The Kisan Credit Card (KCC) Scheme was introduced by the Government of India to provide adequate, timely, and affordable credit to farmers for their agricultural and allied activities. The scheme enables farmers to meet their cultivation needs through a single-window credit facility with simplified procedures and flexible repayment options.
Under the KCC scheme, the Government of India offers interest subvention of 2% along with a Prompt Repayment Incentive (PRI) of 3%, making short-term crop loans available at an effective interest rate of just 4% per annum.
What is Kisan Credit Card (KCC)?
The scheme was:The main objectives of the KCC scheme are:Low interest rate – only 4% per annum with timely repayment
Flexible withdrawal as per crop cycle and requirement
Single credit limit for multiple needs
ATM / Debit Card access for easy transactions
Reduced dependency on moneylenders
Crop insurance coverage under PMFBY (where applicable)
Interest Rate under KCC Scheme
Q1. What is the maximum loan limit under KCC?
The Kisan Credit Card is a credit facility issued by banks to farmers in the form of a debit card. It allows farmers to withdraw money as per their requirement for agricultural operations, allied activities, and household needs without repeated documentation.
- Extended in 2004 to cover investment credit for allied and non-farm activities
- Revised in 2012 by a Working Group chaired by Shri T. M. Bhasin (CMD, Indian Bank) to simplify procedures and introduce Electronic / Smart KCC Cards
- To provide short-term credit for cultivation of crops
- To meet post-harvest expenses
- To provide produce marketing loans
- To cover consumption requirements of farmer households
- To provide working capital for maintenance of farm assets
- To meet investment credit needs for agriculture and allied activities like dairy, fisheries, poultry, etc.
Flexible withdrawal as per crop cycle and requirement
Single credit limit for multiple needs
ATM / Debit Card access for easy transactions
Reduced dependency on moneylenders
Crop insurance coverage under PMFBY (where applicable)
- Base Interest Rate As per bank norms
- Interest Subvention 2%
- Prompt Repayment Incentive 3%
- Effective Interest Rate 4% per annum
- Magnetic Stripe Card with PIN (ISO IIN enabled)
- Debit Card with Aadhaar-based biometric authentication
- Biometric Smart Cards using bank’s own infrastructure
- EMV Chip Cards (RuPay / Visa / MasterCard compliant)
- ATMs & Micro ATMs
- Banking Correspondents (BCs)
- PoS Machines at fertilizer, seed & pesticide shop
- Mandis & procurement centers for direct credit of sale proceeds
- Small & marginal farmers
- Tenant farmers, oral lessees & sharecroppers
- Self Help Groups (SHGs) & Joint Liability Groups (JLGs) of farmers
- Individuals engaged in agriculture and allied activities
- Duly filled Application Form
- Two Passport Size Photographs
- Identity Proof (Aadhaar Card / Voter ID / Driving License / Passport)
- Address Proof (Aadhaar / Driving License)
- Landholding Proof certified by revenue authorities
- Cropping Pattern with acreage details
- Security documents (for loan limit above ₹1.60 lakh / ₹3.00 lakh, as applicable)
- Any other document as required by the bank
How to Online Application ProcessApply for Kisan Credit Card
- Visit the official website of your preferred bank
- Select Kisan Credit Card (KCC) option
- Click on Apply Online
- Fill in the required details and submit the form
- An application reference number will be generated
- Bank will contact you within 3–4 working days if eligible
- Visit the nearest bank branch
- Collect or download the KCC application form
- Fill the form and submit along with required documents
- Bank officials will assist in verification and sanction process
Q1. What is the maximum loan limit under KCC?
- The limit depends on landholding, cropping pattern, scale of finance, and bank norms.
- Yes, KCC covers dairy, fisheries, poultry, animal husbandry, and non-farm activities.
- Yes, tenant farmers and sharecroppers can apply through JLGs/SHGs.
- Aadhaar is preferred but banks may accept other valid ID proofs as per guidelines.
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