₹384 crore for cheaper long-term loans to small farmers
Next story · 15 SepUP Toy Manufacturing Promotion Policy-2025 approved
On 15 September 2026 the UP Cabinet approved ₹384 crore under the Mukhyamantri Krishak Samriddhi Yojana for the UP Cooperative Gram Vikas Bank. Small and marginal farmers will get long-term loans up to ₹6 lakh at 6 per cent a year, with the State paying 5 per cent interest subvention. Branches will also be modernised.
- Date
- 15 Sep 2026
- Scheme
- Mukhyamantri Krishak Samriddhi Yojana
- Bank
- UP Cooperative Gram Vikas Bank (formerly Land Development Bank)
- Total aid
- ₹384 crore
- Loan
- up to ₹6 lakh at 6%
- Subvention
- 5%, for 5 years to 2030-31
The Mukhyamantri Krishak Samriddhi Yojana: what happened?
Small and marginal farmers are 92 per cent of UP’s farm families. The Gram Vikas Bank borrows from NABARD at high rates and so lends at 4.00 to 11.50 per cent. The subvention brings the farmer’s rate down.
- Under the CM Krishak Samriddhi Yojana, the Cabinet approved ₹384 crore from 2026–27 to 2030–31 for the UP Cooperative Gram Vikas Bank: interest subvention on long-term loans to small and marginal farmers and branch modernisation. [UP Cabinet]
How will the money be used?
- Interest subvention on long-term loans for 5 years, up to 2030-31.
- Modernisation and branding of branches for 2 years, 2026-27 and 2027-28.
- ₹38 crore has been provided in the current budget.
Why does the Mukhyamantri Krishak Samriddhi Yojana matter?
- Agriculture: Cheaper credit for farm investment like pumps and land work.
- Banking: Better repayment helps the bank’s health.
What can Prelims ask on the Mukhyamantri Krishak Samriddhi Yojana?
- Gram Vikas Bank was earlier called Bhumi Vikas Bank.
- Loan up to ₹6 lakh at 6%; State subvention 5%.
- Small and marginal farmers: 92% of farm families in UP.
How to write about the Mukhyamantri Krishak Samriddhi Yojana in Mains
Practice question (8 marks, 125 words): Why is long-term agricultural credit scarce for small farmers in Uttar Pradesh, and how does interest subvention help?
- Problem: costly refinance.
- Scheme.
- Limits.
- Conclusion.
Read all of September 2026 in the monthly UP current affairs compilation →
How to use this in Mains
- Long-term credit for farm investment is scarce; subvention lowers its cost.
Quotable data pointUnder the CM Krishak Samriddhi Yojana, the Cabinet approved ₹384 crore from 2026–27 to 2030–31 for the UP Cooperative Gram Vikas Bank: interest subvention on long-term loans to small and marginal farmers and branch modernisation [UP Cabinet].
UP Information Dept: Cabinet decisions, 15 September 2026 (Hindi PDF)
Exam angle
GS-VI: rural credit.
Practice MCQs
Original practice questions (not PYQs).
Under the UP Mukhyamantri Krishak Samriddhi Yojana, the interest rate for small farmers on long-term loans is
Answer (c) & explanation
UP Cabinet note, 15 Sep 2026.
The UP Cooperative Gram Vikas Bank was earlier known as
Answer (b) & explanation
UP Cabinet note, 15 Sep 2026.
Questions students ask about this
What does the scheme offer farmers?
Long-term loans up to ₹6 lakh at 6 per cent a year.
Which bank runs it?
The UP Cooperative Gram Vikas Bank, formerly the Land Development Bank.
How much has the State approved?
₹384 crore in total.
Keep studying
Official source: UP Information Dept: Cabinet decisions, 15 September 2026 (Hindi PDF)
facts from cited sources only; numbers machine-checked against source text; faculty review pending