Budget 2025: Increase the limit of farmers credit card to Rs 5 lakh; What is a farmer credit card? Who is eligible for this card
In Budget 2025, it was decided to provide farmers, fishermen and dairy producers to benefit from Kisan Credit Card News. Against this background, what is the Kisan Credit Card? Who is eligible to take this credit card? Tell us the details.
What is a farmer credit card?
Kisan Credit Card is a government scheme launched in 1998 to provide loans to farmers. The interest on the loan taken by this card is only 4%. It is a small, appropriate interest loan for agricultural purposes. This program allows farmers to get easy funding. Thus, they prevent loans from private traders.
Kisan Credit Card Scheme
- Debt limits, regulations: Under the new interest concession scheme, farmers can no longer borrow up to Rs 5 lakh. Earlier this maximum amount was 3 lakhs. A maximum of 5 years have been fixed in a scheme.
- Eligibility: To get farmer credit card, tenant farmers, landlords, shareholders, agricultural or fishing or other product activities, such as a joint responsibility or self-help organization engaged in livestock activities.
- A loan that is not a shame: The farmer’s credit card does not require payment of Rs 2 lakh or less. This decision was taken by RBI in favor of loan facility to farmers.
How Kisan Credit Card works
The farmer credit card works in the same way as a simple credit card. It acts as a magnetic-strip card with personal identification number (PIN), International Identification Number (ISO IIN). It can be used in any bank’s ATM or micro ATM. To make it more secure, the user -friendship, based on the bank, biometric authentication via the base platform.
Comfortable transactions to farmers
Farmers can sell their agricultural products directly as a payment equipment at another location for mandals, purchasing centers and input traders using this card. They can post sales income in their accounts. This will improve farmers’ transactions better. Makes more effective in marketing.