For farmers banking with UCO Bank, understanding the institution's agricultural credit and settlement framework is essential to managing debt responsibly. Headquartered in Kolkata with over 3,200 branches across India, UCO Bank implements RBI Priority Sector Lending mandates and NABARD guidelines to serve the agrarian economy. This 2026 guide breaks down the practical details — products, eligibility, interest, and the routes available when repayment becomes difficult — so you can make informed decisions and protect your financial standing.
Quick Answer
UCO Bank offers a full range of agricultural credit — Kisan Credit Card (KCC), crop production loans, farm mechanization (tractor) loans, and allied-activity finance for dairy, poultry and fisheries. Loans follow RBI Priority Sector Lending norms and NABARD refinance guidelines, with interest subvention keeping effective rates as low as 4% for prompt repayers.
Key Highlights
- KCC-first approach: Revolving working-capital credit renewed annually.
- Wide reach: UCO Bank operates over 3,200 branches, largely rural and semi-urban, headquartered in Kolkata.
- Digital access: Apply and renew via the UCO mBanking Plus app.
- Collateral-free limit: Up to ₹1.60 lakh as per RBI norms.
- Subvention: 2% Government subvention + 3% Prompt Repayment Incentive.
UCO Bank Agricultural Loan Products
1. Kisan Credit Card (KCC)
Short-term revolving credit for seeds, fertiliser, labour, post-harvest costs and consumption needs, aligned to the crop cycle.
2. Agri Term Loans (Investment Credit)
Long-tenure loans for land development, minor irrigation (drip/sprinkler/tube-well), and farm mechanization such as tractors, tillers and harvesters.
3. Allied Activity Finance
Dedicated schemes for dairy, poultry, fisheries, sericulture and apiculture — covering sheds, stock and working capital.
| Loan Category | Purpose | Typical Repayment |
|---|---|---|
| KCC (Working Capital) | Crop inputs, post-harvest | 12 months (revolving) |
| Tractor / Mechanization | Farm machinery | 5–7 years |
| Dairy / Poultry | Sheds and stock | 3–7 years |
| Land Development | Irrigation, levelling | 7–9 years |
Interest Rates (Indicative 2026)
Rates are linked to the bank's RLLR/MCLR plus a spread. For KCC up to ₹3 lakh, effective cost falls sharply after Government subvention.
| Loan Slab | Indicative Rate (p.a.) | Notes |
|---|---|---|
| Up to ₹3 lakh (KCC) | 7% (effective 4% with prompt repayment) | GoI subvention |
| Above ₹3 lakh | RLLR + spread | Based on credit profile |
| Tractor loans | 9.5%–11.5% | Fixed/floating |
NPA, SARFAESI and Farmer Protections
An agri loan for short-duration crops typically turns NPA after two crop seasons of non-payment. The SARFAESI Act's Section 31(i) generally exempts agricultural land from seizure, though the bank may still pursue recovery through civil courts or a DRT. During notified calamities, UCO Bank restructures short-term dues into medium-term loans with a moratorium.
One Time Settlement (OTS)
UCO Bank periodically runs the UCO Bank OTS / Rin Samadhan scheme, letting long-term defaulters close accounts by paying an agreed portion of dues with waived interest. Approval is entirely at the bank's discretion.
Common Mistakes to Avoid
- Diverting crop loans to non-productive spending.
- Missing the annual KCC renewal (loses subvention and PMFBY cover).
- Ignoring early restructuring options after crop damage.
Disclaimer: OTS, interest waivers and restructuring are at the sole discretion of UCO Bank and subject to RBI/Government policy. This guide is educational and not a binding offer.
Conclusion
Used responsibly, UCO Bank's agricultural credit suite helps farmers fund each crop cycle, mechanize operations, and stay protected during distress through restructuring and settlement routes.
Frequently asked questions
What is the collateral-free limit for a UCO agricultural loan?
Per RBI guidelines, agricultural loans up to ₹1.60 lakh are collateral-free. Higher amounts usually require a land mortgage.
Can tenant farmers get a UCO agricultural loan?
Yes. Tenant farmers, oral lessees and sharecroppers are eligible, often through Joint Liability Groups (JLGs).
What is the effective interest rate on a UCO KCC?
KCC up to ₹3 lakh carries about 7%, but with 2% Government subvention and a 3% Prompt Repayment Incentive the effective rate can fall to around 4%.
Does the SARFAESI Act let UCO seize my farmland?
Section 31(i) of the SARFAESI Act generally exempts agricultural land from seizure, though the bank may pursue recovery via civil court or a DRT.
What happens to my UCO loan if my crop fails?
In notified calamities, the bank can restructure short-term dues into a medium-term loan with a moratorium, preventing NPA classification.
How do I apply for a UCO agricultural loan digitally?
You can apply and renew through the UCO mBanking Plus app or by visiting your nearest UCO Bank rural/semi-urban branch.
Is crop insurance linked to the UCO KCC?
Yes. For notified crops, coverage under Pradhan Mantri Fasal Bima Yojana (PMFBY) is typically linked to the credit limit.
Will an OTS affect my future borrowing from UCO?
Yes. An account settled via OTS is reported as 'settled' to credit bureaus, which can affect future loan eligibility.
What is the difference between restructuring and settlement?
Restructuring keeps the loan alive with an extended tenure for temporary stress; settlement (OTS) closes a long-term NPA at a reduced amount.
Do I need a No-Dues Certificate after settling my UCO loan?
Yes. Always collect a written No-Dues Certificate and confirm the account is formally closed after payment.