Kisan Credit Card Scheme: Eligibility, Benefits & Apply Online
The Kisan Credit Card is a flagship Government of India scheme designed to provide timely and affordable credit to farmers for their agricultural and allied activities. Introduced to reduce farmers’ dependency on informal lenders, the KCC scheme ensures easy access to short-term loans at subsidized interest rates through banks and cooperative institutions.
This detailed guide explains what KCC is, its benefits, eligibility, interest rates, documents required, and the step-by-step application process.
What is Kisan Credit Card?
The Kisan Credit Card (KCC) is a credit facility offered to farmers to meet their cultivation expenses, post-harvest needs, marketing costs, and allied activities such as dairy, fisheries, and animal husbandry. Under this scheme, eligible farmers receive a KCC card that works like a revolving credit account.
Farmers can withdraw money as needed and repay it according to the crop cycle, making it a flexible and farmer-friendly loan system.
Objectives of Kisan Credit Card Scheme
The primary objectives of the KCC scheme are:
- To provide timely credit to farmers
- To reduce dependency on moneylenders
- To support crop production and allied activities
- To offer loans at low interest rates
- To simplify agricultural financing
Key Features of Kisan Credit Card
- Short-term and working capital loan
- Revolving credit facility
- Interest subvention by the government
- Crop insurance coverage
- Flexible repayment schedule
- ATM / Debit card facility
Benefits of Kisan Credit Card
Low Interest Rate on KCC Loan
The (KCC) scheme offers agricultural loans at a highly affordable base interest rate of 7% per annum, making it one of the cheapest credit options available for farmers in India. This low interest rate helps farmers manage cultivation costs such as seeds, fertilizers, pesticides, irrigation, and labor without facing financial stress.
Compared to private lenders and moneylenders who charge very high interest rates, KCC ensures institutional credit at subsidized rates, enabling farmers to increase productivity and profitability while avoiding debt traps.
Interest Subvention & Government Subsidy
One of the biggest advantages of the KCC scheme is the interest subvention benefit provided by the Government of India. Farmers who repay their KCC loan on time are eligible for an additional 3% interest subvention, which effectively reduces the interest rate from 7% to just 4% per annum.
This subsidy encourages timely repayment and rewards disciplined borrowers. The interest subvention scheme significantly lowers the financial burden on farmers and promotes sustainable agricultural financing across the country.
Flexible Withdrawal & Repayment Facility
The KCC provides a revolving credit facility, allowing farmers to withdraw funds multiple times within the sanctioned credit limit as per their requirement. This flexibility is especially useful during different stages of the crop cycle, such as sowing, harvesting, and post-harvest operations.
Repayment under KCC is also farmer-friendly, as it is aligned with the harvesting and marketing cycle of crops. Farmers can repay the loan after selling their produce, ensuring better cash flow management and reduced repayment pressure.
Insurance Coverage under KCC
KCC holders are provided with insurance protection under the Personal Accident Insurance Scheme (PAIS), which offers financial security to farmers and their families in case of accidental death or permanent disability. In addition, eligible farmers are also covered under various crop insurance schemes, protecting them against crop loss due to natural calamities, pests, or diseases.
This insurance coverage makes the KCC not just a loan facility, but a comprehensive financial safety net for farmers, reducing risk and ensuring long-term stability.
Kisan Credit Card Eligibility Criteria
Eligibility for Farmers
- Small and marginal farmers
- Individual farmers
- Owner-cultivators
Eligibility for Tenant Farmers & Sharecroppers
- Tenant farmers
- Oral lessees
- Sharecroppers
- Joint Liability Groups (JLGs)
Eligibility for Fisheries & Animal Husbandry
- Dairy farmers
- Poultry farmers
- Fishermen
- Animal husbandry practitioners
Documents Required for Kisan Credit Card
Applicants must submit the following documents:
- Aadhaar Card
- Identity Proof
- Address Proof
- Land ownership or cultivation proof
- Passport-size photographs
- Bank account details
KCC Loan Limit & Interest Rate
Maximum Loan Amount under KCC
The loan limit depends on:
- Type of crop
- Area of cultivation
- Scale of finance fixed by banks
Generally, loans up to ₹3 lakh are issued under KCC.
Current Interest Rate on KCC
- Standard interest rate: 7% per annum
- With subsidy: 4% per annum (on timely repayment)
Repayment Period & Renewal
- Short-term loans: 12 months
- Card validity: 5 years (subject to annual review)
How to Apply for Kisan Credit Card?
Online Application Process for KCC
- Visit the official bank or PM Kisan portal
- Download the KCC application form
- Fill in the required details
- Upload necessary documents
- Submit the form online
Offline Application through Bank
- Visit your nearest bank branch
- Collect the KCC application form
- Fill and submit with documents
- Verification by bank officials
- Issuance of KCC card
Kisan Credit Card Application Status Check
Applicants can check their KCC status through:
- Bank website
- Branch visit
- Customer care number
Banks Providing Kisan Credit Card
The KCC scheme is implemented across India through various banking institutions to ensure maximum reach among farmers, especially in rural and semi-urban areas. Different types of banks participate in issuing KCCs based on regional accessibility and farmer needs.
Public Sector Banks
Public sector banks play a major role in the successful implementation of the kCC scheme. These banks have a wide branch network and offer reliable agricultural credit services.
Major Public Sector Banks providing KCC include:
- State Bank of India (SBI) – The largest issuer of KCC in India, offering easy application, flexible limits, and digital banking support.
- Punjab National Bank (PNB) – Provides KCC loans with attractive interest rates and farmer-friendly repayment options.
- Bank of Baroda – Offers KCC facilities for crop production, allied activities, and working capital needs.
Public sector banks ensure transparency, quick processing, and access to government subsidies under the KCC scheme.
Regional Rural Banks (RRBs)
Regional Rural Banks (RRBs) are specially designed to serve farmers in rural and semi-urban regions. These banks focus on providing financial inclusion to small and marginal farmers who may have limited access to urban banking services.
RRBs offer:
- Easy KCC application process
- Local language support
- Better understanding of regional cropping patterns
Because of their strong rural presence, RRBs play a crucial role in delivering KCC benefits at the grassroots level.
Cooperative Banks
Cooperative Banks and Primary Agricultural Credit Societies (PACS) are deeply rooted in village-level financial systems. PACS act as the first point of contact for many farmers seeking agricultural loans.
Under the KCC scheme, cooperative banks:
- Issue KCCs to small and marginal farmers
- Provide quick credit with minimal documentation
- Support local agricultural activities
Their proximity to farmers makes cooperative banks an important pillar of the KCC ecosystem.
Kisan Credit Card for PM Kisan Beneficiaries
Farmers who are already enrolled under the PM Kisan Samman Nidhi Yojana can easily apply for the KCC. The government has simplified the process to ensure that PM Kisan beneficiaries get timely and hassle-free credit.
Benefits for PM Kisan beneficiaries:
- Faster KCC approval process
- Simplified documentation
- PM Kisan registration number used as reference
This integration helps eligible farmers access institutional credit quickly, improving agricultural productivity and reducing dependence on informal loans.
Kisan Credit Card for Dairy, Fisheries & Animal Husbandry
The KCC scheme has been extended beyond crop farmers to include dairy farmers, fishermen, and animal husbandry practitioners. This expansion aims to support allied agricultural activities that contribute significantly to rural income.
Under this category, KCC loans can be used for:
- Dairy farming and milk production
- Poultry and livestock rearing
- Fisheries and aquaculture activities
- Purchase of feed, equipment, and working capital
By covering allied sectors, the KCC scheme promotes diversified farming, stable income sources, and overall rural economic development.nimal Husbandry
Kisan Credit Card Insurance Coverage
KCC holders receive:
- Personal accident insurance
- Crop insurance benefits
- Financial security against unforeseen events
Common Reasons for KCC Application Rejection
- Incomplete documentation
- Poor credit history
- Incorrect land records
- Ineligibility under scheme guidelines
Frequently Asked Questions (FAQs)
Important Links
Sources & References
- Ministry of Agriculture & Farmers Welfare
- Reserve Bank of India (RBI)
- Government of India Scheme Notifications
Conclusion:
The Kisan Credit Card (KCC) is one of the most beneficial schemes for Indian farmers, offering low-interest loans, flexible repayment, and financial security. Farmers engaged in agriculture and allied sectors should apply for KCC to improve productivity and reduce financial burden.