Kisan Credit Card Scheme: A Lifeline for Farmers in India

Table of Contents 

• What is a Kisan Credit Card?
• What is the Kisan Credit Card Scheme?
• What are the Objectives of the Kisan Credit Card Scheme? 
  • Short-term Credit Needs 
  • Long-term Credit Needs 
• What is the Credit Limit under Kisan Credit Card Scheme?
• What are the Salient Features of Kisan Credit Card Scheme? 
• What are the Security Requirement under Kisan Credit Card Scheme? 
• Who are the Eligible Borrowers under Kisan Credit Card Scheme?
• What are the Required Documents for Kisan Credit Card? 
• How to Apply for Kisan Credit Card Online? 
• What are the Recent Initiatives to Expand the KCC Scope?
• Conclusion

What is a Kisan Credit Card?

A Kisan Credit Card is a magnetic stripe card with a PIN (Personal Identification Number) and an ISO IIN (International Standards Organization International Identification Number) to enable access to all banks' ATMs and micro-ATMs. As of January 31, 2024, banks have issued 7.50 crores KCC with a limit of Rs. 9.4 lakh crores. 

What is the Kisan Credit Card Scheme? 

Kisan Credit Card (KCC) Scheme was introduced to provide farmers with easy access to affordable credit for their agricultural needs to meet short-term/long-term cultivation requirements, postharvest expenses, consumption requirements, etc. and draw cash for their production needs. The KCC are issued based on land holdings. 

The scheme has undergone various revisions from time to time. In 2004, it was extended to meet the investment credit needs of farmers for non-farm activities. In 2012, Electronic KCC came into existence. 

Recently, the government extended the benefits of interest subvention under KCC to the animal husbandry and fisheries sector.  As of November 2025, the total number of KCC have been sanctioned is 4,94,405 to fishers and fish farmers with disbursed amount of Rs. 3692.73 crores.

What are the Objectives of the Kisan Credit Card Scheme? 

The KCC scheme aims to provide timely and adequate working capital to farmers to meet their short- and long-term credit requirements in a very simplified manner through a single window. The following credit needs of farmers are covered under the scheme: 

Short-term Credit Needs 

• Crop cultivation
• Consumption needs of farmers
• Produce marketing loans
• Expenses for post-harvesting activities
• Working capital for maintenance of farming assets and allied activities

Long-term Credit Needs (Term Loan) 

• Purchase of farm equipment like tractors
• Investment in activities allied to agriculture
• Investment made towards minor irrigation & land development

What is the Credit Limit under Kisan Credit Card Scheme? 

• The maximum permissible limit or total credit limit under KCC is the sum of the short-term credit limit arrived for the 5^th year and the estimated long-term credit requirement.  
• The overall limit under KCC is Rs. 3 lakh per annum and subject to a maximum limit of Rs. 2 lakhs per farmer engaged in animal husbandry activities and/ or fisheries activities. 
• A flexible limit of Rs. 10,000 to Rs. 50,000 may be provided (as Flexi KCC) to the marginal farmers. 

What are the Salient Features of Kisan Credit Card Scheme? 

• Interest Subvention: For short-term crop loans up to Rs. 3 lakhs, an interest subvention of 1.50% (in case of non-prompt repayment) and 3.00% (in case of prompt repayment) on 7% simple interest per annum is provided. Recently, the government has increased the loan limit under the Modified Interest Subvention Scheme from Rs. 3 lakhs to Rs. 5 lakhs.
• Validity: The validity of the KCC is 5 years but is subject to periodic review by the banks. 
• Repayment Period: The repayment period for crop loans is as per the anticipated harvesting and marketing period; for term loans, it is based on the type of investment; and for fisheries and animal husbandry, it is fixed as per the cash flow/income generation pattern of the activity undertaken. 
• Drawing Limit: The scheme fixes the drawing limit on cash credit for short-term needs based on cropping patterns, whereas farmers can withdraw at their convenience in case of loan amounts for maintenance of farm assets, crop production, and consumption. There is no restriction on the number of debits and credits under the scheme, and the short-term component under the KCC is a revolving cash credit facility. 
• Collateral-Free Loan: Under the scheme, farmers can avail of collateral-free loans up to Rs. 1.60 lakhs, and the premium under the scheme is shared between the bank and borrower in a 2:1 ratio. 
• Accidental Insurance: Beneficiaries with KCC are covered with personal accidental insurance of up to Rs. 50,000 (permanent disability and death) and up to Rs. 25,000 (other risks). 
• Electronic Kisan Cards: All new KCCs to farmers will be issued as smart cards cum debit cards. Further, they will be issued a smart card cum debit card at the time of renewal of existing KCC. 
• Implementing Agency: Commercial Banks, RRBs, Small Finance Banks and Cooperatives. 
• Other Features: ATM-enabled RuPay Card, one-time documentation, and built-in cost escalation in the limit. 

What are the Security Requirements under Kisan Credit Card Scheme? 

Hypothecation of crops as security is required for limits up to Rs. 1.60 lakhs and limits up to Rs. 3 lakhs (in case of tie-up). 

Mortgage of land/ or third-party guarantee in addition to hypothecated crops/assets required for limits above the specified norms. 

Who Are Eligible Borrowers under Kisan Credit Card Scheme? 

• Farmers – Individual or Joint borrowers who are owner cultivators. 
• Tenant farmers, oral lessees and sharecroppers. 
• Joint Liability Groups (JLGs) or Self-Help Groups (SHGs) of farmers, including sharecroppers, tenant farmers, etc. 

What are the Required Documents for Kisan Credit Card? 

• Duly filled and signed application form along with a passport-size photograph. 
• Aadhaar Card copy and PAN Card/ Form 60 
• Photo identity, address and signature proof 
• Land details like Khasra & Satbara extract and land valuation report 
• Declaration on availment of Crop insurance and Personal accident insurance scheme (PAIS) 
• Tie-up Agreement in case of tie-up arrangements. 
• Security or other documents (Wherever applicable) 

How to Apply for Kisan Credit Card Online?  

• Visit the Bank Website: Visit the bank website where you wish to apply for the KCC.  
• Choosing KCC Tab: Choose the Kisan Credit Card tab from the list of options available. 
• Apply Online: Click on the “Apply Online” button to open the application form on a new page.  
• Fill & Submit the Form: Fill out the application form and click the “Submit” button.  
• Track Your Application: On submitting the form, you will receive a tracker ID to track your application form. If you meet the eligibility criteria, the bank will get back to you in 3-4 days. 

What are the Recent Initiatives to Expand the KCC Scope? 

• In 2018-19, the government extended the KCC scheme to cover animal husbandry and fishery. 
• Since February 2020, the government has extended the scheme to cover all PM-KISAN beneficiaries. 
• To revolutionize digital agri lending, the NABARD will integrate its e-KCC loan origination system portal with the Public Tech Platform for Frictionless Credit (PTPFC) of the Reserve Bank Innovation Hub (RBIH). 
• In the last 10 years, Rs. 1.44 lakh Crore of Interest Subsidy has been released on Kisan Credit Card loans. It has risen nearly 2.4 times, from Rs. 6,000 Crore in 2014-15 to Rs. 14,252 crores in 2023-24.
• In Feb 2025, the government increased the loan limit under the Modified Interest Subvention Scheme from Rs. 3 lakhs to Rs. 5 lakhs.

Conclusion

The Kisan Credit Card (KCC) Scheme provides institutional credit at concessional rates to farmers for their credit requirements. The scheme has streamlined access to agricultural credit and reduced dependence on non-institutional credit in the agriculture sector. This is an important scheme for providing affordable, timely credit for various agricultural operations for farmers in India.