UP’s Big Push for Farmers: Minister Orders Special Drive for KCC Loans in Lucknow Meet
Published: July 15, 2025
Lucknow — Farmers in Uttar Pradesh are about to get a major boost! On July 15, 2025, UP Agriculture Minister Surya Pratap Shahi lit a fire under banks and insurance companies, ordering a special drive to roll out Kisan Credit Card (KCC) loans to farmers across the state. Chairing a high-energy review meeting in Lucknow with top bankers and agricultural insurance reps, Shahi made it clear: no more delays, no more excuses—farmers need quick, hassle-free credit to thrive. With the state’s economy leaning heavily on agriculture, this move could transform lives and fields alike. Want to know how UP’s farmers are set to win big? Let’s dig into this game-changing initiative!
A Call to Action for Farmer Empowerment
The Lucknow meeting was all about action. Minister Shahi, known for his no-nonsense approach, urged banks to fast-track KCC loan disbursals, targeting small and marginal farmers who often struggle for funds. “Our farmers are the backbone of UP’s economy. Banks must step up to ensure every eligible farmer gets a KCC without red tape,” Shahi declared, as reported by Hindustan Times. With over 2.3 crore farmers in UP, and only 75% covered by KCCs as of 2024, the state’s launching a mission to bridge the gap. The goal? Get 100% coverage by December 2025, building on the success of past drives that disbursed ₹24,000 crore to 19.62 lakh farmers by September 2020.
The KCC scheme, backed by the Reserve Bank of India and NABARD, offers farmers revolving credit for crop cultivation, post-harvest expenses, and allied activities like dairy and fisheries. With interest rates as low as 7% p.a. (and 3% subvention for prompt repayment on loans up to ₹3 lakh), it’s a lifeline for farmers facing high borrowing costs from private lenders. Shahi emphasized digital KCC applications, like those offered by Union Bank of India, which promise sanction and disbursal in minutes.
Why This Drive Matters
This isn’t just about loans—it’s about dignity and opportunity. UP’s farmers, especially in districts like Bahraich and Shravasti, often face delays or hidden charges, with some paying ₹1,000-2,500 in “legal fees” despite RBI’s no-fee mandate for loans up to ₹3 lakh. Shahi’s crackdown aims to curb these practices, ensuring banks like SBI, PNB, and Bank of Baroda deliver on promises of quick, collateral-free loans up to ₹3 lakh. The minister also pushed for tying KCCs to PM Fasal Bima Yojana, protecting farmers from crop losses due to weather woes.
X is buzzing with reactions. @UPAgriDept hailed the drive as a “farmer-first move,” while @FarmVoiceUP flagged concerns about paperwork hurdles for tenant farmers. Shahi addressed this, directing banks to simplify processes for tenant farmers and self-help groups (SHGs), ensuring inclusivity.
What’s Next for UP’s Farmers?
The special drive, set to run through December 2025, will see special vans hit rural UP, enrolling farmers at their doorsteps, much like the 2021 crop insurance campaign. Shahi also hinted at integrating KCCs with PM Jeevan Jyoti and Suraksha Bima Yojana, adding insurance benefits. With UP eyeing a doubling of farmers’ income by 2030, this drive is a cornerstone. Will banks deliver, or will red tape persist? As Shahi puts it, “The time for excuses is over.” Keep an eye on UP’s fields—this is where India’s agricultural future is taking root
