A piece of good news has emerged for farmers in Uttar Pradesh before the start of 2026. The state government has taken a significant step to alleviate the financial burden associated with farming. Small and marginal farmers in the state will no longer have to pay exorbitant interest rates on agricultural loans. Under the government’s new initiative, farmers will be provided loans at an interest rate of only 6 percent, which is expected to improve their financial situation.
Decision Taken to Address Farmers’ Financial Challenges
Farmers in the state have long been facing the problem of high-interest rates. The high interest paid on loans taken for farming often consumed a large portion of their income. Furthermore, adverse weather conditions, natural disasters, and crop losses exacerbated the farmers’ difficulties. Keeping these problems in mind, the Uttar Pradesh government has decided to implement this new system.
Chief Minister’s Krishi Samriddhi Yojana
Chief Minister Yogi Adityanath has announced that this facility will be provided under the Chief Minister’s Krishi Samriddhi Yojana (Chief Minister’s Agricultural Prosperity Scheme). The objective of this scheme is to empower farmers financially and relieve them from the burden of debt. Small and marginal farmers, who are forced to cultivate with limited resources, will directly benefit from this scheme.
Relief for Farmers from High-Interest Rates
Currently, agricultural loans provided through the Uttar Pradesh Cooperative Rural Development Bank carry an interest rate of approximately 11.5 percent. This made it very difficult for farmers to repay their loans. The government is now changing this system so that farmers can access loans at affordable rates. Under the new scheme, small and marginal farmers will be provided loans through the Land Development Bank at an interest rate of only 6 percent.
Boost to Agriculture, Increased Confidence Among Farmers. This decision by the government will reduce the financial burden on farmers, allowing them to make investments in agriculture without any pressure. Access to loans at low-interest rates will enable farmers to invest in modern agricultural techniques, seeds, and resources. This is expected to increase agricultural productivity and improve farmers’ income.