UP govt sees priority sector credit potential at ₹9.14 trillion in FY27

UP's priority sector credit potential rises over 18% to ₹9.14 trillion for 2026-27, led by MSMEs and agriculture amid faster digital credit delivery

Signalling a sharp rise in its credit absorption capacity, Uttar Pradesh sees priority sector credit potential at nearly ₹9.14 trillion in 2026-27.

 

Of the projected lending, micro, small and medium enterprises (MSMEs) account for the largest share at about ₹5.49 trillion, followed by agriculture at ₹2.70 trillion. Housing credit has been estimated at ₹23,400 crore, agriculture infrastructure at ₹20,000 crore, and ancillary agricultural activities at ₹22,088 crore.

 

The estimate marks an increase of ₹1.45 trillion, or over 18 per cent, from the priority sector credit potential of ₹7.69 trillion projected for 2025-26. 

 

In 2024-25, the National Bank for Agriculture and Rural Development (Nabard) pegged the state’s priority sector lending potential at ₹5.73 trillion.

 

Addressing the State Credit Seminar 2026-27, Chief Minister Yogi Adityanath said the agricultural credit target of ₹3 trillion represents a 13 per cent increase over previous years.

 

He attributed faster credit delivery to digital governance reforms, noting that loans under the Kisan Credit Card (KCC) scheme are now being disbursed within minutes through e-KCC, compared to waiting periods of 25-30 days earlier.

 

The chief minister said the state is introducing artificial intelligence (AI) in agriculture to strengthen the farm economy and is the first state in the country to collaborate with the World Bank in agri-tech initiatives. Agriculture, MSMEs, women, agri-tech and youth entrepreneurship remain the government’s priority areas, he added.

 

Adityanath said the state provides security insurance cover of up to ₹5 lakh to MSMEs. Uttar Pradesh currently has about 9.6 million MSME units, supporting nearly 30 million families.

 

He also said the One District One Product (ODOP) scheme has emerged as a brand after being integrated with technology, markets, packaging and design.

 

The state’s credit-deposit ratio (CDR) has improved from 43 per cent to 61 per cent over the past nine years, with a target of 62 per cent by March 31, 2026, and 65 per cent in 2026-27.

 

The chief minister directed banks to extend loans to small and marginal farmers at concessional interest rates of 5-6 per cent, saying affordable credit enables investment in technology and boosts farm incomes.