Kisan Credit Card (KCC) Scheme

The Kisan Credit Card (KCC) scheme ensures that farmers have timely, affordable institutional credit for crop cultivation, post-harvest expenses, and allied agricultural activities. Under the Modified Interest Subvention Scheme (MISS), short-term crop loans up to ₹3 Lakh are offered at a benchmark interest rate of 7% p.a., with a 3% Prompt Repayment Incentive (PRI) reducing the effective interest rate to just 4% per annum. Furthermore, pursuant to RBI Circular RBI/2024-2025/96 (FIDD.CO.FSD.BC.No.10/05.05.010/2024-25), banks waive collateral security and margin requirements for agricultural loans up to ₹2 Lakh per borrower (effective January 1, 2025).

The KCC structure provides farmers with financial liquidity throughout the crop cycle without having to submit fresh loan applications every season. Credit limits are determined by the District Level Technical Committee (DLTC) based on local scale of finance and cultivated acreage. When farmers repay dues within 12 months of disbursement, the 3% PRI is credited directly by the Government of India, bringing the annual borrowing cost down to 4%.

Eligible borrowers include individual and joint owner-cultivators, tenant farmers, oral lessees, sharecroppers, and Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers. Farmers engaged in animal husbandry, poultry, dairy, and fisheries are also eligible for working capital KCC limits. The statutory minimum age is 18 years. National RBI guidelines do not establish a statutory upper age limit; senior applicants above 60–70 years are evaluated under individual commercial bank credit policies (typically requiring an adult legal heir as co-borrower).

Applicants must provide an Aadhaar card, valid land ownership documents (Khasra, Khatauni, or 7/12 land extract; lease agreements for tenant farmers), two passport-size photographs, and a completed bank KCC application form. For loans exceeding ₹2 Lakh, banks may require primary hypothecation of crops and secondary collateral as per bank internal lending norms.

• Aadhaar Card
• Land Records (Khasra/Khatauni/7-12 extract / RoR / Lease Agreement)
• Two Passport Size Photographs
• Bank Account Details

Step 1: Visit any commercial bank, Regional Rural Bank (RRB), or primary agricultural cooperative society (PACS). Step 2: Submit the simplified one-page KCC form (available on pmkisan.gov.in for PM-KISAN beneficiaries) along with land revenue records and Aadhaar. Step 3: The branch assesses the acreage and scale of finance to determine the 5-year credit limit. Step 4: Upon sanction, receive the KCC passbook and RuPay debit card. Step 5: Utilize funds via ATM or agri-input merchant POS, and repay within 12 months to earn the 3% subvention.

KCC enrollment operates continuously year-round across all bank branches. Simplified pre-approved KCC facilities are regularly processed for PM-KISAN beneficiaries.

Repaying only the accrued interest and delaying principal settlement beyond 12 months (which forfeits the 3% prompt repayment incentive), not applying for limit enhancements when acreage or cropping pattern expands, or borrowing through informal lenders when low-cost 4% institutional credit is available.

Maintain updated, error-free revenue records (Khatauni/7-12) with your local Patwari before submission. PM-KISAN beneficiaries should use the one-page simplified KCC form to fast-track verification.

The Kisan Credit Card scheme remains India's primary institutional credit mechanism for agricultural producers, offering heavily subsidized 4% working capital and enhanced collateral-free limits of ₹2 Lakh to protect farmers from exploitative informal credit.

Facts on this page are based on the official documents and portals below. Rules can change, so confirm the latest position on the official source before applying.

1. Master Circular — Kisan Credit Card (KCC) Scheme — Reserve Bank of India & NABARD (2024-04-01)