Kisan Credit Card (KCC): The Kisan Credit Card scheme offers low-interest loans to millions of farmers across India. Its goal is to provide easy and timely credit for agriculture and related needs.
Farmers can use the loan for short-term farming, post-harvest costs, household expenses, animal care, and farm maintenance.
The government offers a 2% interest subsidy and an extra 3% discount for timely repayment, bringing the effective interest rate down to just 4% per year.
This is one of the cheapest farm loan options in the country. Let’s understand what the KCC is, how it works, and how farmers can benefit from it.
What Is the Kisan Credit Card Scheme?
The KCC scheme was launched in 1998 to provide quick credit to farmers. It helps them buy seeds, fertilizers, and equipment without relying on high-interest loans.
The KCC also works like a debit card, allowing farmers to withdraw money from ATMs.
As per government data, India has over 7.75 crore active KCC accounts. Loan disbursement under this scheme has grown fast—from ₹4.26 lakh crore in 2014 to ₹10.05 lakh crore by December 2024. This shows the rising need and trust in KCC among farmers.
How Much Loan Can a Farmer Get?
Loan amount depends on factors like the type of crop, size of land, farming costs, insurance, and machinery maintenance.
A new limit is calculated each year by assuming a 10% natural increase for the next five years.
In Budget 2025, Finance Minister Nirmala Sitharaman raised the maximum KCC loan limit from ₹3 lakh to ₹5 lakh.
Loans up to ₹2 lakh are collateral-free, meaning farmers don’t need to pledge any assets. For amounts above ₹2 lakh, banks may ask for collateral as per their policy.
Why Is the Card Limit Split Into Two Parts?
This is because short-term loans (for crops) and term loans (for things like tractors or irrigation systems) have different interest rates, repayment terms, and subsidies.
So, banks divide the KCC limit into two parts, making it easier for both farmers and banks to manage.
How Does the KCC Work?
The KCC is a multi-purpose digital debit card given by the bank. With this, farmers can withdraw cash or buy products from ATMs, Bank Mitra outlets, mobile apps, or PoS machines at seed or fertilizer shops. It can also be linked to Aadhaar or biometric ID for secure use.
Where Can the Card Be Used?
Farmers can use this card for transactions through ATMs, Bank Mitras, mobile banking, and Aadhaar-based systems.
This saves time and lets farmers buy what they need without standing in long bank lines.
Who Can Apply for the KCC?
Land-owning farmers (individual or joint owners)
Sharecroppers, tenant farmers, and oral leaseholders
Farmer groups like SHGs (Self Help Groups) and JLGs (Joint Liability Groups)
Online Application Process
Visit the official website of your preferred bank.
Choose the Kisan Credit Card option.
Click on Apply.
Fill in the required details and submit.
You’ll receive an application number; the bank will contact you in 3–4 days.
For offline applications, farmers can visit the nearest bank branch, fill out the form, and submit it. The bank will review the documents and approve the card based on eligibility.
Documents Needed
Completed application form
ID and address proof (Aadhaar, driving license, etc.)
Passport-size photo
Proof of land ownership
Crop pattern details
Collateral or guarantee documents if loan exceeds ₹1.60 lakh
The Kisan Credit Card Scheme is a strong support system for farmers, offering low-interest loans with a simple process and digital access.
For small and marginal farmers, this scheme makes farming easier and supports their journey toward self-reliance.
