Agriculture is the backbone of the Indian economy, and to support farmers, the Government of India introduced the Kisan Credit Card (KCC) scheme in August 1998. This initiative aims to provide farmers with timely credit assistance for their agricultural and allied needs, ensuring they have access to funds when required. Over the years, the scheme has expanded to include loans for fisheries and animal husbandry, making it an essential tool for rural financial empowerment.
As of March 2023, there were 7.35 crore KCC accounts, with loans amounting to ₹8.85 lakh crore sanctioned under the scheme. see on gov portal.
Key Features of the KCC Scheme
- Simplified Credit Access: Farmers can obtain short-term and long-term credit for agricultural expenses.
- Low Interest Rates: Farmers benefit from interest subvention, reducing loan costs significantly.
- Flexible Repayment Options: Loan repayment is aligned with harvesting periods.
- Minimal Documentation: The application process is straightforward with minimal paperwork.
- Collateral-Free Loans: Loans up to ₹1.6 lakh do not require security.
- Accident Insurance Cover: Provides up to ₹50,000 for accidental death or permanent disability and ₹25,000 for other risks.
- Validity: The card is valid for five years and can be extended for three more years.
- Digital & Online Application: Farmers can now apply for KCC through online portals like Jan Samarth and various bank websites.
Benefits of the KCC Scheme
1. Financial Security for Farmers
KCC provides much-needed liquidity to farmers, ensuring they can buy seeds, fertilizers, and farming equipment without delay.
2. Interest Rate Subsidy
Under the Modified Interest Subvention Scheme (MISS):
- Farmers can avail of loans up to ₹3 lakh at 7% interest per annum.
- A 3% Prompt Repayment Incentive (PRI) is given for timely repayments, effectively reducing the interest rate to 4%.
- For animal husbandry and fisheries, interest subvention up to ₹2 lakh is provided under the total limit of ₹3 lakh.
3. Quick and Hassle-Free Loan Process
- Farmers can apply for KCC online within 15 minutes.
- No hidden charges or processing fees.
- Easy renewal and enhanced credit limit based on cropping patterns.
4. Inclusion of Allied Activities
Since 2019, KCC loans are available for poultry, dairy farming, fisheries, and beekeeping, ensuring financial support for rural entrepreneurs.
5. Secure & Insured Loans
KCC comes with an insurance cover, protecting farmers from unforeseen risks.
How to Apply for a Kisan Credit Card
Eligibility
- Individual farmers, joint borrowers, tenant farmers, sharecroppers.
- Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) involved in farming.
Documents Required
- Identity Proof: Aadhaar card, PAN card, voter ID, or passport.
- Address Proof: Ration card, utility bill, or Aadhaar.
- Land Ownership Proof: Record of landholding (for owner-cultivators).
- Bank Account Details and Passport-sized Photographs.
Step-by-Step Application Process
- Visit the Bank Website or nearest branch (e.g., SBI, PNB, BOI, etc.).
- Select ‘Kisan Credit Card’ and click ‘Apply’.
- Fill in the application form with required details and submit.
- Receive an application reference number.
- Bank verification and loan sanction (usually within 3-4 working days).
Farmers can also use MyScheme Portal (myscheme.gov.in) to check eligibility and apply.
Loan Limits Under KCC
For Crop Cultivation
- Loan is determined based on the scale of finance per crop.
- Additional 10% for post-harvest needs and 20% for maintenance.
For Farmers Growing Multiple Crops
- Loan is fixed as per the cropping pattern for the first year.
- 10% additional limit is given for cost escalation each year.
- The fifth-year limit serves as the Maximum Permissible Limit (MPL).
For Long-Term Investments
- Loans are provided for land development, irrigation, machinery purchases, and farm infrastructure.
- Sub-limits are created for short-term and long-term credit needs.
KCC & Government Digital Initiatives
The Jan Samarth Portal is a digital platform that connects farmers with KCC and other financial schemes. Farmers can:
- Check eligibility for loans.
- Apply online and track application status.
- Receive digital loan approvals.
Banks Offering KCC Loans
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of India (BOI)
- Regional Rural Banks (RRBs)
- Gramin Banks and Cooperative Banks
The Kisan Credit Card (KCC) scheme has transformed agricultural financing in India by providing affordable, flexible, and secure credit. By supporting farmers in crop production, animal husbandry, and allied sectors, KCC strengthens India’s food security and rural economy.
With digital advancements making KCC application simpler and faster, farmers can now access credit with just a few clicks. If you or someone you know is a farmer, applying for a KCC could be a game-changer!
Have you benefited from the Kisan Credit Card scheme? Share your experiences in the comments! Don’t forget to subscribe to our newsletter for the latest updates on government schemes and financial assistance for farmers.
For more information, visit the official websites of participating banks or government portals like MyScheme and Jan Samarth.
