Uttar Pradesh Farmer Schemes: Kisan Credit Card and More

Agriculture is the major component of the economy of Uttar Pradesh, with millions of farmers involved in the agricultural economy of the state. In order to improve the economic viability for the farmers in this state, the Uttar Pradesh government has launched several schemes to benefit farmers in collaboration with the government of India. The Kisan Credit Card (KCC) is one of the most important schemes to provide affordable credit to farmers. In this article, we will discuss the KCC scheme, important Uttar Pradesh farmer schemes, benefits of the schemes, eligibility criteria and application processes so farmers can make better decisions about improving their economic viability.

What is the Kisan Credit Card (KCC) Scheme?

The Kisan Credit Card (KCC) scheme was launched in 1998 by the Government of India to ensure timely and sufficient credit is available to farmers for agriculture and agricultural-related activities. In Uttar Pradesh, the KCC scheme has gained much momentum, with more than 1.19 lakh farmers benefitting from the KCC scheme in Ayodhya alone by December 2024. The Kisan Credit Card provides revolving cash credit with a limit up to ₹3 lakh to farmers for crop cultivation, post-harvest requirements, and expenses related to the farm. 

The loan that can be raised through KCC is up to the limit of ₹3 lakh with an interest rate of 7% on the loan amount. The interest can be reduced to 4% with prompt repayment incentives (PRI) of 3% for timely repayment. The loan limit for allied activities, such as fisheries, extended to ₹2 lakh in 2025 to make it more inclusive, available to all farmers.

Key Features of Kisan Credit Card in Uttar Pradesh

• Flexible Credit Limit: Loans up to  ₹3 lakh for crop cultivation and ₹2 lakh for allied activities such as fisheries and animal husbandry.
• Low-Interest Rates: 7% pa, which can be reduced to 4% if repaid on time.
• Collateral-Free Loans: Loans up to ₹2 lakh are collateral-free thus facilitating borrowing for small and marginal farmers.
• Digital KCC: Banks (for instance Union Bank of India) offer Digital KCC which can reduce the loan processing time to less than 15 minutes.
• ATM-Enabled RuPay Card: Farmers receive a debit card to make transactions seamless.

Other Key Uttar Pradesh Farmer Schemes

Beyond KCC, Uttar Pradesh offers a range of schemes to support farmers’ financial and agricultural needs. Below are some prominent ones:

1.PM-KISAN Samman Nidhi

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme provides ₹6,000 each year to qualifying farmers in three separate payments. In Uttar Pradesh, the PM-KISAN scheme has been integrated with the AgriStack UP 2025 portal to allow farmers to register and verify their land records digitally, allowing for a seamless transfer of subsidies via Direct Benefit Transfer (DBT).

2.Pradhan Mantri Fasal Bima Yojana (PMFBY)

This scheme of insurance for crops protects farmers from natural calamities, pests or diseases. Farmers pay a nominal emolument, being 2% on kharif crops, 1.5% on rabi crops, while the government pays the rest. In Uttar Pradesh, the crop insurance is linked with KCC, so they can access the insurance very smoothly.

3. AgriStack UP 2025

The AgriStack UP 2025 initiative has assigned farmers a unique Farmer ID associated with their Aadhaar Id and land records. Through the portal (upfr.agristack.gov.in), farmers can apply for KCC, PM-KISAN, and crop insurance without travelling to government offices. Digital technology has made the application process for several schemes easy.

4. Modified Interest Subvention Scheme (MISS)

Approved for 2025-26, MISS ensures attractive credit through KCC, with a 1.5% interest subvention to banks, which essentially keeps the effective interest rate low for small and marginal farmers. The continuation of the scheme will involve an outgo of ₹15,640 crore from the exchequer.

5. Eligibility for Kisan Credit Card in Uttar Pradesh

In order to qualify for the KCC scheme, farmers need to meet the following eligibility criteria:

• Individual Farmers: Owner-cultivators, tenant farmers, oral lessees, or sharecroppers.
• Groups: Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers.
• Land Ownership: Proof of landholding as sanctioned by the revenue authorities.
• Documents: Aadhaar card, address proof, land records, and cropping pattern details.
• Age: No upper age limit is prescribed; however, the applicant must be indulging in agriculture or allied activities.

How to Apply for Kisan Credit Card in Uttar Pradesh

Farmers can apply for KCC in online or offline mode:

1. Online Application

•  Visit the PM-KISAN portal or the website of the concerned bank –  SBI, Union Bank, Bank of Baroda etc.
•    Download the KCC application form. Prepare and submit along with required documents.
•     Complete the agristack UP portal for the digital registration and verification.

2. Offline Application

• Necessary documentation (passport-size photograph, adhaar number, I/D land proof etc) visit a nearby bank branch (SBI, Canara Bank, Cooperative banks etc).
• The concerned bank will process the application in 15 days.

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Benefits of Kisan Credit Card for Uttar Pradesh Farmers

The KCC scheme provides many advantages too.

• Access to Credit at Point of Sale: Funds are available at the time of purchasing seeds, fertilizers, and pesticides.
• Post Harvest Coverage: Coverage of expenses incurred after harvesting so farmers do not have to distress sell.
• Low Cost Credit: Interest charged at 4% encourages farmers to repay on time.
• Insurance Coverage: KCC holders are insured under the Farmer Accident Insurance Scheme and the PMFBY.
• Flexibility of Loan Usage: No obligation to deplete the account balance to zero for farmers to continue having access to funds.

Challenges and Solutions for Uttar Pradesh Farmers

Even with benefits, farmers are facing barriers to avail of the schemes:

• Awareness: Many farmers, particularly in rural areas, had no idea that digital platforms such as AgriStack exist.
• Documentation Complications: Land records mismatch can create delays in approvals.
• Technical Glitches: Errors logging into portals or delays in payment can discourage farmers.

Solutions:  

• The helpline in AgriStack can help farmers with registrations and can help troubleshoot issues.
• Banks are working towards demystifying documentation (Digital KCC; and others).
• Uttar Pradesh, Agricultural Department awareness campaigns will allow a marginally greater outreach.

Impact of Farmer Schemes in Uttar Pradesh

The Kisan Credit Card (KCC) and other programs have revolutionized agriculture in Uttar Pradesh. 

• Currently, over 4.48 lakh farmers are registered under KCC in Ayodhya alone, with 1.10 lakh farmers in Ayodhya already receiving loans at the enhanced limit in 2025. 
• In addition, PM-KISAN has provided ₹6,000 per year in payments to millions of farmers, adding to their income. 
• More than 50% of farmers in Uttar Pradesh have their land records digitized through the AgriStack, simplifying and streamlining their access to government schemes.

Farmer holding Kisan Credit Card

Future of Farmer Schemes in Uttar Pradesh

The government of Uttar Pradesh aims to improve farmer welfare. The budget for 2025-26 included an increase in the KCC loan limit and an extension to MISS that will help ensure low-cost credit for all farmers. The AgriStack portal is expected to reach 100% of farmers by 2026, which will mean seamless access to schemes for farmers. The incorporation of AI based crop advisories and platform for market linkage will further support farmers.

Conclusion

The government of Uttar Pradesh aims to improve farmer welfare. The budget for 2025-26 included an increase in the KCC loan limit and an extension to MISS that will help ensure low-cost credit for all farmers. The AgriStack portal is expected to reach 100% of farmers by 2026, which will mean seamless access to schemes for farmers. The incorporation of AI based crop advisories and platform for market linkage will further support farmers.