Haryana to Launch Tech-Based Loan System for Farmers

Chandigarh: The Haryana government is set to introduce a transparent and technology-driven rural loan system to address long-standing administrative hurdles in agricultural credit. This initiative will spare farmers from the hassle of visiting banks and revenue offices repeatedly for loan documentation, stated Sumita Mishra, the state’s Financial Commissioner (Revenue), on Friday.

The government is poised to sign a memorandum of understanding with the Reserve Bank of India to develop one of the country’s most advanced integrated agricultural loan systems.

Under this framework, the approval of agricultural loans will be directly linked to digital land records, ensuring seamless coordination between financial institutions and revenue administration.

Sumita Mishra explained that this new system represents a fundamental change in how agricultural loans are distributed. Farmers will now need only their Aadhaar numbers, as all land-related details will be automatically retrieved from the state’s digital records.

She added that this project is not just a technological upgrade but a complete restructuring of public service delivery for farmers. The outdated cycle involving patwaris, tehsildars, and banks, which caused delays, will be eliminated.

The project will be implemented in two phases. The first phase will focus on loans through the Kisan Credit Card, the most widely used agricultural credit tool in the state.

After Aadhaar authentication, land details will be automatically obtained, loan entries will be recorded in land records, and once loans are repaid, encumbrance entries will be promptly removed.

The entire process will have zero human intervention, ensuring maximum transparency.

The second phase will expand the system to cover all types of agricultural and rural loans, creating a unified digital loan system across Haryana. This initiative is expected to benefit all stakeholders significantly.

Farmers will save time and gain faster access to credit, with full transparency through real-time tracking of loan status and land records. Banks and financial institutions will receive certified land data in real time, reducing risks of fraudulent applications and improving operational efficiency.