Punjab launches first Kisan Bank, earmarks ₹17 billion for farm loans

Punjab's state administration unveiled a new financial institution called the Kisan Bank, marking the first such bank dedicated exclusively to agricultural credit in the state. The initiative aims to channel formal financing to small and marginal farmers who often rely on informal moneylenders.

An allocation of ₹17 billion has been set aside for the bank's initial loan portfolio, covering a range of agricultural needs from seed purchase to equipment financing. The funds will be disbursed through the state's existing agricultural extension network to ensure rapid outreach.

Officials said the Kisan Bank will operate under the Agriculture Department, leveraging state-backed guarantees to lower interest rates and reduce default risk. By providing transparent, affordable credit, the government hopes to boost farm productivity and curb rural indebtedness.

The scheme is part of Punjab's broader effort to modernise its agrarian economy and align with national goals of financial inclusion for the farming community.