Kisan Credit Card (KCC) Scheme

The Kisan Credit Card (KCC) Scheme is a landmark initiative launched by the Government of India to provide timely and affordable credit to farmers. It aims to empower farmers with access to institutional credit for agricultural and allied activities like animal husbandry, fisheries, and more.

Whether you are a small farmer or engaged in allied sectors, the KCC scheme can help reduce your dependence on informal lenders and enhance productivity. Here’s everything you need to know about the Kisan Credit Card Scheme in 2025.

What is the Kisan Credit Card (KCC) Scheme?

The Kisan Credit Card Scheme was introduced in 1998 by NABARD (National Bank for Agriculture and Rural Development) to provide short-term, revolving credit to farmers. It offers loans at subsidized interest rates for crop production and allied needs like buying seeds, fertilizers, machinery, and maintaining farm animals.

Key Features of the KCC Scheme

Loan Amount: Up to ₹3 lakh

Interest Rate: Base rate of 7% per annum; effective rate as low as 4% with timely repayment

Validity: KCC is valid for 5 years and can be renewed

Collateral-Free Limit: Loans up to ₹1.6 lakh are available without collateral

Usage: For crop cultivation, post-harvest expenses, equipment purchase, animal husbandry, and fisheries

Insurance: KCC holders are covered under Pradhan Mantri Fasal Bima Yojana and personal accident insurance

Eligibility Criteria for KCC Scheme

The following individuals are eligible to apply for the Kisan Credit Card:

Farmers who own cultivable land

Tenant farmers and sharecroppers

Self-help groups (SHGs) and Joint Liability Groups (JLGs)

Individuals engaged in animal husbandry, dairy, or fisheries

Note: Credit history and repayment capacity are considered before loan sanction.

Documents Required for Kisan Credit Card

To apply for the KCC, the following documents are usually required:

Aadhaar Card and PAN Card

Voter ID or Driving License (as identity proof)

Land ownership documents or lease agreement

Recent passport-size photograph

Bank account details (passbook or canceled cheque)

Proof of income or farming activity (if applicable)

Interest Rates & Subsidy in KCC Scheme

• Base Interest Rate: 7% per annum (fixed by RBI)
• Interest Subsidy: 2% interest subvention + 3% additional subvention on timely repayment
• Effective Rate: 4% interest if repaid on time (for loans up to ₹3 lakh)

This interest benefit helps reduce the burden on small and marginal farmers.

How to Apply for a Kisan Credit Card?

Farmers can apply for a KCC either online or offline:

Online Application Process:

Visit the official PM Kisan portal: https://pmkisan.gov.in

Click on Kisan Credit Card (KCC) Form under the “Farmer Corner”

Fill in the required details and download the form

Submit the filled form at your nearest bank branch

Offline Application Process:

Visit your nearest bank branch (e.g., SBI, PNB, Bank of Baroda, HDFC, etc.)

Ask for the KCC application form

Submit the filled form with supporting documents

The bank will verify your details and approve the credit limit

Banks like SBI, NABARD, Axis Bank, ICICI Bank, and cooperative banks actively issue KCCs.

How KCC Benefits a Small Farmer

Suppose a small farmer in Rajasthan applies for a KCC and receives a ₹1.5 lakh loan. If he repays the loan on time, he pays only 4% interest instead of the usual 7%. Additionally, he uses this credit for seeds, irrigation, and dairy maintenance—boosting his yield and income without relying on local moneylenders.