The Budget 2025-26 was presented by Finance Minister Nirmala Sitharaman in Parliament on February 1, 2025. One of the major announcements in this budget was the increase in the Kisan Credit Card (KCC) loan limit. Earlier, farmers could get a loan of up to Rs 3 lakh with a KCC, but now this limit has been increased by Rs 2 lakh. This means that Indian farmers can now avail of loans up to Rs 5 lakh through the Kisan Credit Card. But do you know how much interest is charged on loans taken through the Kisan Credit Card? Here, we will tell you about the interest rates offered by various banks on KCC loans.

Kisan Credit Card and Interest Rates

Different banks charge different interest rates on Kisan Credit Cards (KCC). Below are the interest rates offered by some well-known banks in India:

  • 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 Discount on Kisan Credit Card

The Government of India provides an interest discount on Kisan Credit Cards. Farmers who pay their loans on time get a 3% interest discount. In general, the government provides an interest subsidy of up to 2%. This means that after applying the discount, farmers need to pay only 4% to 6% interest per annum on the loan taken through KCC.

Who Can Apply for a Kisan Credit Card?

Currently, over 7.4 crore farmers in India are using Kisan Credit Cards. To apply for a KCC, a farmer must meet the following eligibility criteria as per the RBI guidelines:

  1. Any individual farmer or joint farmer can apply.
  2. The applicant must be actively farming on their own land.
  3. Farmers cultivating leased land are also eligible.
  4. Farmers in Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) can apply.
  5. Farmers engaged in sharecropping can also get a KCC.

How to Apply for a Kisan Credit Card?

If you want to get a Kisan Credit Card, follow these easy steps:

  • Step 1: Visit the official website of your bank. Find the Kisan Credit Card option under Loans or Agricultural Finance and click on it.
  • Step 2: Click on the “Apply Now” option.
  • Step 3: A form will appear. Fill in the required details, including your personal, financial, and land information, and submit it.
  • Step 4: After submitting, you will receive an application reference number. Keep it safe to track your application status later.