Kisan Credit Card Interest Rate in 2026

Want to know how the Kisan Credit Card is empowering our farmers to free themselves from the never-ending cycle of debt? For several years, failures in crop harvests and unpredictable weather conditions have forced farmers to rely on loans with sky-high interest rates.

These loans were offered by informal lenders, perpetuating a loop-like cycle of poverty and despair. The Indian Government, the RBI, and the NABARD initiated a game-changing project in the year 1998-99, known as the Kisan Credit Card. Let us take a look at the Kisan Credit Card interest rate and how this credit card has changed the lives of farmers in India!

Kisan Credit Card Interest Rate & Other Features

The Kisan Credit Card was created with a view of offering credit at low prices to farmers. The farmers are provided with KCC loans at a subsidised interest on 7%. To ease this, a subsidised 7% interest rate is given to financial institutions by the Indian Government.

In addition, those farmers who pay loans punctually are entitled to 3% Prompt Repayment Incentive (PRI). This empowers it to lower the interest rate down to 4 per annum. The IS and PRI entitlements can be used in the case of established loan limits which increase to ₹3 lakhs.

But in the event that the short-term loan is utilised on allied operations (the exception being crop husbandry, including animal husbandry, and Fisheries), the loan limit is restricted to ₹2 lakh.

The maximum amount of a collateral-free loan that KCC fisheries can take out has been raised by the RBI, in accordance with the December 6, 2024, circular, to ₹2 lakh, effective January 1, 2025. The key features include:

• Typically valid for 5 years
• Kisan credit card interest rate averaging at 9%
• Needs to be renewed every year
• 12-month credit card
• Loans are to be repaid post the harvest & sale of crops
• Credit limit relies on the lender's rules/credit score of the respective farmer
• Crop season failure points towards a possible loan repayment period extension of the loan amount up to 4 years or beyond

Kisan Credit Card Benefits

Basically, the Kisan Credit Card Scheme provides loans at affordable interest rates and farmers can come out of the trap of debts. The latter is, therefore, able to concentrate upon what is most important: picking a brighter future. Check the benefits associated with the Kisan credit card:

• A passbook is given to withdraw cash at the respective bank.
• A cheque book is issued with a credit limit of 25,000.
• The loan amount may be used by the farmer to buy the required farm equipment, seeds, and fertilisers.
• Minimum interest rates in banks at an average of approximately 9%.
• 3 lakh is the highest credit limit.
• Farmers with good credit scores will be given credit limits that are higher.
• Subsidies are given on interest rates on farmers with good credit scores.

💡Pay your credit card bills in an easy and secure way with the PICE App.

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Eligible Beneficiaries in Fisheries and Aquaculture for the Kisan Credit Card

1. Inland Fisheries

• Women's groups
• Fish farmers (including individuals, SHGs, groups, JLGs)
• Must own/lease fisheries assets (boats, ponds, nets, tanks)
• Authorisation/certification is required

2. Marine Fisheries

• Those who own/lease the registered fishing vessels or boats
• A fishing license/permission is required

Conclusion

The Kisan Credit Card initiative is a financial assistance scheme that provides long-term credit to the farmers in India. It allows them to fulfil their agricultural requirements such as post-harvest cost, crop farming, and working capital requirements. Allied activities like dairy, fisheries and poultry are also covered in this scheme.

Overall, the card will enable farmers to control their domestic budget and farm resources.As competitive as the Kisan Credit Card interest rates are, the advantage of interest subvention stands to uplift the farmers in India. It has helped them manage their finances and even boost their agricultural productivity in the long run!

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