Kisan Credit Card 2026

The Kisan Credit Card (KCC) scheme provides easy and timely credit to farmers for their farming needs, Read More... including crop cultivation and allied activities. Read less

Details

The Kisan Credit Card (KCC) scheme is a government initiative launched to ensure farmers have access to affordable and timely credit. Introduced in 1998, it helps farmers meet their agricultural expenses easily.

What Is This Scheme?

The KCC scheme allows farmers to get a credit card that acts like a debit card for their farming needs. It simplifies the process of getting loans for crop cultivation, post-harvest expenses, marketing, and even household consumption needs. The scheme also supports working capital for farm assets and investment credit for agriculture and allied activities.

Who Can Benefit From This Scheme?

This scheme is designed for a wide range of farmers. This includes individual farmers, joint borrowers who own land, tenant farmers, sharecroppers, and even Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers.

Why This Scheme Is Important

The KCC scheme plays a crucial role in supporting Indian agriculture. It aims to provide flexible and simplified credit access, ensuring farmers aren't held back by financial constraints. The government also offers significant interest subvention, making credit available at a very low rate of 4% per annum for prompt repayment.

Objective

The Kisan Credit Card (KCC) scheme provides easy and timely credit to farmers for their farming needs, including crop cultivation and allied activities.

Benefits

Fixation of credit limit/Loan amount

The short-term limit to arrive for the first year: For farmers raising a single crop in a year:Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest / household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance.

Limit for second & subsequent year: First-year limit for crop cultivation purposes arrived at as above plus 10% of the limit towards cost escalation/increase in the scale of finance for every successive year ( 2nd, 3rd, 4th and 5th year) and estimated Term loan component for the tenure of Kisan Credit Card, i.e., five years.

For farmers raising more than one cropin a year, the limit is to be fixed as above depending upon the crops cultivated as per the proposed cropping pattern for the first year and an additional 10% of the limit towards cost escalation/increase in the scale of finance for every successive year (2nd, 3rd, 4th and 5th year). It is assumed that the farmer adopts the same cropping pattern for the remaining four years also. In case the cropping pattern adopted by the farmer is changed in the subsequent year, the limit may be reworked.

Term loans for investmentstowards land development, minor irrigation, purchase of farm equipment and allied agricultural activities. The banks may fix the quantum of credit for the term and working capital limit for agricultural and allied activities, etc., based on the unit cost of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, the bank’s judgment on repayment capacity vis-a-vis total loan burden devolving on the farmer, including existing loan obligations.

The long-term loan limitis based on the proposed investments during the five-year period and the bank’s perception of the repaying capacity of the farmer

Maximum Permissible Limit: The short-term loan limit arrived for the 5th year plus the estimated long-term loan requirement will be the Maximum Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.

Fixation of Sub-limits for other than Marginal Farmers:

Short-termloans and term loans are governed by different interest rates. Besides, at present, short-term crop loans are covered under Interest Subvention Scheme/ Prompt Repayment Incentive scheme. Further, repayment schedules and norms are different for short-term and term loans. Hence, in order to have operational and accounting convenience, the card limit is to be bifurcated into separate sub-limits for short-term cash credit limit cum savings account and term loans.

The drawing limitfor short-term cash credit should be fixed based on the cropping pattern and the amounts for crop production, repairs and maintenance of farm assets and consumption may be allowed to be drawn at the convenience of the farmer. In case the revision of the scale of finance for any year by the district-level committee exceeds the notional hike of 10% contemplated while fixing the five-year limit, a revised drawable limit may be fixed and the farmer is advised about the same. In case such revisions require the card limit itself to be enhanced (4th or 5th year), the same may be done and the farmer be so advised. For term loans, instalments may be allowed to be withdrawn based on the nature of the investment and the repayment schedule drawn as per the economic life of the proposed investments. It is to be ensured that at any point in time, the total liability should be within the drawing limit of the concerned year.

Wherever the card limit/liability so arrived warrants additional security, the banks may take suitable collateral as per their policy.

Sources and references

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Eligibility Criteria

To be eligible for a Kisan Credit Card, you must meet the following criteria:

Individual/Joint Farmers: Those who are owner cultivators.
Tenant Farmers, Share Croppers: Individuals who cultivate land but may not own it.
Self-Help Groups (SHGs) & Joint Liability Groups (JLGs): Groups of farmers, including tenant farmers and share croppers.

How To Apply

You can apply for a Kisan Credit Card through any bank or financial institution that provides it. The process typically involves the following steps:

Obtain the application form from your nearest bank branch or download it from the bank's official website.
Fill out the application form completely and accurately.
Submit the form along with all the required documents to the bank branch.
The bank will process your application and, if approved, issue the Kisan Credit Card.

Note: While the KCC scheme is widely available, specific application procedures might vary slightly between different banks. It's always best to check with your chosen bank for exact details.

Documents Required

To apply for a Kisan Credit Card, you will generally need the following documents:

Completed Application Form
Two Passport Size Photographs
Identity Proof (e.g., Aadhaar Card, Voter ID, Driving License, Passport)
Address Proof (e.g., Aadhaar Card, Driving License)
Proof of Landholding (certified by revenue authorities)
Details of Cropping Pattern (crops grown and acreage)
Security documents, if required for loan limits above Rs. 1.60 lakh or Rs. 3.00 lakh (as applicable per bank policy)
Any other document requested by the bank during the sanction process.

FAQ’s

How long is a Kisan Credit Card valid for?

A Kisan Credit Card is typically valid for 5 years. The exact duration can depend on the type of activity you intend to use the funds for.

What is the minimum and maximum age to apply for KCC?

To apply for a Kisan Credit Card, you need to be at least 18 years old and not older than 75 years. If you are a senior citizen (above 60 years), you must have a co-borrower who is a legal heir.

What are the security requirements for KCC loans?

For loan limits up to Rs. 1.60 lakh (or Rs. 3 lakh in case of tie-ups), the security is the hypothecation of crops. For limits exceeding these norms, additional security like mortgage of land or a third-party guarantee may be required, along with the hypothecated crops or asset.

What are the types of finance available under the Kisan Credit Card scheme?

The scheme primarily offers finance through a Kisan Credit Card and Term Loans for various agricultural and allied activities.

What special benefits does the Indian Government provide to boost finance under KCC?

The government offers a 2% interest subvention and a 3% prompt repayment incentive on KCC loans (for crop loans and working capital for animal husbandry/fisheries). This benefit applies to an overall limit of Rs. 3 lakh per annum, with a maximum of Rs. 2 lakh per farmer for activities solely related to animal husbandry and/or fisheries.

What is the interest rate for loans taken under the KCC?

While banks have some discretion, the interest rate on short-term credit under KCC is generally around 7% per annum, with an upper limit on the principal amount of Rs. 3 lakh, as per the KCC circular dated 20th April 2012. Farmers who repay on time can benefit from interest subvention and prompt repayment incentives.