Kisan Credit Card (KCC)
The Kisan Credit Card (KCC) scheme was introduced in 1998 by NABARD to provide timely and adequate credit support to farmers. It enables them to access loans for crop production, post-harvest expenses, and consumption needs during the farming cycle, all with minimal paperwork and competitive interest rates. Over time, KCC has expanded to cover allied activities like animal husbandry and fisheries.
Ministry
Ministry of Agriculture & RBI
Scheme Details
Overview
The Kisan Credit Card (KCC) scheme was introduced in 1998 by NABARD to provide timely and adequate credit support to farmers. It enables them to access loans for crop production, post-harvest expenses, and consumption needs during the farming cycle, all with minimal paperwork and competitive interest rates. Over time, KCC has expanded to cover allied activities like animal husbandry and fisheries.
Benefits
- Easy and timely access to credit for crop production and allied activities.
- Loan of up to ₹3 lakhs with interest subvention (subsidy).
- Simplified and flexible repayment terms aligned with harvesting season.
- Coverage under crop insurance and accidental insurance schemes.
- KCC can be used as an ATM-enabled RuPay card for transactions.
Eligibility Criteria
- All farmers (individuals, joint borrowers, SHGs, tenant farmers) engaged in agriculture and allied sectors.
- Fish farmers, dairy farmers, poultry owners, and other allied activity workers are also eligible.
- Tenant and sharecroppers can apply with local verification or certificates from panchayat/officials.
- Age should typically be between 18–75 years.
Application Process
Steps to Apply:
- Visit the nearest bank branch (cooperative, public, or private) offering KCC services.
- Fill the KCC application form with details of crops, land ownership or activity.
- Submit required documents and complete KYC verification.
- Bank officer will verify the land/activity and credit history.
- Loan will be sanctioned and KCC card issued (with optional RuPay card).
Application Modes:
- Offline at bank branches (most common).
- Online via respective bank portals.
- UMANG App and Jan Samarth Portal (for selected banks).
Required Documents
- Aadhaar Card and PAN (or Form 60)
- Land records or lease certificate (if applicable)
- Photograph
- Bank account details
- KYC documents (proof of identity and address)
Frequently Asked Questions
What is the interest rate on KCC loans?
The base interest rate is around 7% per annum. Farmers receive a 3% interest subvention (making effective rate 4%) on prompt repayment. Additional state subsidies may apply.
Is collateral required for KCC loans?
Loans up to ₹1.6 lakh generally do not require collateral. Above that, collateral like land or third-party guarantees may be needed.
Can I use the KCC for dairy or fishery activities?
Yes. KCC covers allied sectors such as dairy, fisheries, poultry, etc., under revised guidelines since 2019.
Example Case
Example: Dairy Farmer Using KCC in Uttar Pradesh
Rajveer, a dairy farmer from Etawah, obtained a ₹1.2 lakh KCC loan through a cooperative bank. He used it to buy cattle feed and medicines during the monsoon season. The flexible repayment terms allowed him to pay after milk sales, and he saved money through the interest subsidy.
Important Notes
- KCC also includes an inbuilt accident insurance cover of up to ₹50,000 for permanent disability or death (optional).
- The scheme operates under RBI and NABARD guidelines, implemented through all major banks.
- Annual review and renewal of credit limit are required based on cropping patterns and inflation.
Last Updated
Last Updated: 2025-07-27