State Bank of India (SBI) has announced plans to introduce a new credit card, through its subsidiary SBI Cards & Payments Services, exclusively for farmers in the country.

The bank has already begun pilot projects of this card in three states, Gujarat, Rajasthan and Madhya Pradesh, with plans for a nationwide launch depending on the success of these pilots.

SBI chairman Rajnish Kumar said: “This will be the first credit card, aimed exclusively for farmers.

“We have launched farmers’ credit card in three states and have received about 100 applications. Based on its success, we will go for a nationwide launch.”

The new credit card can also be used to buy non-agricultural products, while 70-80% of its limit is allocated only for agriculture-related purchases.

According to Kumar, farmers will get 40-45 days of interest-free period for payment of the credit bill, and will be levied with lower penalty for delayed payment, when compared to standard cards.

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By GlobalData