Big update for everyone. There are over 100 million credit card holders in India right now, and this number has really shot up in recent years. Both big and small banks across the country offer credit cards, and even farmers can get in on the action.
The government has introduced a special credit card just for farmers. Back in 1998, following a suggestion from the National Bank of Agriculture and Rural Development (NABARD), this card was launched to help farmers with their agricultural expenses.
On February 1, 2025, during the Union Budget presentation, Finance Minister Nirmala Sitharaman announced an increase in the limit for the Kisan Credit Card. It used to be set at ₹3 lakh, but now it’s been raised to ₹5 lakh.
Many people wonder how the Kisan Credit Card differs from a regular credit card. The main difference is that the Kisan Credit Card is tailored specifically for farmers’ needs, while a regular credit card is designed for the general public.
When it comes to penalties, a regular credit card can hit you with a fee of up to ₹, but that’s not how it works with a Kisan Credit Card. If you miss the repayment deadline, you could face a penalty of up to 7%.
Now, just so you know, the interest rates on regular credit cards can be pretty steep, ranging from 24% to 48%. In contrast, Kisan Credit Cards offer a much friendlier annual interest rate of just 4% after the government subsidy. Plus, the government has your back with some relief options if you can’t make your loan payments.