LUCKNOW: In essence, the Mukhyamantri Krishak Samriddhi Yojana seeks to put affordable long-term institutional credit within greater reach of small and marginal farmers—helping them invest, diversify and build more sustainable sources of farm-based income.It is an affordable Long-Term Credit to Help UP’s Small and Marginal Farmers with the objective of strengthening their economic position and enabling them to invest in agriculture and allied activities.The initiative is being implemented through the cooperative banking system, with the Uttar Pradesh Cooperative Gram Vikas Bank playing a key role.
What is in the scheme?
Under the scheme’s approved framework, eligible small and marginal farmers can access long-term loans of up to Rs 6 lakh at an annual interest rate of 6 per cent. The government is providing interest support to make such credit affordable for beneficiaries.Reports on the approved scheme have also indicated a 5% subsidy component to support the cost of credit.The emphasis on long-term lending is significant. Conventional short-term agricultural credit is generally designed around seasonal crop requirements.Such loans may not be suitable when a farmer wants to make investments whose returns accrue over a longer period—for example, establishing an agricultural asset, diversifying into allied activities or creating infrastructure that can generate income over several years.
Moving beyond seasonal farm credit
The scheme seeks to address this gap by providing farmers with access to longer-duration finance. The underlying approach is to enable farmers to invest in productive activities rather than remain dependent solely on seasonal crop loans.This can include agriculture-related investments and income-generating activities, subject to the detailed lending guidelines of the cooperative banking system.
Who can apply?
The scheme gives particular importance to small and marginal farmers, who often operate on relatively small holdings and therefore have limited capacity to make large investments from their own resources.
Strengthening the cooperative credit network
Another important feature is the role assigned to the cooperative banking infrastructure. The 2026–27 Uttar Pradesh Budget provides Rs 38 crore under the Mukhyamantri Krishak Samriddhi Yojana.The budget document states that the allocation is intended for interest subsidy on long-term loans to farmers, particularly small and marginal farmers, as well as financial assistance to the Uttar Pradesh Cooperative Gram Vikas Bank for working capital and modernisation and branding of its branches.
From credit access to income diversification
The broader objective is to create conditions in which farmers can move towards more diversified and sustainable rural livelihoods.For a small farmer, investment in farm infrastructure, allied activities or other agriculture-linked enterprises can potentially create additional income streams.Affordable long-term credit can make such investments more feasible by spreading repayment over a longer period rather than placing the entire financial burden on the farmer in a single agricultural season.
Government support for affordable finance
The interest subsidy is central to the scheme. Farmers are expected to receive credit at a rate substantially below what they might otherwise face for comparable long-term borrowing.According to the scheme’s reported structure, farmers can obtain loans up to Rs 6 lakh at 6 per cent annual interest, while government support helps bridge the difference between the concessional rate charged to the farmer and the cost of funds for the lending institution.
Building a stronger rural economy
The Mukhyamantri Krishak Samriddhi Yojana is positioned within the state’s wider effort to strengthen the rural economy and improve farmers’ economic opportunities.Its focus on small and marginal farmers, long-term credit, interest support and cooperative banking creates a framework through which farmers can access finance for productive investments without relying entirely on informal sources of credit.
