under the Chief Minister Krishak Samriddhi Yojana
Step 1:
The farmer has to obtain an application form from any branch of the cooperative bank for Rs. 200. The form needs to be filled out with the farmer’s photograph and necessary information. The latest land records (Khasra-Khatauni) and other documents must be submitted along with the form. Upon submission of the form, a membership fee of Rs. 3 and an advance assurance amount of Rs. 100 are required.
Step 2:
The bank officials verify the application form and evaluate the project. If found correct, the loan amount is sanctioned, and a Loan Sanction Order (LSO) is issued. Small and marginal farmers have to deposit 5% of the loan amount as margin money, while for other farmers, it is 6%. For example, on a loan of ₹1 lakh, a small farmer will only have to deposit ₹5,000.
An administrative fee is also charged: small and marginal farmers will pay 0.5% or ₹1,000 (whichever is less), and other farmers will pay 1% or ₹2,000 as an administrative fee. Two witnesses will also be required for the loan.
Documents required for the loan:
Application form
Land records (Khasra, Khatauni, or Kisan Bahi) for the current crop year
Two passport-size photographs of the farmer
Aadhaar card
Ration card
KYC form from the bank
Related Posts
Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
Related Stories
Business
Business
Business
Business
Business
Business
Business
Business
Business
Business