Kisan Credit Card Scheme: Interest Rate, Loan Amount Limit & Apply

Kisan Credit Card (KCC) Scheme is a flagship agricultural credit scheme introduced by the Government of India in 1998-99 on the recommendations of the R.V. Gupta Committee. The scheme enables eligible farmers to access timely and affordable short-term credit for crop cultivation, post-harvest expenses, allied agricultural activities, and other farm-related requirements through a single revolving credit facility. Under the Modified Interest Subvention Scheme (MISS), eligible farmers receive crop loans at a concessional interest rate of 7% per annum, which is further reduced to an effective 4% per annum on timely repayment. The crop loan limit eligible for interest subvention has been enhanced to Rs. 5 lakh. Eligible farmers can apply through participating Commercial Banks, Regional Rural Banks (RRBs), Cooperative Banks, and Small Finance Banks.

Introduction of Kisan Credit Card Scheme: A Brief Insight

Timely credit is one of the biggest requirements in farming. A delay in arranging money for seeds, fertilisers, pesticides, or irrigation can affect the entire crop season. For many years, farmers depended on local moneylenders who often charged very high interest rates because bank loans involved lengthy paperwork and slow approvals. To solve this problem and provide easy institutional credit, the Government of India introduced the Kisan Credit Card (KCC) Scheme in 1998-99. The scheme was developed by NABARD based on the recommendations of the R.V. Gupta Committee.

The scheme is implemented by the Department of Agriculture and Farmers’ Welfare, Ministry of Agriculture and Farmers’ Welfare, Government of India, through Commercial Banks, Regional Rural Banks (RRBs), Cooperative Banks, and Small Finance Banks across the country. While the Reserve Bank of India (RBI) regulates Commercial Banks, NABARD oversees Regional Rural Banks and Cooperative Banks under the scheme.

The primary objective of the Kisan Credit Card Scheme is to provide farmers with timely and affordable credit through a single, flexible credit facility. The loan can be used not only for crop cultivation but also for post-harvest expenses, farm maintenance, purchase of agricultural inputs, household consumption needs, and allied agricultural activities such as dairy farming, fisheries, animal husbandry, poultry, sericulture, and beekeeping.

Eligible farmers receive a RuPay-enabled Kisan Credit Card with a revolving credit facility that remains valid for 5 years, subject to an annual review by the lending bank. Under the Modified Interest Subvention Scheme (MISS), crop loans are available at 7% interest per annum. Farmers who repay their dues on time receive an additional 3% Prompt Repayment Incentive, reducing the effective interest rate to just 4% per annum.

To further strengthen agricultural credit, the Union Budget 2025-26 increased the crop loan limit eligible under MISS from Rs. 3 lakh to Rs. 5 lakh. The collateral-free loan limit has also been enhanced to Rs. 2 lakh with effect from 1 January 2025. In addition, eligible marginal farmers can obtain a Flexi KCC with a credit limit ranging from Rs. 10,000 to Rs. 50,000 for their short-term farming needs.

Farmers can apply by visiting the nearest participating bank branch with their Aadhaar Card, land records, and the prescribed KCC application form available at pmkisan.gov.in. Banks are required to issue the Kisan Credit Card within 14 days of receiving a complete application. As per the latest available Government data, more than 7.72 crore Kisan Credit Cards are active across India with an outstanding agricultural credit of over Rs. 10.2 lakh crore. Farmers can also access information related to interest subvention through the Kisan Rin Portal.

Farmers holding a Kisan Credit Card can also benefit from other Central Government schemes. Eligible farmers can apply for the Pradhan Mantri Kisan Samman Nidhi Yojana, which provides income support of Rs. 6,000 per year in three equal instalments. Those looking for long-term savings can explore the Kisan Vikas Patra Scheme, while small and marginal farmers aged 18 to 40 years may join the PM Kisan Mandhan Yojana to receive a monthly pension of Rs. 3,000 after attaining the age of 60 years.

If you are looking for more agriculture, rural development, and farmer welfare initiatives, explore our complete collection of List of Welfare Schemes of Central Government.

Benefits Provided to Eligible Beneficiaries

The Ministry of Agriculture and Farmers’ Welfare provides affordable and flexible institutional credit to eligible farmers under the Kisan Credit Card (KCC) Scheme. The scheme supports crop cultivation, allied agricultural activities, post-harvest requirements, and other farm-related expenses while offering concessional interest benefits to farmers who repay their loans on time.

Loan Limits (Revised under Union Budget 2025-26)

Interest Rate Benefits

Other Benefits Available Under the Scheme

• Revolving credit facility with a validity of 5 years, subject to annual review by the lending bank.
• Credit limit may increase by 10% every year from the second year onwards to account for rising cultivation costs.
• Loan can be used for crop cultivation, post-harvest expenses, storage, marketing, farm maintenance, household consumption, and eligible allied agricultural activities.
• Eligible Small and Marginal Farmers can avail interest subvention for storage of produce for up to 6 months against Negotiable Warehouse Receipts (NWRs).
• Kisan Credit Card is generally issued as a RuPay-enabled debit card that can be used at ATMs, Micro ATMs, PoS machines, and digital banking channels.
• In notified natural calamity-affected areas, banks may provide restructuring of loans and repayment relief as per RBI and Government guidelines.
• Personal Accident Insurance or other insurance facilities may be available wherever offered by the concerned bank under applicable insurance arrangements.

Scheme Coverage (Latest Available Data)

• More than 7.72 crore Kisan Credit Cards are active across India (as on 31 December 2024).
• Total outstanding agricultural credit under KCC exceeds Rs. 10.2 lakh crore.
• The scheme is implemented through 457 participating banks, including Commercial Banks, Regional Rural Banks, and Cooperative Banks.
• More than 1,998.7 lakh KCC applications have been processed under the scheme.

Eligibility Conditions Required to be Fulfilled

The Government of India has prescribed different eligibility conditions for crop farmers, allied sector farmers, and marginal farmers under the Kisan Credit Card Scheme. Eligible applicants must satisfy the conditions applicable to their category.

Crop Farmers

• Individual or joint borrowers who are owner-cultivators.
• Tenant farmers, oral lessees, and share croppers actively engaged in cultivation.
• Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) comprising eligible farmers, including tenant farmers and sharecroppers.

Farmers Engaged in Allied Activities

• Farmers involved in Dairy, Animal Husbandry, Poultry, sheep, or Goat Rearing.
• Inland and marine Fish Farmers.
• Farmers engaged in Lac cultivation, Mulberry cultivation, Sericulture, or Beekeeping.
• Dairy farmers associated with recognised Milk Cooperative Societies.

Marginal Farmers (Flexi KCC)

• Marginal farmers having land holdings up to 1 hectare may be eligible for Flexi KCC.
• The credit limit generally ranges from Rs. 10,000 to Rs. 50,000, depending on cropping pattern, cultivation expenses, post-harvest needs, and household requirements.

Who Is Not Eligible

• Applicants with unsatisfactory repayment history or loan defaults, subject to the lending bank’s assessment.
• Applicants who fail to submit the required identity, land ownership, tenancy, or activity-related documents as prescribed by the bank.

Documents Required to be Attached

Applicants should keep the following documents ready while applying for a Kisan Credit Card at any participating Commercial Bank, Regional Rural Bank, Cooperative Bank, or Small Finance Bank. The exact document requirements may vary depending on the applicant’s category and the bank’s internal guidelines.

For Crop Farmers

• Completed Kisan Credit Card application form (available at the bank branch or download from pmkisan.gov.in).
• Aadhaar Card for identity verification and e-KYC.
• Identity proof such as a Voter ID Card, a PAN Card, or a Passport.
• Valid address proof.
• Land ownership records such as Jamabandi, Khasra-Khatauni, Record of Rights (RoR), or 7/12 extract, as applicable in the State.
• Recent passport-size photograph.

For Tenant Farmers, Oral Lessees, and Share Croppers

• Aadhaar Card.
• Identity proof.
• Document or certificate supporting cultivation or tenancy, wherever accepted by the lending bank.
• Recent passport-size photograph.

For Dairy, Animal Husbandry, Fisheries, and Other Allied Activities

• Aadhaar Card.
• Identity proof.
• Address proof.
• Relevant proof of the allied activity, such as dairy cooperative membership, fisheries licence, or other supporting documents accepted by the bank.
• Recent passport-size photograph.

Depending on the loan amount and the applicant’s category, the bank may ask for additional documents or declarations. Applicants should contact their nearest participating bank branch to confirm the complete document checklist before submitting the application.

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

Farmers can apply for a Kisan Credit Card (KCC) by visiting any participating Commercial Bank, Regional Rural Bank (RRB), Cooperative Bank, or Small Finance Bank. As per RBI and Government guidelines, banks are required to issue the Kisan Credit Card within 14 days of receiving a complete application along with all required documents.

Step 1: Visit your nearest participating bank branch that offers Kisan Credit Card facilities. If you are already receiving benefits under PM Kisan Samman Nidhi Yojana, you may also approach the same bank where your PM Kisan instalments are credited, as many banks facilitate KCC applications for PM Kisan beneficiaries.

Step 2: Obtain the prescribed Kisan Credit Card application form from the bank branch or download it from the official PM Kisan portal at pmkisan.gov.in. Read the instructions carefully before filling in the form.

Step 3: Fill in all required details such as your name, address, Aadhaar number, landholding particulars, cropping pattern, crops proposed to be cultivated, estimated cultivation expenses, and details of allied activities such as dairy, fisheries, poultry, or animal husbandry, wherever applicable.

Step 4: Attach all the required supporting documents, including Aadhaar Card, identity proof, address proof, land ownership or tenancy records, passport-size photograph, and any activity-specific documents required by the bank. Applicants engaged in allied activities should also submit relevant supporting certificates or licences, wherever applicable.

Step 5: Submit the completed application form at the bank branch. The bank will verify your documents and assess your eligible credit limit based on factors such as land holding, cropping pattern, Scale of Finance prescribed by the District Level Technical Committee (DLTC), post-harvest requirements, farm maintenance expenses, and eligible allied agricultural activities.

Step 6: Complete Aadhaar seeding and e-KYC verification, as Aadhaar authentication is mandatory for availing benefits under the Modified Interest Subvention Scheme (MISS). Ensure that your Aadhaar is correctly linked with your bank account and mobile number.

Step 7: After successful verification and sanction of the credit limit, the bank issues your RuPay-enabled Kisan Credit Card. The card normally remains valid for 5 years, subject to annual review and satisfactory operation of the account.

Step 8: Once activated, you can use your Kisan Credit Card to withdraw cash through ATMs, Micro ATMs, or banking channels and make digital payments wherever permitted. Repaying the crop loan within the prescribed due date helps you receive the 3% Prompt Repayment Incentive, reducing the effective interest rate to 4% per annum.

Beneficiary Farmers can also apply for a Kisan Credit Card through their nearest CSC Centre. For the latest guidelines, application form, and scheme information, visit pmkisan.gov.in. Farmers can also access the Kisan Rin Portal for information related to the Modified Interest Subvention Scheme (MISS) and other KCC-related services.

What Can You Use the KCC Loan For?

The Kisan Credit Card is not limited to crop cultivation alone. Eligible farmers can use the sanctioned credit for a wide range of agricultural and allied activities, making it a comprehensive credit facility for farm households.

Important Links Available

• Download Official Kisan Credit Card (KCC) Application Form
• PM Kisan Samman Nidhi Portal
• Kisan Rin Portal (FasalRin)
• NABARD – Kisan Credit Card / Interest Subvention Information
• Department of Agriculture & Farmers’ Welfare
• National Government Services Portal

Contact Details in Case of Help Needed

• Ministry: Ministry of Agriculture and Farmers’ Welfare, Government of India
• Department: Department of Agriculture & Farmers’ Welfare
• NABARD: National Bank for Agriculture and Rural Development (NABARD), Bandra-Kurla Complex, Mumbai – 400051
• Phone: 022-68120017
• Email: dor@nabard.org
• Local Assistance: Visit your nearest Commercial Bank, Regional Rural Bank (RRB), Cooperative Bank, or Small Finance Bank for KCC application, credit limit assessment, renewal, and other banking services.
• Public Grievance Portal: CPGRAMS – Centralised Public Grievance Redressal and Monitoring System

Frequently Asked Questions (FAQs)

Q. What is the Kisan Credit Card (KCC) Scheme?

Ans. The Kisan Credit Card (KCC) Scheme is a Central Government initiative introduced in 1998-99 by the Ministry of Agriculture and Farmers’ Welfare based on NABARD’s recommendations. It provides farmers with a revolving credit facility to meet crop cultivation, post-harvest, allied activity, and certain household expenses at concessional interest rates. Farmers who repay their crop loans on time can avail an effective interest rate of 4% per annum under the Modified Interest Subvention Scheme (MISS).

Q. What is the maximum loan amount available under KCC?

Ans. As announced in the Union Budget 2025-26, the crop loan limit under the Modified Interest Subvention Scheme (MISS) has been enhanced to Rs. 5 lakh. The credit limit for eligible allied activities such as Dairy, Animal Husbandry, and Fisheries has also been increased to Rs. 5 lakh. Marginal farmers under Flexi KCC can obtain a flexible credit limit ranging from Rs. 10,000 to Rs. 50,000.

Q. What is the collateral-free loan limit under the Kisan Credit Card?

Ans. From 1 January 2025, farmers can avail collateral-free agricultural loans up to Rs. 2 lakh under KCC, subject to the lending bank’s guidelines and RBI directions.

Q. What interest rate is charged on KCC loans?

Ans. Banks normally provide eligible crop loans under KCC at 7% per annum. Farmers who repay the loan within the prescribed due date receive an additional 3% Prompt Repayment Incentive (PRI), reducing the effective interest rate to 4% per annum.

Q. Who can apply for a Kisan Credit Card?

Ans. Individual farmers, joint borrowers, owner cultivators, tenant farmers, oral lessees, share croppers, Self Help Groups (SHGs), Joint Liability Groups (JLGs), and farmers engaged in Dairy, Fisheries, Animal Husbandry, Sericulture, Lac cultivation, Mulberry cultivation, and Beekeeping are eligible, subject to the bank’s lending norms.

Q. Can tenant farmers and sharecroppers also get a KCC?

Ans. Yes. Tenant farmers, oral lessees, and share croppers are eligible to apply for a Kisan Credit Card. Since they may not possess land ownership records, banks may ask for suitable proof of cultivation or other documents as prescribed under applicable guidelines.

Q. What expenses can be covered through a Kisan Credit Card?

Ans. KCC can be used for crop cultivation expenses, post-harvest operations, produce marketing, farm maintenance, working capital for allied agricultural activities, certain household consumption needs, and eligible long-term agricultural investments as permitted under the scheme.

Q. How long is a Kisan Credit Card valid?

Ans. A Kisan Credit Card is generally valid for 5 years, subject to an annual review by the lending bank. The sanctioned credit limit may be enhanced periodically based on satisfactory repayment and the applicable Scale of Finance.

Q. Does KCC provide any insurance benefits?

Ans. Eligible KCC holders may receive insurance benefits as notified by the Government or the lending bank from time to time. Crop insurance is applicable as per the prevailing government guidelines wherever required. Banks may also offer optional insurance products linked with the KCC account.

Q. How can I apply for a Kisan Credit Card?

Ans. Visit your nearest Commercial Bank, Regional Rural Bank (RRB), Cooperative Bank, or Small Finance Bank with the prescribed application form and supporting documents. The application form can also be downloaded from pmkisan.gov.in. A complete application should normally be processed within 14 days.

Q. Is Aadhaar mandatory for KCC?

Ans. Aadhaar-based e-KYC is required for availing benefits under the Modified Interest Subvention Scheme (MISS). Applicants should ensure that their Aadhaar is linked with their bank account to avoid delays in processing eligible benefits.

Q. What is the Kisan Rin Portal (FasalRin)?

Ans. The Kisan Rin Portal (FasalRin) is the Government’s digital platform for monitoring the Modified Interest Subvention Scheme (MISS). It enables digital processing and tracking of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) claims submitted by participating banks.

Q. What happens to KCC loans during natural calamities?

Ans. If crops are affected by officially declared natural calamities, banks may provide relief such as restructuring or rescheduling of eligible crop loans in accordance with RBI and Government guidelines. The relief available depends on the nature and severity of the disaster and the applicable instructions issued at that time.

Q. How many Kisan Credit Cards are currently active in India?

Ans. As of 31 December 2024, more than 7.72 crore Kisan Credit Cards were active across the country, with outstanding agricultural credit of around Rs. 10.2 lakh crore. The scheme is implemented through 457 participating banks, including Commercial Banks, Regional Rural Banks, and Cooperative Banks.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.