What is Kisan Credit Card (KCC)?
The Kisan Credit Card (KCC) is a government-backed scheme in India that provides farmers with short-term credit for agricultural and related activities at low-interest rates. It was introduced by the Reserve Bank of India (RBI) and NABARD (National Bank for Agriculture and Rural Development) in 1998 to ensure timely access to credit and reduce farmers’ dependency on informal lenders.
The Kisan Credit Card (KCC) is a scheme started by the Government of India to help farmers get easy and low-interest loans. This credit facility allows farmers to buy seeds, fertilizers, pesticides, and agricultural equipment. It also provides financial support for allied activities like animal husbandry and fisheries. Launched in 1998, KCC has become a crucial financial tool for Indian farmers.
The Finance Ministry said that the total amount under the Kisan Credit Card (KCC) scheme crossed ₹10 lakh crore by December 31, 2024. This has helped 7.72 crore farmers. In March 2014, the total amount under KCC was ₹4.26 lakh crore. The ministry said this shows a big increase in affordable loans given to farmers for agriculture and related activities.
Kisan Credit Card Crossing ₹10 Lakh Crore
The total operational loan disbursal under the KCC scheme has crossed ₹10 lakh crore, reflecting the growing reliance of farmers on institutional credit.
The government has been expanding KCC coverage to include fishermen, animal husbandry farmers, and self-help groups.
The Atmanirbhar Bharat package also played a role in boosting the scheme.
Purpose of Kisan Credit Card
To provide farmers with quick and affordable loans for their agricultural needs.
To protect farmers from borrowing at high-interest rates from moneylenders.
To help farmers buy agricultural equipment, seeds, and fertilizers.
To offer insurance coverage, including crop and personal accident insurance.
Benefits of Kisan Credit Card
Low-Interest Rates: KCC loans are cheaper than regular loans.
Easy Loan Process: Getting a KCC is simpler compared to other loans.
Flexible Repayment: Farmers can repay after harvesting their crops.
Insurance Coverage: KCC holders get access to crop insurance and personal accident insurance.
Debit Card Facility: Farmers receive a RuPay debit card for cash withdrawals and purchases.
Who Can Apply for Kisan Credit Card?
Individual farmers or joint landowners.
Tenant farmers and oral lessees.
Self-help groups (SHGs) and joint liability groups (JLGs).
Farmers involved in fisheries and animal husbandry.
Loan Limit and Repayment
The loan limit depends on the farmer’s land, crop pattern, and credit history.
Initially, the limit was ₹3 lakh, which has now been increased to ₹5 lakh (Budget 2025).
KCC works like a revolving credit, meaning farmers can withdraw and repay as per their needs.
The card is valid for five years and can be renewed annually.
With the Kisan Credit Card scheme, farmers now have better financial security and easier access to credit, helping them improve their agricultural productivity.
Key Features of the Kisan Credit Card (KCC) Scheme:
Low-Interest Loans: Farmers get loans at subsidized interest rates, often as low as 4% per annum (with timely repayment and government subsidies).
Credit Limit: Based on landholding, cropping pattern, and financial history, a farmer can get a credit limit from ₹50,000 to ₹3 lakh or more.
Flexible Repayment: The repayment period is decided according to harvesting schedules.
Insurance Coverage: Covers crop failures due to natural calamities under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
Usage: Can be used for crop production, allied agricultural activities (dairy, fisheries, poultry), and purchasing farm inputs (seeds, fertilizers, equipment).
Simple Documentation: Minimal paperwork is required.
How to Apply for the Kisan Credit Card?
To apply Kisan credit card, visit the any Bank official website.
Click on the Kisan Credit Card option.
Fill all the details and submit.
After submitting application you application will be reviewed by the bank and if you criteria match then they will call to visit the branch.
Then visit the bank and they will asked some important documents and they will submit final application.
Your card will be ready in within a month, and it will be dispatched by post.