2 weeks ago
UP Farmers Get 6% Long-Term Loans Under Krishak Samriddhi Yojana
Uttar Pradesh is offering some farmers long-term loans at a lower interest rate.
The new rate is 6% under the Chief Minister Krishak Samriddhi Yojana.
Farmers can use the money to buy tractors, machines, or pay for other major farm needs.
Earlier, these loans could carry interest rates as high as 18%.
Lower interest means farmers may have to pay less extra money on their loans.
For example, interest on a ₹10 lakh loan could be ₹60,000 for one year at 6%.
The government says the program will especially help small and marginal farmers.
It hopes to provide this loan facility to five lakh farmers over the next few years.
Uttar Pradesh has reduced interest on long-term agricultural loans to 6% under the Chief Minister Krishak Samriddhi Yojana.
The loans are provided by the Uttar Pradesh Cooperative Rural Development Bank, also known as LDB.
The interest rate had previously fallen from 18% to 14% and then to around 11%.
A ₹10 lakh loan at 6% would carry ₹60,000 in simple interest for one year, compared with ₹1.10 lakh at 11%.
Chief Minister Yogi Adityanath aims to connect five lakh small and marginal farmers with the facility over the next few years.
- Who
- Chief Minister Yogi Adityanath and the Uttar Pradesh Cooperative Rural Development Bank are providing the loan facility to small and marginal farmers.
- What
- Long-term agricultural loans are being offered at a 6% interest rate under the Chief Minister Krishak Samriddhi Yojana.
- Where
- Uttar Pradesh, with the launch program held in Lucknow.
- When
- The scheme was launched on September 23; the year is not specified.
- Why
- To make capital for agricultural machinery and other major farm investments more affordable and reduce farmers’ interest burden.
Key facts
- Scheme
- Chief Minister Krishak Samriddhi Yojana
- New interest rate
- 6% on long-term loans
- Lending institution
- Uttar Pradesh Cooperative Rural Development Bank, also known as LDB
- Previous rates
- The rate had earlier been reduced from 18% to 14% and then to around 11%
- Target beneficiaries
- Small and marginal farmers
- Planned reach
- Five lakh farmers over the next few years
- Example savings
- On a ₹10 lakh loan, one-year simple interest is ₹60,000 at 6% versus ₹1.10 lakh at 11%
Sources
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