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Relief for small farmers in Uttar Pradesh: Interest rate on loan from co-op banks slashed to 6%

The remaining interest subsidy to be borne by the state government, says CM Adityanath

2 min readLucknowUpdated: Dec 22, 2025 05:05 PM IST

Relief for small farmers in Uttar Pradesh: Interest rate on loan from co-op banks slashed to 6%

The government is taking steps to strengthen cooperatives, highlighting their role in building trust, social capacity, and self-reliance.

In a major relief for small and marginal farmers in Uttar Pradesh, Chief Minister Yogi Adityanath on Sunday announced a reduction in the interest rate on loans from UP Cooperative Rural Development Bank from 11.5 per cent to 6 per cent.

Speaking at ‘Yuva Sahakar Sammelan’ in Lucknow, the chief minister said, “Under the Mukhyamantri Krishak Samridhi Yojana, loans will now be provided at six per cent interest rate through the LDB, with the remaining interest subsidy to be borne by the state government.”

He also accused the previous state governments of “destroying” the cooperative sector, saying the BJP-led administration has revived it and is now moving towards the concept of “one cooperative bank per district”.

“Before 2017, the condition of district cooperative banks was extremely poor. Sixteen banks had been declared defaulters and had their licenses revoked by the Reserve Bank of India. Today, these banks are healthy, contributing not only to their members but also to the prosperity of farmers,” the CM claimed.

He alleged that earlier governments promoted a “one district, one mafia” culture, which led to the collapse of the cooperative sector and trapped farmers’ capital. “The BJP government gradually returned Rs 4,700 crore deposited by farmers in the 16 banks whose licenses had been revoked. Now, the banks are functioning effectively,” he said.

The government is taking steps to strengthen cooperatives, highlighting their role in building trust, social capacity, and self-reliance. He also cited initiatives such as digitisation, e-governance, and transparent policies to ensure accountability in the sector, the chief minister said. Adityanath urged for proper manpower allocation in cooperative societies managing fertilisers, chemicals, and pesticides, stating that such measures would strengthen farmer participation. —With PTI

Maulshree Seth

Maulshree Seth is an Assistant Editor with The Indian Express, based in Lucknow. With over 15 years of experience in mainstream journalism, she has built a formidable reputation for her on-ground reporting across Uttar Pradesh. Her expertise spans a wide array of critical beats, including state politics, governance, the judiciary, and rural development. Authoritativeness Maulshree’s work is characterized by depth and historical context. Her coverage of high-stakes state elections and landmark judicial rulings has established her as an authoritative voice on the intersection of law and politics in Northern India. She is frequently recognized for her ability to gain access to primary sources and for her nuanced understanding of the socio-economic factors that drive the world's most populous sub-national entity. Trustworthiness & Ethical Journalism Her reporting is rooted in rigorous fact-checking and a steadfast dedication to neutral, unbiased storytelling. By prioritizing field-based verification—often traveling to the most remote corners of the state—she ensures that her readers receive a truthful and comprehensive view of events. ... Read More

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