Kisan Credit Card (KCC) Scheme

profile picture BookMyCrop Aug 17, 2021

The Pradhan Mantri Kisan Samman Nidhi Yojana is now linked to the PM Kisan Credit Cards. Farmers can apply for a loan of up to Rs.3 lakh from KCC at a 4% interest rate. Beneficiaries of PM Kisan can now apply for KCC more easily.


The Kisan Finance Card plan is a scheme run by the Government of India that offers farmers with timely access to credit. NABARD introduced the Kisan Loans Card (KCC) initiative in 1998 with the goal of providing farmers with short-term formal credit (National Bank for Agriculture and Rural Development).

The implementation of KCC system was carried out to ensure that the credit needs of all the Indian farmers concerning fishery, agriculture, and/or animal husbandry were addressed. This was accomplished by assisting them in obtaining short-term loans and providing them with a credit limit for the purchase of equipment as well as other expenses.

Furthermore, with the support of KCC, farmers are spared from the exorbitant interest rates of ordinary bank loans, as the interest rate for KCC starts as low as 2% and averages at 4%. Farmers can use this system to repay their debts based on the harvesting season of the crop for which the loan was granted.

Benefits of Kisan Credit Card:

  • Farmers are provided credit for covering their financial needs for agricultural and related operations, as well as post-harvest expenses.

  • Investment finance for agricultural needs such as dairy animals, pump sets, and so on.

  • Farmers can obtain a loan of up to Rs.3 lakh as well as produce marketing loans.

  • In the event of permanent incapacity or death, KCC programme holders are covered up to Rs.50,000/- in insurance. Cover of Rs.25,000/- will be awarded incase if any other hazardous event occurs.

  • Aside from the Kisan Credit Card, qualified farmers will also receive a savings account with a competitive interest rate, a smart card, and a debit card.

  • Flexible repayment options and a straightforward payout procedure

  • A single credit facility/term loan is available for all agricultural and related needs.

  • Assistance in the procurement of fertilisers, seeds, and other agricultural supplies, as well as obtaining cash discounts from merchants/dealers.

  • Credit is provided for up to three years, with repayment possible after the harvest season.

  • For loans of up to Rs.1.60 lakh, no collateral is required.

Interest and Other Charges on Kisan Credit Cards:

The interest rate on the KCC varies from bank to bank, as does the credit limit. KCC's interest rate, on the other hand, might be as low as 2% and as high as 4%.

Furthermore, the government provides specific subsidies and incentives to farmers in terms of interest rates. These would be determined by the cardholder's payback history and overall credit history.

Other costs and expenses, such as processing fees, insurance premiums (if applicable), land mortgage deed charges, and so on, would be established at the issuing bank's discretion.

Eligibility Criteria for KCC Scheme:

The following are the eligibility requirements for the KCC scheme:

  • Any individual farmer who cultivates his or her own land.

  • Individuals who are members of a group and co-borrowers. The members of the group must be growers as well as owners.

  • The KCC is available to sharecroppers, tenant farmers, and oral lessees.

  • Farmers, tenant farmers, sharecroppers, and others belonging either form self-help groups (SHGs) or the joint liability groups (JLGs).

  • Farmers engaged in agricultural cultivation or linked activities such as animal husbandry, as well as non-farm activities such as fisherman

Beneficiaries of this scheme in the fields of fisheries and animal husbandry include:

  • Fish farmers, fishermen, SHGs, JLGs, and women's groups work in inland fisheries and aquaculture. As a beneficiary, you must own or lease any fisheries-related activity. This includes owning or leasing a pond, a tank, or an open water body among other things.

  • Marine Fisheries: You own a registered boat or another sort of fishing craft and have the required licences or permits to fish in estuaries or at sea.

  • Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, and poultry who own, rent, or lease sheds.

  • Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own, lease, or rent sheds are classified as dairy farmers.

Documents Required for Application under KCC Scheme:

  • Application form duly completed and signed.

  • A copy of an identity proof, such as an Aadhaar card, PAN card, Voter ID, or driving licence, is required.

  • A copy of an address proof document, such as an Aadhaar card, a PAN card, a voter ID, or a driver's licence. To be valid, the documentation must include the applicant's current address.

  • Land records.

  • A photograph of the applicant in passport size.

  • Other documents, such as security PDCs, may be needed by the issuing bank.

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