The Budget for 2025-26 was presented by Finance Minister Nirmala Sitharaman in Parliament on 1st February 2025. One of the major announcements in the Budget is the increase in the Kisan Credit Card limit. Previously, farmers could obtain a loan of up to Rs 3 lakh using the Kisan Credit Card, but now the limit has been raised by Rs 2 lakh. This means that Indian farmers can now get a loan of up to Rs 5 lakh through the Kisan Credit Card. But do you know how much interest is charged on the loan taken from the Kisan Credit Card? Here, we will tell you about the interest rates charged by various banks on Kisan Credit Cards.
Kisan Credit Card and Interest Rates
Different banks charge different interest rates on the Kisan Credit Card. Below, we provide the interest rates offered by some well-known banks in India:
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Interest Rates by Bank:
- SBI Kisan Credit Card: Starting from 7% per annum
- PNB Kisan Credit Card: Starting from 7% per annum
- HDFC Bank Kisan Credit Card: Starting from 9% per annum
- Axis Bank Kisan Credit Card: Starting from 8.85% per annum (Interest discount available)
- Indian Overseas Bank Kisan Credit Card: 7% per annum (Interest discount available)
- UCO Bank Kisan Credit Card: 7% per annum (Interest discount available)
Interest Discounts on Kisan Credit Card
Now that you know the interest rates charged by different banks, it’s important to remember that the Government of India also offers a discount on the interest charged. Farmers who repay their loans on time are eligible for an interest discount of about 3%. Additionally, the government typically provides a discount of up to 2% on interest. This means you could end up paying a total interest rate of 4% to 6% per annum on loans taken through the Kisan Credit Card.
Who Can Get a Kisan Credit Card?
As of now, more than 7.4 crore farmers across India are using the Kisan Credit Card (KCC). If you want to apply for a Kisan Credit Card, you need to meet the following eligibility criteria:
- Any farmer, whether alone or jointly, can get a Kisan Credit Card.
- Only farmers who cultivate on their land are eligible for a Kisan Credit Card.
- Farmers cultivating on someone else’s land can also apply for the Kisan Credit Card.
- Farmers involved in self-help groups or joint liability groups are eligible for a Kisan Credit Card. These groups may include farmers cultivating on their land, on someone else’s land, or through sharecropping.
How to Get a Kisan Credit Card?
To apply for a Kisan Credit Card, follow these simple steps:
- Visit the Bank’s Official Website: Go to the official website of the bank and look for the Kisan Credit Card option under the loan or agriculture finance section. Click on it.
- Click ‘Apply Now’: After selecting the Kisan Credit Card option, click on the ‘Apply Now’ button.
- Fill in the Application Form: A form will appear where you need to enter your personal, financial, and land information. Complete the form and submit it.
- Track Your Application: After submitting the form, you will receive an application referral number. Save this number, as it will allow you to track the progress of your application.
Disclaimer: The information provided in this article is for general informational purposes only. We recommend verifying details with the respective banks or authorities before making any decisions. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. Please consult a financial advisor for better results.