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Kisan Credit Card

KCC Scheme

Last Updated 09th Mar 2021

  • Kisan Credit Card was introduced in 1998 to provide quick credit to farmers for purchasing seeds, fertilizers, agricultural machinery, etc.
  • The initial tenure of KCC is 5 years.
  • It also provides insurance coverage against damage of crops due to any natural calamity or pest attack.
  • The interest rate on the Kisan Credit Card starts from 4%.
  • Up to a specified limit, no collateral is required. The collateral-free threshold may vary from bank to bank.
  • No restriction on cash withdrawal as long as it is within the credit limit prescribed.
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Kisan Credit Card (KCC)

Kisan Credit Card scheme was implemented by NABARD (National Bank for Agriculture and Rural Development) along with RBI (Reserve Bank of India). The main objective behind the scheme is to provide instant, short-term formal credit to farmers, especially at the time of planting and harvesting season. Over the years, the government has simplified the application process along with the repayment process to reduce the debt burden of farmers.

The Kisan Credit Card is readily available at various cooperative banks, public sector commercial banks and rural banks.

Kisan Credit Card Features

The following are the key features of the Kisan Credit Card:

  • The Kisan Credit Card comes with an insurance coverage by providing protection against the loss of crops due to any natural calamity, pest attacks, etc.
  • The KCC also acts as an ATM cum debit card for all borrowers.
  • The loan amount for the first year is assessed based on the cultivation cost, post-harvest expenses and the cost of maintaining the farm.
  • For the next 5 years, the loan will be extended based on the increase in the scale of finance.
  • The Kisan Credit Card is provided with the objective of helping farmers by providing easy credit to meet the financial requirements related to agriculture and allied activities.
  • No collateral is required for a loan up to ₹ 1.60 Lakh by SBI.
  • The interest is charged on credit based on a simple interest method. It is charged for 1 year or up to repayment due date whichever is earlier.
  • In case of payment not made by the due date, interest is charged based on half-yearly compounding for the repayment.

Features of Kisan Credit Card Loan Scheme

The Kisan Credit Card Scheme also enables loan facility. It features as mandated by the RBI are:

  • In addition to the Kisan Credit Card, the cardholders will also be issued a smart card cum debit card.
  • The banks will review yearly to determine the validity of the credit card.
  • In case the crops get damaged due to natural calamities, the conversion and rescheduling of loan is also permissible.
  • For any amount of withdrawals and repayment made throughout the year, the facility of revolving credit is available.
  • If the farmer has a good credit record and in some years there is a change in cropping pattern or increase in operation cost, the credit limit can be increased at the discretion of the issuing bank as an incentive for good credit habits.

Benefits of Kisan Credit Card

Some of the key benefits of the Kisan Credit Card Scheme are:

  • The credit disbursement is hassle-free.
  • In case of maintaining credit balance in the Kisan Credit Card account, the interest rate of the savings bank is provided.
  • The interest rate on KCC is low.
  • It provides term loan/single credit facility for all agricultural and ancillary financial needs.
  • KCC also provides flexible repayment alternatives to cardholders.
  • The KCC Scheme helps farmers in purchase of fertilizers, seeds, etc., along with aiding them in availing discount from dealers or merchants.
  • The maximum tenure for which credit is extended is 3 years, and the repayment can be made after the end of the harvesting season.
  • Since the credit is easily available for farmers, their dependency on informal credit sources like money lenders decreases.
  • There is minimal documentation and maximum flexibility associated with the withdrawal of required funds for the cardholder from the issuing bank.
  • There is no restriction on cash withdrawal as long as it is within the credit limit.

Kisan Credit Card Eligibility Criteria

Kisan Credit Card is available only to those farmers and individuals who satisfy its eligibility criteria. These criteria are:

  • The age of the individual needs to be between 18 to 60 years at the time of applying for the scheme.
  • The individual or group of people should be owners of agricultural land.
  • If the individuals or the group is not the owner, then they should have taken a rented land for cultivation.
  • The land in consideration has to be agriculturally active and must be generating crops.

The eligibility criteria for fisheries and animal husbandry under this scheme are:

  • The fish farmers, fishers, SHGs, JLGs and women groups are eligible, provided they own or lease any activity related to fisheries. This could mean owning or leasing a pond, an open water body, tank, a hatchery, etc.
  • The applicant owns a registered fishery boat or any other fishing vessel along with having the necessary permission for fishing in sea or estuary.
  • The applicant can be a farmer, a tenant farmer, SHGs, JLGs, and dairy farmer who either owns or lease or rent sheds.
  • Joint or individual farmers, SHGs, JLGs, or tenant farmers of rabbit, sheep, pigs, birds, poultry, along with having a shed which they either own, rent or leased.

How to Apply for Kisan Credit Card Online?

Some banks have the facility to let applicants apply for the Kisan Credit through their website, while with all banks you can visit the branch with necessary documents and apply for KCC.

Following are steps to for online application of Kisan Credit Card are:

  • Visit the official website of the bank through which you want to apply for KCC.
  • Find the option of ‘Kisan Credit Card’ among the list of credit cards or under agricultural products or services.
  • Click on the ‘Apply’ button; you will be redirected to an application form.
  • Fill the form with all the required information accurately, and click on ‘Submit’.
  • After the application is submitted, you will get a reference number from the system, take note of that number for future queries.

Kisan Credit Card Interest Rate

Through Kisan Credit Card farmers can borrow short term loans. The interest charged on these loans is 4% on the condition of timely payment. However, the interest can be reduced by up to 3% based on the discretion of the bank and prompt repayment of the loan by the farmer.

Documents Required for KCC

To get a Kisan Credit Card, a farmer is required to furnish identity and address proof. Following is the list of approved documents for the same purpose:

Identity Proof

  • Voter ID
  • Passport
  • PAN Card
  • Person of Indian Origin Card
  • Job card issued under MNREGA
  • Letter issued by UIDAI
  • Aadhaar Card
  • Driving License

Address Proof

  • Ration Card
  • Person of Indian Origin Card
  • Passport
  • Property Registration document
  • Job card issued under MNREGA
  • Aadhaar Card
  • Driving License
  • Bank account statement or passbook.
  • Utility bill like Electricity bill or Water bill.


What is the process of KCC loan?

After you have applied for the KCC, the bank will assess your eligibility and inform you in 3-4 days. If you are eligible then you will be required to submit the required documents, the documents can either be submitted in the branch, or you can book an appointment to get it collected from your home. After successful verification for the documents, the card will be sent to your home address.

What is the validity period of the Kisan Credit Card?

The validity period of the Kisan Credit Card is 5 years.

What is the KCC limit?

The maximum limit of KCC varies with each bank. However, for the farmer, it is decided based on the estimated income of the farmer, the harvesting and cultivation pattern, etc.

What is a crop loan?

A crop loan is a short term loan advanced by the bank to farmers and agriculturalists for the purchase of seeds, fertilizers, machinery, etc.

What is the interest rate applicable on the Kisan Credit Card?

The interest rate on the Kisan Credit Card starts from 4%.

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*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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