In a significant step towards agricultural reform and rural economic transformation, the Uttar Pradesh government launched a ₹5,000 crore UP Agriculture Loan Scheme for Farmers in June 2025. This initiative is aimed at empowering farmers by providing affordable credit at subsidized interest rates, building modern agricultural infrastructure, and supporting digital market linkages. As agriculture remains the backbone of Uttar Pradesh’s economy, this scheme is poised to be a game-changer for lakhs of farmers across the state.
UP Agriculture Loan Scheme for Farmers of Uttar Pradsh
The ₹5,000 Crore Agri-Loan Scheme is a credit-linked, government-supported financial initiative introduced by the Yogi Adityanath-led Uttar Pradesh government. The goal is to enable farmers to shift from traditional subsistence farming to a more entrepreneurial, business-oriented agricultural model.
Under this scheme, loans will be provided to farmers at an interest rate subsidized by 3%, with support from both state and central government resources. The funding will mainly focus on infrastructure development, post-harvest storage, processing facilities, and digital market access.
₹5000 Crore Agri-Loan Scheme 2025 Overview
| Feature | Details |
|---|---|
| Loan Amount | ₹5,000 Crore |
| Interest Subsidy | 3% (shared by Central and State Governments) |
| Target Group | Small and marginal farmers, FPOs, Agri-Cooperatives |
| Loan Purpose | Infrastructure development, cold chains, e-marketing, processing |
| Associated Schemes | AIF (Agri Infrastructure Fund), Self-Reliant Integrated Scheme |
| Loan Duration | As per bank norms; typically 5–7 years |
| Application Mode | Through scheduled banks and co-operative institutions |
Eligibility Criteria for Agriculture Loan in Uttar Pradesh
To benefit from the ₹5,000 crore loan scheme, applicants must fulfill the following conditions:
For Individual Farmers:
- Must be a resident of Uttar Pradesh
- Must possess cultivable agricultural land
- Should have a Kisan Credit Card (KCC) or be eligible to obtain one
- Must have a good repayment history (if previously availed loans)
For Farmer Producer Organizations (FPOs), SHGs & Cooperatives:
- Must be registered under the respective acts
- Must be active in agri-business or agri-processing
- Should have at least 50% farmer-members from UP
- Should submit viable project plans for infrastructure creation
UP Shadi Anudan Yojana 2025 – Online Apply, Eligibility And Benefits
Key Features of the Scheme
Affordable Loans for Farmers
- The scheme provides loans at a subsidized interest rate, making credit more accessible to farmers.
- An interest subsidy of 3% will be jointly provided by the Central and State governments.
2. Investment in Agricultural Infrastructure
- The funds will be used to develop state-of-the-art infrastructure, including cold storage, warehouses, pack houses, sorting, and grading units.
- These facilities will help farmers preserve their produce, reduce wastage, and secure better market prices.
3. Eliminating Middlemen & Enhancing Market Access
- The scheme aims to reduce the interference of middlemen, ensuring farmers get fair prices for their crops.
- Farmers will be linked to processing, storage, and e-marketing platforms, enabling them to become entrepreneurs and marketing professionals.
4. Promoting Self-Reliance & Employment
- Through initiatives like the Self-Reliant Integrated Development Scheme and Agri Infrastructure Fund (AIF), farmers will be encouraged to engage in value-added activities.
- The government will provide easy loans and technical guidance to help farmers expand their businesses.
5. Digital Market Access for Farmers
- Farmers will be able to sell their produce directly through e-platforms, ensuring better control over pricing and market dynamics.
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How to Apply
- Visit your local bank branch or cooperative bank listed under the scheme.
- Submit:
- Aadhaar and land documents
- Bank account details
- Loan application with project report (if applicable)
- Await verification by the bank officer and receive sanction.
- Interest subsidy will be automatically applied to eligible borrowers.
The government is also planning to launch an online portal for seamless application tracking and approval.
What Infrastructure Will Be Developed?
The loans under this scheme will help farmers and cooperatives develop essential agricultural infrastructure, including:
1. Cold Storage Units
- For perishable goods like fruits, vegetables, milk, and meat.
- Helps extend shelf-life and reduce losses during transportation.
2. Pack Houses & Grading Facilities
- For cleaning, sorting, grading, and packaging of produce before sale.
- Enhances quality and pricing in domestic and international markets.
3. Warehouses and Silos
- Helps in better storage of grains and pulses.
- Prevents spoilage, pest attacks, and allows farmers to wait for better market prices.
4. Primary Processing Units
- Includes small-scale processing for value addition (milling, pulping, drying).
- Enables farmers to earn more from their produce.
5. Digital Marketing Infrastructure
- Setting up of agri e-market platforms.
- Integration with e-NAM (National Agriculture Market) and private platforms.
Expected Impact on Rural Economy
The scheme is projected to:
- Benefit more than 20 lakh farmers directly in the next 2 years
- Reduce post-harvest losses by 30%
- Create over 1 lakh rural jobs through processing and storage units
- Improve farm profitability by 15–20% through better prices
- Strengthen rural cooperative institutions
- Accelerate adoption of climate-resilient and tech-enabled farming
What is the ₹5,000 Crore UP Agri-Loan Scheme?
The scheme is a financial initiative by the Uttar Pradesh government to provide affordable loans to farmers, improve agricultural infrastructure, and enhance market access for agricultural produce.
