Kisan Credit Card Scheme
- Quick Summary
- Benefits
- Eligibility Criteria
- Who is NOT Eligible
- Financial Assistance
- Interest Rate Breakdown
- Loan and Collateral Limits
- Interest Subvention Limit
- Documents Required
- How to Apply
- Online Process
- Offline Process
- Important Links
- About the Scheme
- What is the KCC?
- Why Was It Launched?
- How Does It Work?
- Latest Updates (2026)
- Comparison
- Common Mistakes While Applying
- Frequently Asked Questions
- Conclusion
Quick Summary
| Detail | Information |
|---|---|
| Scheme Name | Kisan Credit Card (KCC) |
| Launched On | 1998 |
| Launched By | Government of India (through NABARD) |
| Ministry/Department | Ministry of Agriculture / Ministry of Finance / NABARD / RBI |
| Scheme Type | Central Government Scheme |
| Beneficiaries | Farmers, fishermen, dairy farmers, animal husbandry practitioners |
| Financial Assistance | Revolving credit at 4% effective interest (with timely repayment) |
| Application Mode | Online (Jan Samarth Portal / Bank Websites) / Offline (Bank Branch / CSC) |
| Official Website | jansamarth.in / pmkisan.gov.in |
Benefits
- Effective interest rate of just 4% per annum for farmers who repay on time — the lowest available credit rate for any agricultural loan in India.
- Collateral-free loans up to ₹2 lakh — no security or guarantee needed.
- Revolving credit facility — withdraw and repay multiple times during the crop cycle without applying for a new loan each season.
- 5-year card validity — no need to renew annually; only an annual review is conducted by the bank.
- RuPay debit card — use it at any ATM, micro-ATM, or POS terminal across India, 24/7.
- Interest charged only on amount withdrawn — not on the entire sanctioned credit limit.
- Covers crop farming and allied activities — dairy, fisheries, animal husbandry, poultry, and beekeeping.
- Personal accident insurance — ₹50,000 for death and ₹25,000 for permanent disability under PAIS.
- Crop insurance integration — PMFBY premiums can be deducted directly from the KCC account.
Eligibility Criteria
- Owner-cultivators — farmers who own agricultural land.
- Tenant farmers, oral lessees, and sharecroppers — with or without formal tenancy agreements.
- Joint borrowers — two or more farmers cultivating land together.
- Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers.
- Fishermen and fish farmers — inland fishers, marine fishers, those who own/lease ponds, tanks, or fishing vessels.
- Dairy farmers — those engaged in milk production with milch animals.
- Animal husbandry practitioners — poultry, sheep, goat, pig, and rabbit rearers.
- Age: 18–75 years. For applicants above 60, a co-borrower (legal heir) is generally required.
Who is NOT Eligible
- Applicants below 18 years of age.
- Farmers with an existing loan default or NPA at any bank.
- Land under legal dispute — banks will not process the KCC.
- Applicants unable to provide valid land records or proof of allied activity (dairy, fishery, etc.).
- Persons who own only non-cultivable or barren land.
- Applicants who have submitted fraudulent or forged documents in previous banking interactions.
Financial Assistance
Interest Rate Breakdown
| Component | Rate |
|---|---|
| Base Interest Rate | 7% per annum |
| Government Subvention | (-) 2% |
| Rate After Subvention | 5% per annum |
| Prompt Repayment Incentive | (-) 3% |
| Effective Rate (Timely Repayers) | 4% per annum |
Loan and Collateral Limits
| Loan Amount | Collateral Required |
|---|---|
| Up to ₹2 lakh | No collateral needed |
| ₹2 lakh – ₹3 lakh | Hypothecation of crops only |
| Above ₹3 lakh | As per bank's collateral policy |
Interest Subvention Limit
The Modified Interest Subvention Scheme (MISS) currently applies to short-term crop loans up to ₹3 lakh. The Union Budget 2025–26 announced an enhancement to ₹5 lakh, but operational guidelines for FY 2025–26 continue to cap the subvention at ₹3 lakh. Confirm the current applicable limit with your bank.
Documents Required
- Aadhaar Card (mandatory for e-KYC)
- PAN Card (required for loans above ₹50,000)
- Address Proof (Voter ID, Driving License, or Aadhaar)
- Two Passport-size Photographs
- Land Records — Khatauni, 7/12 extract, RoR, or land possession certificate
- Cropping Pattern Details — list of crops grown and area cultivated
- Tenancy Agreement (for tenant farmers/sharecroppers)
- Proof of Allied Activity — ownership/lease proof for dairy sheds, fish ponds, fishing vessels, or poultry farm (for non-crop KCC)
- Fishing License (for marine fishers)
How to Apply
Online Process
Through Jan Samarth Portal:
- Visit jansamarth.in.
- Select "Kisan Credit Card" from the loan products.
- Register with your mobile number and Aadhaar.
- Complete Aadhaar-based e-KYC.
- Fill in the form — personal details, land details, crop pattern, preferred bank.
- Submit. You will receive a tracking ID.
- The portal routes your application to the appropriate bank branch. The bank contacts you for verification.
Through Bank Websites:
- Visit the website of SBI, PNB, Bank of India, or your preferred bank.
- Navigate to the Agriculture / Kisan Credit Card section.
- Fill in the online form and upload documents.
- Track the application through the bank's portal.
Offline Process
- Visit the nearest branch of a Commercial Bank, Regional Rural Bank (RRB), or Cooperative Bank.
- Request the KCC application form.
- Fill in all details — personal information, land records, crops, existing loans.
- Attach copies of all documents.
- Submit at the counter.
- The bank may conduct a field visit to verify your land or farm activity.
- After approval, the bank issues the RuPay KCC card and passbook.
You can also apply through Common Service Centres (CSC) or through your milk cooperative/farmer producer company (for dairy KCC).
Important Links
| Purpose | Link |
|---|---|
| Jan Samarth Portal (Apply Online) | jansamarth.in |
| PM-KISAN Portal (KCC Module) | pmkisan.gov.in |
| Kisan Rin Portal (Track KCC Status) | fasalrin.gov.in |
| NABARD | nabard.org |
| RBI KCC Guidelines | rbi.org.in |
| MyScheme Portal | myscheme.gov.in |
| SBI KCC Page | sbi.co.in |
| Helpline | Contact your bank branch directly |
About the Scheme
What is the KCC?
The Kisan Credit Card is a revolving credit facility for farmers — similar to a credit card, but designed specifically for agriculture. Instead of applying for a new loan every season, farmers receive a sanctioned credit limit that they can use throughout the year. They withdraw money when they need it (for seeds, fertilisers, labour, or household costs) and repay it when income arrives (after selling their produce).
Why Was It Launched?
Before the KCC, farmers had to apply for separate term loans every cropping season. The process was slow, paperwork-heavy, and often pushed farmers towards informal money lenders charging 30%–50% interest. NABARD designed the KCC in 1998 to give farmers instant access to affordable credit — just like a credit card works for consumers.
How Does It Work?
The bank calculates your credit limit based on the Scale of Finance for your crop and the area you cultivate. This limit is sanctioned for 5 years, with an annual review and a small annual increment (typically 10%) to account for rising input costs. You receive a RuPay-enabled card that works at any ATM. Interest is charged only on the amount you withdraw, not on the full limit. If you repay within the crop cycle (usually 12 months), you benefit from the government's interest subvention, bringing your effective rate down to 4%.
Latest Updates (2026)
- Interest subvention at 4% (effective rate) continues for short-term crop loans up to ₹3 lakh with timely repayment.
- Budget 2025–26 announced the enhancement of the MISS limit from ₹3 lakh to ₹5 lakh. Implementation is underway — confirm current status with your bank.
- Collateral-free credit up to ₹2 lakh per borrower remains in effect.
- KCC for allied activities — fisheries, dairy, animal husbandry, poultry, and beekeeping continue to be covered.
- Digital applications via Jan Samarth portal and PM-KISAN portal are operational for KCC tracking.
- RuPay-enabled cards with 24/7 ATM and biometric authentication access are standard.
Comparison
| Feature | Kisan Credit Card (KCC) | Regular Agricultural Term Loan |
|---|---|---|
| Type | Revolving credit (overdraft) | One-time loan disbursement |
| Repayment | Flexible — repay and re-borrow within limit | Fixed EMIs over loan tenure |
| Interest Rate | 4% effective (with subvention + prompt repayment) | 8%–12% (varies by bank) |
| Validity | 5 years (annual review) | Fixed loan tenure (1–7 years) |
| Collateral (up to ₹2L) | None | May be required |
| Card/ATM Access | Yes — RuPay card | No |
| Best For | Recurring seasonal expenses | One-time capital investment |
Common Mistakes While Applying
- Applying with outstanding loan defaults — Banks will reject the application if you have unpaid overdues or NPA classification at any bank.
- Not carrying cropping pattern details — The bank needs your crop list and cultivated area to calculate the credit limit. Without this, processing is delayed.
- Incorrect land records — Outdated or mismatched land documents are a frequent reason for rejection. Get your records updated at the revenue department before applying.
- Ignoring annual review — Even though the KCC is valid for 5 years, skipping the annual review can lead to account suspension. Visit your bank branch before each review date.
- Late repayment — Missing the repayment deadline costs you the 3% prompt repayment incentive, increasing your interest rate from 4% to 7%.
- Using KCC for non-agricultural purposes — The credit is meant for farming expenses. Banks monitor usage, and misuse can lead to account closure.
- Not applying for allied activities KCC — If you also run a dairy or fishery, you may be missing out on additional credit at subsidised rates. Apply separately for an allied-activity KCC.
Frequently Asked Questions
What is the interest rate on a KCC loan?
The base rate is 7%. With the government's 2% subvention and 3% prompt repayment incentive, the effective rate for timely repayers is just 4% per annum.
How much loan can I get without collateral?
Up to ₹2 lakh — no collateral or security is required.
Can fishermen and dairy farmers get a KCC?
Yes. The KCC has been extended to fisheries, dairy, animal husbandry, poultry, and beekeeping.
How long is the KCC valid?
5 years from the date of issue, with an annual review by the bank.
Can I use the KCC at an ATM?
Yes. The KCC comes with a RuPay debit card that works at any ATM, micro-ATM, or POS terminal in India.
What happens if I don't repay on time?
You lose the 3% prompt repayment incentive, and your interest rate goes up to 7%. Continued default leads to NPA classification and can result in legal recovery.
Can tenant farmers get a KCC?
Yes. Tenant farmers, oral lessees, and sharecroppers are eligible. They need to provide a tenancy agreement or a joint declaration with the landowner.
Is there a processing fee?
Banks may charge a small fee, but many waive it for loans up to ₹3 lakh. Check with your branch.
Can I hold more than one KCC?
You can hold separate KCCs for different purposes (e.g., one for crops and one for dairy), but not multiple KCCs for the same purpose at different banks.
What is the ₹5 lakh limit announced in Budget 2025–26?
The Budget announced enhancing the MISS limit to ₹5 lakh. However, operational guidelines for FY 2025–26 continue to apply the subvention on loans up to ₹3 lakh. The ₹5 lakh limit is expected to be operationalised progressively. Confirm the current status with your bank.
Conclusion
The Kisan Credit Card is India's most farmer-friendly credit product, offering revolving agricultural loans at an effective interest rate of just 4% for prompt repayers. With collateral-free access up to ₹2 lakh, a 5-year validity, and coverage for crop farming, dairy, fisheries, and animal husbandry, the KCC is designed to free farmers from expensive informal borrowing. If you are a farmer who has not yet applied, visit your nearest bank branch or apply online through jansamarth.in — it is one of the most practical financial tools available for Indian agriculture today.
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