Uttar Pradesh Revolutionizes Farm Loans with Five-Minute KCC Disbursal
In a landmark development for agricultural finance, Uttar Pradesh Chief Minister Yogi Adityanath has revealed that Kisan Credit Card (KCC) loans, which once required farmers to wait as long as 25 days to a month, are now being disbursed within an astonishing five minutes. This dramatic acceleration is attributed to the e-Kisan Credit Card (e-KCC) system implemented by the National Bank for Agriculture and Rural Development (NABARD), marking a significant leap in digitizing rural banking services.
NABARD's e-KCC Portal Drives Efficiency
During the State Credit Seminar in Lucknow, where the State Focus Paper (SFP) 2026-27 was unveiled, CM Adityanath praised NABARD for its pivotal role in transforming the loan approval process. The e-KCC portal, developed by NABARD, has streamlined application processing by digitizing it end-to-end, eliminating bureaucratic delays and enhancing transparency. Adityanath commended NABARD for assessing the credit roadmap for priority sectors and guiding bankers to achieve ambitious targets, including a 13% increase in the agricultural credit goal to Rs 3 lakh crore for 2026-27.
Uttar Pradesh's Agri-Tech Leadership and Economic Growth
Highlighting the state's proactive stance on technology integration, Yogi Adityanath emphasized that Uttar Pradesh is the first Indian state to collaborate with the World Bank in the agri-tech sector. The government and farmers are jointly exploring the use of Artificial Intelligence in agriculture, following the announcement of an AI agriculture platform in the Union Budget. This initiative aligns with the state's broader vision of achieving a $1 trillion economy, supported by substantial gains in GDP, growth rate, and per capita income, which has surged from Rs 43,000 to Rs 1.20 lakh since 2016.
Key economic milestones include:
- State economy growth from Rs 11.7 lakh crore in 2016 to an estimated Rs 36 lakh crore this financial year.
- Exports skyrocketing from Rs 84,000 crore to Rs 1.86 lakh crore.
- Credit-deposit ratio improvement from 43% to 61% over nine years, targeting 65% by 2026-27.
- Uttar Pradesh now being revenue-surplus, fiscally disciplined, and the second-largest economy in India.
Banking Reforms and Support for Farmers and MSMEs
The CM detailed extensive banking reforms that have bolstered financial inclusion. Small and marginal farmers now access loans at reduced interest rates of 5-6%, with the government subsidizing the remaining cost. Additionally, Uttar Pradesh is the first state to provide Rs 5 lakh security insurance to Micro, Small, and Medium Enterprises (MSMEs), underscoring its commitment to entrepreneurship and economic resilience.
Adityanath also highlighted the transformation of the cooperative sector under the "Sehkar se Samriddhi ki Aur" vision, where digitization and e-governance have enhanced accountability. Of the 16 district cooperative banks once declared defaulters, 15 have turned profitable, with efforts ongoing to revive the remaining one.
Future Directions and Banker Appeals
Looking ahead, the CM urged bankers to simplify loan conditions and adopt a positive approach towards farmers, Farmer Producer Organizations (FPOs), MSMEs, and cooperatives. Pankaj Kumar, Chief General Manager of NABARD's Regional Office, noted that the State Focus Paper aggregates ground-level potential assessments across all 75 districts, forming the basis for the Annual Credit Plan to be finalized by the State Level Bankers' Committee (SLBC).
With agriculture, MSMEs, women empowerment, agri-tech, and youth entrepreneurship as top priorities, Uttar Pradesh is setting a national benchmark in leveraging technology for rural development and economic prosperity.
