The Kisan Credit Card (KCC) Scheme was launched to offer timely and affordable credit facility to farmers for agriculture use. The Government of India provides 2% interest subvention and additional 3% Prompt Repayment Incentive that lowers the effective interest rate to 4% per annum.
Updated On - 20 Oct 2025
The KCC scheme was expanded in 2004 to include a coverage of investment credit for allied and non-farm activities. The scheme has the general directions of the Government but the modalities may be practised based on the local and institutional needs of the banks.
What is Kisan Credit Card (KCC) Scheme?
The Kisan Credit Card (KCC) Scheme is a government-sponsored financial scheme to provide farmers with timely credit and affordable finance for their agriculture and allied activities. While the scheme provides short-term finance at concessional interest rates for helping farmers meet their crop production, pre-storage cost, storage cost and working capital requirements.
The scheme has incorporated investment credit for agriculture and allied activities over time. Gradually the scheme has incorporated many allied activities like animal husbandry, poultry, and fisheries to become a complete rural credit scheme.
Key Objectives of Kisan Credit Card
The Kisan Credit Card (KCC) scheme is designed to provide farmers with timely and adequate credit through a single-window banking solution. It simplifies access to financial support, ensuring seamless credit availability across India.
Key Objectives of the KCC Scheme are:
Short-Term Credit for Crop Cultivation - Covers expenses for seeds, fertilisers, pesticides, and other essential inputs.
Post-Harvest Expense Coverage- Supports storage, transportation, and processing costs after harvesting.
Produce Marketing Loans- Helps farmers store and sell produce at better prices, reducing dependency on intermediaries.
Household Consumption Needs- Provides credit for essential expenses like food, education, and healthcare.
Working Capital for Farm Maintenance- Funds repairs and upkeep of machinery, equipment, and infrastructure.
Support for Allied Agricultural Activities- Extends credit for animal husbandry, poultry, fisheries, and agro-processing.
Investment Credit for Long-Term Growth- Facilitates funding for land development, irrigation, mechanisation, and infrastructure.
Features of Kisan Credit Card
The following is the list of key features of KCC:
Offers a repayment period of 12 months.
Comes with an ATM cum credit card for cash withdrawals.
Credit limit ranges from Rs.10,000 to Rs.50,000 based on crop type and expenses.
Loan repayment can be done after harvest.
Allows repayment rescheduling if crops are damaged due to natural calamities.
Credit limit increases annually based on repayment history.
Valid for up to three years without seasonal appraisal.
Ensures a simple and hassle-free documentation process.
Benefits of Kisan Credit Card Loan Scheme
The Kisan Credit Card (KCC) scheme is designed to help farmers get timely and hassle-free credit for their agricultural needs. Here’s how it benefits them:
Benefit
Details
Loan Fixation and First-Year Credit Limit
Credit based on the scale of finance as decided by the District Level Technical Committee
Additional 10% credit for post-harvest, household and personal expenses
Additional 20% credit for repairs and maintenance of farm equipment
Covers insurance costs for crops, personal accidents and farm assets
Annual Increase in Credit Limit
Credit limit increases by 10% every year for the next four years
For farmers growing multiple crops, the loan is based on the cropping pattern
If the crop plan changes, the credit limit is adjusted accordingly
Support for Long-Term Investments
Loans available for land improvement such as leveling and fencing
Support for irrigation facilities including wells and pumps
Financing for purchasing farm machinery like tractors and harvesters
Includes allied agricultural activities such as dairy, poultry and fisheries
Loan amount is based on project cost and the farmer’s repayment capacity
Maximum Permissible Loan Limit (MPL)
Calculated as short-term loan limit for the fifth year plus long-term loan requirement
Becomes the overall loan ceiling under the KCC scheme
Sub-Limits for Different Needs
KCC account divided into two parts: Short-Term Loan: For crop production, maintenance and personal needs and Long-Term Loan: For long-term investments like land development and machinery
Farmers can withdraw funds as needed within the approved limits
If production costs rise beyond the 10% estimate, limits can be revised in the fourth or fifth year
Term loans have structured repayment schedules based on asset life
Interest Subsidy and Repayment Benefits
Government offers 2% interest subvention to reduce borrowing costs
Additional 3% Prompt Repayment Incentive for timely repayment
Effective interest rate becomes 4% per annum
Short-term loans qualify under the Interest Subvention Scheme for additional cost savings
The following are the different loan aspects of Kisan Credit Scheme:
Loan Aspect
Details
Loan Amount
For non-marginal farmers: First-year limit = scale of finance × area + 10% (post-harvest/household) + 20% (repairs) + insurance costs. Limit increases 10% yearly. For multiple crops, limit based on cropping pattern with 10% yearly increase.
Term Loans
For land development, irrigation, equipment, allied activities. Based on project cost and repayment capacity, repayable up to 5 years.
Maximum Permissible Limit (MPL)
Sum of 5th-year short-term loan limit + estimated long-term loan needs.
Marginal Farmers
Flexible limit Rs.10,000 to Rs.50,000 based on landholding, crops, and expenses (Flexi KCC).
Animal Husbandry & Fisheries
Finance scale fixed by District Level Technical Committee, covering working capital needs.
Disbursement
Revolving cash credit for short-term needs; term loans disbursed in fixed instalments.
Interest Rate (ROI)
Linked to bank base rate, varies by institution.
Repayment Period
Short-term loans: aligned with crop cycles. Term loans: generally up to 5 years.
Security
RBI guidelines apply; hypothecation of crops, collateral based on loan amount, recovery tie-ups.
Other Features
Mandatory crop insurance; optional additional insurance; interest subvention and prompt repayment incentives; simple documentation after first year.
Interest and Other Charges on Kisan Credit Cards
The interest rate for the Kisan Credit Card (KCC) scheme is determined by individual banks, meaning each bank has the flexibility to set its own rate based on its internal policies. However, as per the KCC circular issued on 20 April 2012, the government provides a standardized interest rate of 7% per annum on short-term agricultural loans up to Rs. 3 lakhs. This ensures that farmers receive credit at an affordable rate for their farming activities.
Additionally, farmers who repay their loans on time are eligible for an interest subvention and a prompt repayment incentive, further reducing their effective interest rate. These benefits help make agricultural credit more accessible and affordable, reducing the financial burden on farmers and promoting timely loan repayments.
The following factors influence the interest rates of Kisan Credit Card:
Loan Amount: Loans up to Rs.3 Lakhs typically have lower interest rates as they are considered less risky for banks. Borrowing beyond this amount increases the risk for banks, leading to higher rates to mitigate the risk involved.
Interest Subsidy: Banks provide 2-3% interest subsidies on loans up to Rs.3 Lakhs to make credit more affordable for farmers, in line with RBI schemes. This reduces the financial burden on farmers and encourages them to borrow more easily for agricultural needs.
Additional Subsidy: Farmers with a good repayment track record are rewarded with an extra 3% subsidy, incentivising responsible borrowing behaviour and encouraging timely loan repayment, which in turn lowers risk for lenders.
Simple Interest: Simple interest is applied when repayments are made on time, as it’s easier to calculate and more transparent. This method reduces the overall borrowing cost, benefiting both farmers and banks by promoting clarity in repayments.
Compound Interest: Delayed payments trigger compound interest, where interest is added to both the principal and any unpaid interest. This increases the total loan cost for farmers, encouraging them to repay on time and avoid additional financial strain.
Eligibility Criteria for Kisan Credit Card Loan Scheme
The eligibility criteria for the KCC scheme are as follows:
Age: Individuals between 18 and 75 years are eligible for the KCC scheme, ensuring access for farmers across various age groups.
Land Ownership: Farmers must own land for agricultural use to qualify for the scheme, ensuring the credit is directed towards active farming.
Savings Account: A savings bank account is required for smooth fund disbursement and transaction processing.
Rented Land: Farmers without owned land must have rented land for cultivation, proving their engagement in agricultural activities.
Crop Plan: A clear and structured crop production plan is needed to ensure the credit is used for productive agricultural purposes.
Fertile Land: Only farmers with fertile land are eligible, ensuring the credit contributes to high-yield farming activities.
Co-borrower for Seniors: Senior citizens (above 60) must have a co-borrower to provide additional financial security and support for repayment.
Types of Eligible Individuals:
Individual or joint cultivators who are owner cultivators.
Tenant farmers, oral lessees, and sharecroppers, demonstrating inclusivity towards various types of agricultural land tenure.
Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers, including tenant farmers and sharecroppers, promoting collective agricultural initiatives and community development.
Eligible beneficiaries under this scheme under fisheries and animal husbandry are:
Inland Fisheries and Aquaculture: Fishers, fish farmers, SHGs, JLGs, and women's organisations. You must own or lease any fisheries-related business in order to qualify as a beneficiary. This involves, among other things, owning or renting a pond, an open water body, a tank, or a hatchery.
Marine Fisheries: You possess a registered boat or other fishing craft and possess the required permits or licences for estuary or ocean fishing.
Poultry: Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, poultry, and have sheds they have owned, rented, or leased.
Dairy: Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own, lease, or rent sheds.
Documents Required to Apply for KCC Loan Scheme
The following are documents required to apply for KCC loan scheme:
Application Form: A completed form is required to initiate the loan process, detailing the applicant’s information and agricultural activities.
Passport Size Photographs: Two photographs are needed for identification and documentation.
Identification Proof: Valid government-issued IDs (e.g., Aadhar Card, Driving License, Voter ID, Passport) are needed to verify identity.
Address Proof: Documents such as Aadhar Card or Driving License are required to confirm the applicant’s residential address.
Proof of Landholding: Certified evidence of landownership or possession, verified by revenue authorities, is essential.
Cropping Pattern: Details of the crops grown and acreage help assess agricultural activities and credit needs.
Security Documents: For loan amounts exceeding Rs.1.60 lakhs or Rs.3 lakhs, collateral documents are required to secure the loan.
Additional Documents: Any additional documents may be requested by the lender for complete credit assessment.
Here are the steps for applying for the Kisan Credit Card scheme by visiting the bank branch:
Step 1: Select a convenient bank branch that offers the Kisan Credit Card scheme.
Step 2: Visit the branch during working hours; it is best to call ahead and confirm the timings to avoid inconvenience.
Step 3: Upon arrival, approach a bank representative or customer service desk and inform them of your intention to apply for the Kisan Credit Card.
Step 4: Request assistance with the application process. The representative will provide you with the necessary forms and details on required documents.
Step 5: Complete the application form with accurate personal and landholding details.
Step 6: Submit the completed application along with documents such as identity proof, address proof, and landholding proof.
Step 7: Before submitting, carefully review all the information for accuracy.
Step 8: The bank will process your application and may provide a reference number for tracking.
Step 9: Follow up within the specified time to check the status of your application and to ensure all requirements are met.
Download Application Form
Here is a step-by-step guide for applying for the Kisan Credit Card scheme by downloading the application form from the bank's website:
Step 1: Visit the official website of the bank where you want to apply for the Kisan Credit Card.
Step 2: Navigate to the Kisan Credit Card section and look for the download link for the application form.
Step 3: Click the link to download the correct Kisan Credit Card application form.
Step 4: Print the form on A4-size paper.
Step 5: Fill out the printed form with accurate details, including personal information, contact details, and landholding details.
Step 6: Collect all required documents, such as identification proof, address proof, and landholding evidence, as specified by the bank.
Step 7: Visit the nearest bank branch during operating hours.
Step 8: Submit the filled application form and documents to a bank representative and inform them you're applying for the Kisan Credit Card.
Step 9: Confirm that the bank has received your application. You may be provided with a reference number for tracking. Follow up with the bank within the given timeframe to check your application's status.
Integration with PM-KISAN Scheme
The scheme, PM-KISAN, allows for the disbursement of Rs 6,000 per year to specified farmers in 3 instalments, and these payments can be used for their farms, and households. The scheme was integrated with Kisan Credit Card (KCC) program in 2020. The scheme also complements the KCC program, as farmers can access institutional credit more easily through the KCC program which combines the immediate income support as in PM-KISAN, and available loans at low interest rates for agricultural and allied sector activities.
The benefits of having the supervisor (also the Executive Member) for banks, after saving the PM-KACH benefits and KCC in accordance with the recommendation from the Department of Financial Services were:
Extension of the tenure of the KCC loans - 12 months to 48 months as a result we more flexible in repayment.
Additional loan facility is available, even with existing pending dues, but commitment to the loan condemning interest payments terms are ongoing.
Three-level consultations between banks Agri-Staff led by the Department of Financial Services, regarding credit flow and discussing sectoral issues between KCC banks.
Digital banking, education credits and MSME credit were discussed at the other extensive agenda point interbank state meetings and remain important.
How to Apply for Kisan Credit Card under PM Kisan Samman Nidhi Scheme
If you want to apply for a KCC Loan Scheme under the PM Kisan Samman Nidhi Scheme, you can follow these steps:
You must fill in a one-page form available on the website of all commercial banks.
You should fill in all your basic information like crop sown and land record.
The interest rate for Kisan Credit Card loans from IOB, up to Rs.3 Lakhs, is 7% per annum. This applies specifically to loans with a tenure of 1 year from either the sanction date or the renewal date.
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Additional local banks providing Kisan Credit Card loans include Odisha Gramya Bank and Bangiya Gramin Vikash Bank.
How to Check Kisan Credit Card Balance
The following are the steps to check the Kisan Credit Card balance:
Any bank that offers KCC allows you to apply for KCC
You can contact the customer care service to check the balance
You can also visit the bank’s website to check the balance
What is e-Kisan Credit Card (e-KCC)?
Here are the details related to Electronic KCC:
Digital version of the traditional Kisan Credit Card (KCC)
Initiative if Government of India to promote digitisation
Eliminates the need for physical documentation and paperwork
Offers credit facilities digitally
Linked to the farmer’s Aadhar card
Enables farmers to apply and track credit facilities online
Offers short-term credit for agricultural activities that includes consumption needs, working capital requirements, post-harvest expenses, and cultivation
Integrated with various government schemes and subsidies related to agriculture
Offers financial incentives and support programs
Streamlines the credit delivery process
Empower farmers with digital tools to manage their credit requirements effectively and enhance financial inclusion
What is the validity period of the Kisan Credit Card?
This validity period is 5 years. The tenure you do get depends on the type of activity you plan to use the money for.
What is the age requirement in order to apply for a Kisan Credit Card?
You should be a minimum of 18 years of age and be a maximum age of 75 years. If you are a senior citizen, then it is mandatory to have a co-borrower who is a legal heir.
What is a crop loan?
Crop loans give farmers access to the credit they need to satisfy their working capital requirements. KCC is a kind of crop loan provided by banks. The KCC loan, however, has a variety of different uses besides only covering working capital needs.
Why was the KCC scheme introduced?
To make sure that the credit requirements for farmers in the agricultural, fishery, and animal husbandry sectors were met, the KCC plan was developed. This was done by helping them obtain short-term loans and giving them a credit limit for equipment purchases and other expenses.
How does a bank determine the credit limit on a Kisan Credit Card?
The credit limit offered on a KCC Loan Scheme for the initial year is based on the cultivation of crops according to the scale of finance and cropping pattern that was proposed, Household / post-harvest consumption requirements, and Expenses related to the maintenance of crop insurance, farm assets, Asset insurance and Personal Accident Insurance Scheme (PAIS).
Is revolving credit facility available on a Kisan Credit Card?
Yes, revolving cash credit facility is available on these cards for an unlimited number of withdrawals and repayments made within the credit limit.
How can i contact kisan credit card customer care?
If you have any queries or grievances regarding the Kisan Credit Card (KCC), you can contact the Kisan Credit Card Customer Care through several channels. You can call the toll-free number 1800115526 or the alternate number 011-24300606 for assistance. Alternatively, you can email your concerns to pmkisan-ict@gov.in. For online support, you can visit the Kisan E-Mitra Helpdesk on the official PM Kisan website at pmkisan.gov.in, where you will find more resources and guidance.
How can I check my Kisan Credit Card balance?
To check your Kisan Credit Card balance, you have a few options available. You can visit any bank that offers KCC services and inquire about your current balance. Alternatively, you can contact the customer care service for assistance. Many banks also provide online facilities, so you can check your balance by visiting your bank’s official website and logging into your account for real-time updates.
Can I apply for a Kisan Credit Card at any bank?
Yes, you can apply for a Kisan Credit Card at any bank that offers the KCC service. Once you choose the bank, you will need to approach them and complete the application process. The bank will provide you with the necessary forms and guide you through the required steps to obtain the card, including any documentation needed for approval.
News About Kisan Credit Card
Union Budget 2025: Kisan Credit Card Limit Increased
In the Union Budget 2025, the Finance Minister announced that the limit on Kisan Credit Cards will be increased from Rs.3 lakh to Rs.5 lakh. This will be applicable for Kisan Credit Cards availed through KCC portal.
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