Kisan Credit Card (KCC) Scheme

The Kisan Credit Card (KCC) scheme was introduced to give farmers easy, timely, and adequate credit for their farming needs — without the lengthy bank loan process every season. A KCC works like a credit card but is specially designed for farmers. Once approved, you get a revolving credit limit that you can draw from as and when needed for seeds, fertilisers, pesticides, labour, and other farming expenses. The credit limit is based on your land area and crop type. For loans up to Rs 3 lakh, the interest rate is just 7% per annum, and with the government's 3% interest subvention for prompt repayment, the effective rate comes down to just 4% — one of the cheapest credit options available in India.

KCC gives farmers the freedom to purchase farming inputs at the right time without waiting for loan sanctions each season. The credit limit is typically set for 5 years based on the scale of finance for your crops. You can withdraw cash or make payments using the KCC RuPay card at any ATM or bank branch. For crop loans up to Rs 3 lakh, the government provides a 2% interest subvention, and an additional 3% incentive for prompt repayment — making the effective interest just 4% per year. This is significantly cheaper than moneylender rates. KCC also covers post-harvest storage, household consumption credit, and maintenance of farm assets.

All farmers — individual, joint borrowers, and tenant farmers — are eligible for KCC. Oral lessees, sharecroppers, and Self Help Groups (SHGs) of farmers can also apply. Fishermen and animal husbandry farmers are also covered under the extended KCC scheme. There is no strict income or landholding size limit, though the credit limit is calculated based on the area under cultivation and the scale of finance fixed by the District Level Technical Committee (DLTC).

To apply for a KCC, you need your Aadhaar Card, Land Records (Khasra/Khatauni in most states, or the 7/12 extract in Maharashtra), two passport-size photographs, and a completed KCC application form from the bank. For loans above Rs 1.6 lakh, additional collateral or land mortgage documentation may be required.

• Aadhaar Card
• Land Records (Khasra/Khatauni/7-12 extract)
• Passport Size Photograph
• Two Passport Size Photos

Step 1: Visit any bank branch (SBI, PNB, cooperative bank, regional rural bank) or Common Service Centre near your village. Step 2: Ask for the KCC application form and fill it with your land details, crop pattern, and Aadhaar number. Step 3: Submit land records and other documents. Step 4: The bank officer evaluates your land area and fixes the credit limit. Step 5: Once sanctioned, you receive a KCC RuPay debit card and a passbook. Step 6: Use the card to withdraw funds from ATMs or make purchases at agri-input shops. Repay after harvest. PM-KISAN beneficiaries can also apply for KCC through a simplified form available on pmkisan.gov.in.

KCC applications are accepted throughout the year at bank branches. For PM-KISAN beneficiaries, special KCC camps are organised periodically — check your local bank or Krishi Vigyan Kendra for dates.

Many farmers repay only the interest and carry forward the principal indefinitely — this disqualifies them from the 3% prompt repayment incentive. Always repay the full outstanding amount within 12 months of disbursement to avail the 4% effective interest rate. Another mistake is not updating the KCC limit after purchasing new land — get your credit limit revised accordingly.