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Prime Minister’s Employment Generation Programme (PMEGP)

PMEGP: Empowering Entrepreneurs with Loans & Subsidies

Posted on: by: Aditya Narayanin: Govt. SchemesLeave a reply

Prime Minister’s Employment Generation Programme (PMEGP)

The Prime Minister‘s Employment Generation Programme (PMEGP) is an innovative initiative of Government of India, to promote commitment and provide sustainable livelihoods to both rural and urban areas. Launched in 2008, PMEGP was established to merge the two former schemes of the Prime Minister‘s Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP) to promote financial assistance through credit linked subsidies to establish micro-enterprises in the non-farm sector. The PMEGP is administered through the Ministry of Micro, Small and Medium Enterprises (MoMSME). 

Although PMEGP provides financial assistance across India, the Programme is administered at the national level by the Khadi and Village Industries Commission (KVIC) while at the State level through the Directorates of KVIC, the State Khadi and Village Industries Boards (KVIBs) and the District Industries Centres (DICs).

This article provides insights into the workings of PMEGP, including eligibility, loan details, PMEGP online application status, and the PMEGP loan rate of interest for prospective entrepreneurs in India.

What is PMEGP?

The Prime Minister‘s Employment Generation Programme (PMEGP) aims to help unemployed youth, traditional artisans, and first-generation entrepreneurs for financial help to set up micro enterprises. This is facilitated by providing loans with subsidized rate of interest to create self-employment and lower dependency on informal lenders. As on 31st March 2023, PMEGP supported 8.58 lakh enterprises providing on to approx. 70 lakh jobs with an outlay of ₹2,700 crore for the 2023-24 financial year. 

The scheme covers the entire economy, both rural and urban, but has a passion to encourage rural development to reduce migration to urban areas. All sectors are supported – except the negative list of meat processing businesses, liquor related businesses and few agricultural activities.

Objectives of PMEGP

The Prime Minister‘s Employment Generation Programme has established goals as follows: 

  • Employment Generation: Generate sustainable job opportunities in both rural and urban areas through micro-enterprises.
  • Artisan Support: Increase the ability of traditional artisans and unemployed to earn.
  • Entrepreneurial Development: Enhance opportunities for first-generation entrepreneur businesses to thrive.
  • Reduce Migration: Provide local livelihoods to decrease migration from rural to urban.

The PMEGP, by meeting the goals outlined above, will contribute to the economic development of India and regional development.

Eligibility Criteria for PMEGP

To be eligible for the PMEGP, applicants must be classified as follows:

  • Individuals: Must be over the age of 18. Applicants should have passed the minimum VIII standard if they are applying for a project over ₹10 lakh (manufacturing) or ₹5 lakh (business/service sector).
  • Institutions: Self-Help Groups (SHGs), societies registered under the Societies Registration Act of 1860, production-oriented co-operative societies, and charitable trusts.
  • Exclusions: Existing units that were established with support from PMRY, REGP, or other Government schemes, or which have benefited through subsidies from other Central/State Schemes.
  • Project Limits: Should not exceed ₹1 lakh per capita in plain areas and ₹1.5 lakh per capita in hilly areas.

Only one person per family (self and spouse) can claim the scheme.

Loan Details and Subsidy Structure

The PMEGP loan is a credit-linked subsidy programme, with the following financial structure:

Category

Maximum Project Cost

Subsidy (Rural)

Subsidy (Urban)

Own Contribution

Manufacturing Sector

₹50 lakh

35% (Special), 25% (General)

25% (Special), 15% (General)

5% (Special), 10% (General)

Business/Service Sector

₹20 lakh

35% (Special), 25% (General)

25% (Special), 15% (General)

5% (Special), 10% (General)

Second Loan (Upgradation)

₹1 crore (Manufacturing), ₹25 lakh (Service)

₹15 lakh (Manufacturing), ₹3.75 lakh (Service)

₹20 lakh (NER/Hill States)

As per bank terms

  • Special Category: Includes SC/ST, OBC, women, minorities, ex-servicemen, physically handicapped, and those in North Eastern Region (NER), hill, and border areas.
  • Repayment Period: 3–7 years after a moratorium period, as decided by the lending bank.
  • Collateral: Loans up to ₹10 lakh are collateral-free and covered under the Credit Guarantee Fund for Micro and Small Enterprises (CGFMU/CGTMSE).

The PMEGP loan rate of interest typically ranges between 11% and 12%, aligning with regular Micro and Small Enterprises (MSE) loan rates. However, specific rates depend on the lending institution’s policies.

PMEGP Online Application Process

Applying for a PMEGP loan is straightforward through the official PMEGP e-portal (kviconline.gov.in). Here’s a step-by-step guide:

  1. Visit the Portal: Go to kviconline.gov.in and select “Prime Minister Employment Generation Programme” or “PMEGP ePortal.”
  2. Choose Application Type: Click on “Online Application Form for Individual” or “Non-Individual” as applicable.
  3. Fill Details: Provide personal, project, and financial details, including Udyog Aadhaar Memorandum (UAM) registration.
  4. Submit Documents: Upload required documents like Aadhaar, PAN, educational certificates, project report, and caste certificate (if applicable).
  5. Submit Application: Review and submit the application to the nearest KVIC, KVIB, or DIC office.
  6. Track Status: Check the PMEGP online application status on the portal using your application ID.

Applications can also be submitted physically at implementing agency offices. A mandatory two-week Entrepreneurship Development Programme (EDP) training is required post-approval.

MEGP online application on a laptop

Checking PMEGP Online Application Status

To track status of your PMEGP application online, please do the following:

Go to kviconline.gov.in

  • Go to “PMEGP ePortal” click on “Track Application Status”
  • Enter Application ID and registered mobile number.
  • You can view the status of your application which can be under stages such as; Under Review, Sanctioned, Disbursed, etc.

 An e-tracking application to enable transparency about the application process and to keep applicants well-engaged and educated about their application progress.

PMEGP Loan Rate of Interest

The PMEGP loans have different interest rates depending on the bank, and the average rates of 11% to 12% are in line with regular MSE loans. For example, State Bank of India (SBI) charges PMEGP loans at an effective rate of 12.15% (EBLR + 3.25%). Some banks can provide concessional rates for specific categories, for example SC/ST or women, as low as 5% for different schemes like artisan loans. Subsidy eases effective repayment because this will be adjusted after a three-year lock-in period.

If you want to know more about Pradhan Mantri Mudra Yojana read this our insightful article. 

Benefits of PMEGP

Benefits of the PMEGP are manifold:

  • Subsidized Loans :  The substantial real term up to 35% subsidy is minimized the financial commitment for entrepreneurs.
  • Collateral-free Loans :  Loans of up to ₹10 lakh do not need collateral alleviating access to capital.
  •  Wide Coverage :  Loans for any industry areas including manufacturing, and retail (except listed negative lists).
  •  Rural Growth :  Increased subsidies for project implementation in rural areas enhances entrepreneurship.
  • Job Creation :  Generates holistic jobs as sustainable skilled employment especially for artisans and young people.

With its wide-applicability, PMEGP is a core element of the MSME ecosystem in formally benefitting entrepreneurs and enabling more people to participate in the economy.

Artisans collaborating in a rural workshop under PMEGP scheme

Challenges and Considerations

While PMEGP has several benefits, some of its limitations are:

  • Limited Funding : The project cost ceilings may affect larger projects.
  • Documentation: The level of detail in project reports and compliance may be overwhelming for truly novice entrepreneurs.
  • Awareness: There is often a lack of knowledge about the scheme‘s benefits among eligible candidates in rural regions.
  • Negative List: Some sectors, such as liquor or tobacco-related business, are not eligible, restricting the scope.

Some of these challenges could be resolved by seeking advice and clarification from the KVIC or DIC offices in addition to using information and guidance from online resources.

How PMEGP Stands Out

PMEGP (Prime Minister’s Employment Generation Programme) is different from other schemes like the MUDRA loan or Standup India because it focuses on micro-enterprises and offers substantial subsidies. While MUDRA loans offer loans up to ₹10 lakh without subsidies, PMEGP offers higher limits up to ₹50 lakh with margin money support. The thrust of PMEGP on rural development and improvement of artisans who mostly run micro-enterprises makes it apt for small-scale entrepreneurs.

Also read our detailed guide here to understand how collateral-free loans under the Pradhan Mantri Mudra Yojana (PMMY) are helping small businesses.

Success Stories

PMEGP has changed lives throughout India. For example, a women-led SHG in Assam set up a handloom unit with a ₹20 lakh PMEGP loan, hired 15 local artisans, and became profitable two years later. Likewise, a young entrepreneur in Tamil Nadu has set up a food processing unit – using a ₹15 lakh PMEGP loan – and employed 10 workers. These examples demonstrate PMEGP‘s power at the grassroots level for entrepreneurship.

Conclusion

The Prime Minister‘s Employment Generation Programme (PMEGP) is a game-changer for aspiring entrepreneurs in India. As a micro–business perspective, PMEGP provides you with low interest loans, generous subsidies all with a focus on sustainable employment. Imagine bringing your business ideas to life. For individuals and applicants who wish to apply, PMEGP provides an e-portal for new applications and monitoring PMEGP online application status. A PMEGP loan typically has a rate of interest between 11% and 12% found between banks and financial institutions but can provide generous subsidies for micro-businesses.

The PMEGP programme may be useful for unemployed youth, traditional artisans or first-time entrepreneurs. To get started, take a look at kviconline.gov.in to apply and it all starts with your mind state on the journey to financial independence.

Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana (PMMY): Empowering Small Entrepreneurs

Posted on: by: Aditya Narayanin: Govt. SchemesLeave a reply

Pradhan Mantri Mudra Yojana (PMMY): Empowering Small Entrepreneurs in India

The Pradhan Mantri Mudra Yojana (PMMY) , launched on April 8, 2015, by Prime Minister Narendra Modi, is a flagship scheme to empower small and micro entrepreneurs across the country. PMMBY provides collateral-free loans of up to ₹20 lakh to help non-corporate, non-farm businesses with micro, small, and medium enterprise (MSME) and self-employment requirements, in the areas of manufacturing, trading, services, and allied agricultural activities.

 This flagship scheme has achieved remarkable success in enabling financial inclusion of millions of small entrepreneurs into the formal financial system while promoting self-employment and economic growth through support for entrepreneurship. The Mudra scheme, as of 2025, has sanctioned over 28.68 crore loans with a loan amount of ₹14.96 lakh crore, providing a positive influence to millions of people in rural areas and diverse marginalized groups.

What is Pradhan Mantri Mudra Yojana (PMMY)?

The Pradhan Mantri Mudra Yojana envisions to finance the unfunded and fund micro and small enterprises through the Micro Units Development and Refinance Agency Ltd. (MUDRA). MUDRA acts as a non-banking financial company (NBFC). A refinance institution for banks, microfinance institutions (MFIs) and NBFCs that subsequently lend to eligible borrowers. The scheme is meant for individuals and businesses that have plans to generate income but do not have easy access to funds, with a credit delivery mechanism that ensures credit at affordable terms without collateral.

PMMY categorizes loans into four segments: Shishu, Kishore, Tarun, and the newly introduced Tarun Plus, each tailored to different stages of business growth. The scheme has been instrumental in empowering women and marginalized groups, with 69% of loan accounts held by women and 51% by SC/ST/OBC entrepreneurs as of December 2024.

PMMY groups the loans into four categories: Shishu, Kishore, Tarun, and Tarun Plus (the most recent), which covers different stages of business growth. The Loans have been effective in supporting women and marginalized groups, as of December 2024 69% of all loan accounts were held by women 51% by SC/ST/OBC entrepreneurs. 

Categories of PMMY Loans

The Pradhan Mantri Mudra Yojana offers loans under four categories to meet diverse funding needs:

Category

Loan Amount

Purpose

Shishu

Up to ₹50,000

For startups or businesses in the initial phase requiring minimal capital.

Kishore

₹50,001 to ₹5 lakh

For growing businesses needing funds for expansion or working capital.

Tarun

₹5 lakh to ₹10 lakh

For established businesses aiming to scale up operations or market reach.

Tarun Plus

₹10 lakh to ₹20 lakh

For successful Tarun loan repayers seeking higher funding for growth.

Table: PMMY Loan Categories and Their Purposes

The Tarun Plus category launched in 2024-25 will offer up to ₹20 lakh as a collateral-free loan provided entrepreneurs have successfully repaid their earlier loans under the Tarun category. The sanctioning authorities of banks have sanctioned ₹4,930 crore to 34,697 accounts in Tarun Plus category as of June 2025. The Tarun Plus category has clearly gained tremendous traction in the short time since its introduction.

Objectives of PMMY

The Pradhan Mantri Mudra Yojana was launched with the following objectives:

  • Financial Inclusion: To get small entrepreneurs into formal financial channels.
  •  Employment Generation: The Ministry of Labour and Employment‘s (2015 -2018) survey found PMMY generated 1.12 crore net additional employment.
  •  Empowerment of Marginalised Groups: To promote gender equality & social equity with substantial participation of SC/ST/OBC entrepreneurs and women.
  • Support to Micro Enterprises: To provide affordable credit to non-corporate small businesses for growth and self-reliance.

PMMY has facilitated self-employment and small business development, with specific emphasis on rural and semi-urban geographies which has enhanced India‘s economy.

Eligibility for Pradhan Mantri Mudra Yojana

Applicants for PMMY loans must be eligible under the following conditions:

  • Be an Indian citizen.
  • Be a non-corporate, non-farm small or micro enterprise in manufacturing, trading, services, and/or allied agricultural sector (i.e., dairy, fishing, food processing, etc.)
  • Have a business plan with a credit demand of up to ₹20 lakh.
  • If applying for Tarun Plus, you must have successfully repaid a Tarun loan.

Eligible borrowers can apply to commercial banks, RRBs, small finance banks, MFIs, or NBFCs.

Interest Rates and Repayment Terms

The interest rates for loans under PMMY will depend on the lender‘s policies and the borrower‘s creditworthiness but will usually range somewhere from 8% to 12% per annum. For example, the State Bank of India (SBI) disburses PMMY loans at 3.25%, above the External Benchmark Lending Rate (EBLR), which, for February 15, 2025, works out to an effective rate of 12.15%.

Repayment terms can be flexible:

  • Loans up to ₹5 lakh: Maximum 5 years with a moratorium period of maximum 6 months.
  • Loans from ₹5 lakh to 20 lakh: Maximum 7 years with a moratorium period of maximum 12 months.

In addition, there is a 2% interest subsidy available for timely repayment of Shishu loans for 12 months which helps ease the load for new entrepreneurs.

How to Apply for Pradhan Mantri Mudra Yojana

Applying for a Pradhan Mantri Mudra Yojana loan is straightforward, with both offline and online options available:

Offline Application Process

  • Visit the Lender: Go to any bank, NBFC or MFI in the area that gives your PMMY loans.
  • Submit the documents: Submit KYC Documents (Aadhaar, PAN etc), proof of business, and your business plan.
  • Loan Processing: The lender will appraise your application, and if you are eligible will sanction the loan.

Online Application Process (Pradhan Mantri Mudra Yojana Online Apply)

  • Visit the  Udyamimitra portal (www.udyamimitra.in) (www.udyamimitra.in) , or JanSamarth portal (www.jansamarth.in) (www.jansamarth.in). 
  • Complete the Pradhan Mantri Mudra Yojana applications online. 
  • Upload the prescribed documents and submit the application for digital approval. 
  • Check the application status online. 

MUDRA Card is a RuPay debit card, with the overdraft limit provision to facilitate working capital effectively, the borrower can withdraw cash from an ATM and can make payment from a POS machine.

For detailed guidance on starting a Makhana Processing business , check out this  Makhana Processing Business from GrowthInfy.

Documents Required for PMMY Application

To complete the Pradhan Mantri Mudra Yojana application form, applicants need:

  • Identity Proof: Aadhaar, PAN, Voter ID, or Passport.
  • Address Proof: Utility bills, Aadhaar, or rental agreement.
  • Business Proof: Shop license, registration certificate, or GST certificate.
  • Financial Documents: Bank statements, income proof, or ITR (if applicable).
  • Photographs: Recent passport-sized photos.

No collateral is required for loans up to ₹10 lakh, and all PMMY loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU), with the premium borne by the borrower.

Achievements of PMMY (As of 2025)

The Pradhan Mantri Mudra Yojana has achieved remarkable milestones in its 10-year journey:

  • Loan Disbursements: Over 3.20 crore loans worth ₹3,02,967.03 crore sanctioned as of December 2024.
  • Empowering Women: 69% of loan accounts belong to women entrepreneurs.
  • Social Inclusion: 51% of loans support SC/ST/OBC entrepreneurs.
  • Rural Impact: Significant growth in lending exposure, from ₹3.3 lakh crore in FY22 to over ₹5 lakh crore in FY24.

In Rajasthan alone, over 52 lakh of 81 lakh loans were disbursed to women entrepreneurs in the last three financial years, showcasing PMMY’s role in gender empowerment.

Challenges and the Way Forward

Despite its success, PMMY faces challenges:

  • Low Penetration in Remote Areas: Limited NBFC/MFI reach hinders access in rural regions.
  • Risk of Over-Indebtedness: Lack of financial literacy may lead to defaults.
  • Underperformance in Higher Loan Categories: Tarun and Tarun Plus loans constitute a smaller share of disbursements.

To address these, the government is focusing on:

  • Enhancing outreach through campaigns like the three-month financial inclusion drive (July–September 2025).
  • Promoting digital literacy and financial education to reduce default risks.
  • Expanding the role of private lenders to improve access in underserved areas.

Impact on Financial Inclusion

The Pradhan Mantri Mudra Yojana has been a landmark initiative for financial inclusion. Through its integration with the Pradhan Mantri Jan Dhan Yojana and other schemes, PMMY has opened up banking services to unbanked households. 56% of PMJDY accounts currently belong to women (January 2025), increasing their financial independence. The scheme‘s emphasis on rural and marginalized communities has minimized the urban-rural divide, leading to truly inclusive growth.

PMMY Loan Disbursement Growth

 

Conclusion

The Pradhan Mantri Mudra Yojana (PMMY) is a viable option for small entrepreneurs in India. The scheme provides collateral-free loans, flexible repayment terms, and the ability to apply online, allowing individuals to pursue their entrepreneurship goals. PMMY is much more than a financial scheme, as it allows women and disadvantaged groups to not only create wealth, but to also make significant social and economic contributions.

For individuals who want to open or expand their business, the application process is simple with the Pradhan Mantri Mudra Yojana online apply and Udyamimitra website and mobile application.

Uttar Pradesh Farmer Schemes: Kisan Credit Card and More

Uttar Pradesh Farmer Schemes: Kisan Credit Card and More

Posted on: by: Aditya Narayanin: Govt. SchemesLeave a reply

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.

Feature

Details

Loan Limit

Up to ₹3 lakh for crops, ₹2 lakh for allied activities

Interest Rate

7% (4% with PRI for timely repayment)

Collateral

Not required for loans up to ₹2 lakh

Validity

5 years with flexible repayment based on crop cycle

Application Process

Online via PM-KISAN portal or bank branches

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 portal

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.

Interested in food processing ventures? Read our detailed post on Makhana Processing Business: A Profitable Opportunity.

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

A farmer in Uttar Pradesh holding a Kisan Credit Card, standing in a lush green field.

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.

Overview of PM-KISAN Scheme

Overview of PM-KISAN Scheme: Benefits for Farmers in 2025

Posted on: by: Aditya Narayanin: Govt. Schemes1 Comment

Overview of PM-KISAN Scheme: Benefits for Farmers in 2025

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme by the Government of India is a game-changer for small and marginal farmers. Launched in February 2019, the scheme provides income support to farmers to help them meet agricultural and household expenses. In 2025, the scheme continues to have a major impact on the rural economy of India. In this article we will look at the pm kisan scheme details, benefits to farmers and how to apply for the scheme so that farmers can take full advantage of this financial aid.

What is the PM-KISAN Scheme?

PM-KISAN is a central sector scheme implemented to give financial help to all landholding farm families in India. Eligible farmers get ₹6,000 per year through three installments of ₹2,000 every four months. The money is directly transferred to farmers‘ bank accounts through Direct Benefit Transfer (DBT) on a transparent basis, directly into their bank accounts. PM-KISAN is designed to target marginal and small farmers. The scheme would provide farmers with money to buy seeds, fertilizers and modern farm equipment to pivot productivity.

The purpose of the scheme is simply to alleviate financial stress and enhance sustainable agricultural practices. While it provides income support consistently to farmers, which helps to ensure they are not entirely dependent on moneylenders, it also allows producers to concentrate on increasing agricultural productivity. As of July 2025, more than 11 crore farmers have benefitted from the scheme, with over ₹3.24 lakh crores of funding disbursed from the inception of the scheme to date. 

Indian farmer working in a lush green field under the PM-KISAN scheme

Key Benefits of the PM-KISAN Scheme in 2025

1.Financial Support for Agricultural Needs

The pm kisan scheme pays ₹6,000 per year to eligible farmers, alleviating part of the cost of inputs that include seeds, fertilizers, pesticides and modern inputs like rice planters or combine harvesters. This financial assistance allows farmers to have inputs as they would like, with the expectation that they will achieve improved crop yields and better farmer incomes. Farmers who are small and marginal will find this assistance particularly helpful in meeting seasonal expenses.

2.Economic Stability and Reduced Debt

The pm kisan scheme grants ₹6,000 per year to qualifying farmers, helping to offset some of the cost of input which could include seeds, fertilizers, pesticides and modern inputs like rice planters or combine harvesters. The pm kisan scheme’s support allows farmers to access inputs as they need, with the aim that they will achieve better crop yields and farmer income. Small and marginal farmers will be especially supported in meeting their seasonal expenses.

3. Support for Women Farmers

The PM-KISAN program is inclusive, and when the 19th instalment was released in February 2025, over 2.4 crore women farmers benefited. Their gender focus proves that women receive direct financial aid, increasing their empowerment in the agricultural community and ensuring they can contribute to their own agricultural community.

4.Encouraging Sustainable Farming

The scheme incentivises farmers to migrate to sustainable practices by providing finance for them to invest in eco-friendly tools and techniques. For example, farmers will be able to purchase solar-powered equipment from the funds under the PM Kusum Yojana, thereby reducing the cost of electricity while promoting green farming.

Nationwide Saturation Drive

In 2025, the government conducted a saturation drive (May 1 to May 31, 2025) to cover all eligible farmers under the scheme. This drive is to onboard new beneficiaries and verify existing beneficiaries to make sure no farmer is left out. Beneficiaries will be asked to complete e-KYC, link their Aadhaar with their bank accounts, and verify land records in order to receive the 20th instalment, which is anticipated in June 2025.

Eligibility Criteria for PM-KISAN Scheme

To avail the benefits of the pm kisan scheme, there are certain conditions the farmers must meet:

  • Residence: Only permanent residents of India qualify.
  • Land Ownership: Only those people who own agricultural land in their name can participate.
  • Farmer Category: Preference is for small and marginal farmers.
  • Exclusions: Any farmer who receives a pension greater than ₹10,000/month, institutional landowners, or anyone who filed income tax in the preceding assessment year, is ineligible.

Farmers must also complete the mandatory actions like e-KYC, linking Aadhaar to bank accounts and verify the land records for payments to be released. Failure to complete these processes may delay the installment payment or miss altogether.

How to Apply for the PM-KISAN Scheme in 2025

Applying for the PM kisan scheme is straightforward, with both online and offline options available. Here’s a step-by-step guide on how to apply pm kisan scheme:

Online Registration

  • Go to the official PM-KISAN portal www.pmkisan.gov.in
  • Locate the “Farmers Corner“ tab and select “New Farmer Registration.“
  • Determine if you fit under Rural Farmer Registration or Urban Farmer Registration.
  • Fill in your Aadhaar number, mobile number and other requested information.
  • Fill in and complete the captcha code and select “Get OTP.“
  • Validate the OTP and fill in the registration format with land and bank details.
  • Complete the application and make a note of the registration number for safe keeping.

Offline Registration

Farmers can also register via:

  • Common Service Centres (CSCs): Visit a CSC near you, pay a nominal fee of ₹30, and submit required documents
  • Local Authorities: Approach the nodal officer, patwari or revenue officer that state governments appointed .

Checking Application Status

To monitor the status of your application or installment:

  • Go to the PM-KISAN portal and click on “Know Your Status” in Farmers Corner.
  • Provide your registration number and captcha code.
  • Confirm with the OTP sent to your registered mobile number.
  • Your payment status will be shown on the screen.

Completing e-KYC

The e-KYC is compulsory for all beneficiaries:

  1. Go to the PM-KISAN portal and select “eKYC” under the Farmer Corner.
  2. Enter your Aadhaar number and click on search.
  3. Verify your number with the OTP sent to your Aadhaar linked mobile number.
  4. Complete the process. Alternatively, you can complete the eKYC process by going to a CSC and providing your biometrics.

Farmer checking mobile

Key Updates for 2025 Kisan e-Mitra Chatbot

On June 9, 2023, the Ministry of Agriculture launched Kisan e-Mitra AI Chatbot in 10 regional languages to aid farmers with queries relating to schemes. The chatbot accepts text or voice inputs and provides solutions and responses to queries in real-time, e.g., a farmer can inquire regarding getting registered, e-KYC of his/her documents & payment status. This digital solution improves accessibility to offline options for farmers throughout India.

Fraud Alerts

Farmers must be careful of scammers using false links, fake messages, or impersonating the program outreach through calls to steal or scam beneficiaries. Whenever in doubt, farmers should know to use the official PM-KISAN link or a helpline (155261 or 011-24300606) to seek support directly. 

Challenges and Recommendations

Despite the strong success of PM-KISAN, there are various challenges that should be recognized. The number of beneficiaries dropped significantly in 2022 due to limited knowledge and incomplete verification. Farmers must ensure that they are up-to-date on the scheme, have completed e-KYC, and verified their land records to avoid being unable to receive the payment. This will ensure timely transfer of payment into farmer’s accounts. Holding awareness camps, as well as mobile outreach events can spur enrolments. 

Conclusion

With at least 19 installments of the PM-KISAN scheme already distributed to agricultural farmers, the PM-KISAN scheme is an essential program for India‘s agricultural welfare initiatives as it provides crucial financial support to small and marginal farmers. This flagship scheme continues to support farmers with direct cash income and promote sustainable growth and choice for farmers . Keep informed, complete your e-KYC registration and take advantage of this scheme to continue your agriculture adventure.