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Everything You Need to Know About Kisan Credit Card (KCC) Loan Scheme

Kisan Credit Card

The Kisan Credit Card (KCC) Yojana, which was initiated in 1998, offers farmers short-term loans to cover necessary needs that arise during cultivation and to maintain their farming equipment. It enables farmers to obtain loans from banks and other financial institutions at low-interest rates.

The Kisan Credit Card Yojana provides farmers in India with short-term, rapid loans to cover their emergency money needs during crop planting, harvesting, etc.

The Pradhan Mantri Kisan Credit Card Yojana is another name for the program, which is run by commercial, state cooperatives, and local rural banks. This blog will throw more light on the KCC Yojna and will help you understand its benefits in a more elaborate way. So, let’s get started with it!

Introduction: Kisan Credit Card Yojna

Farmers can get short-term loans through the Kisan Credit Card Yojana to cover their farming expenditures. The credit limit will be determined by the card-issuing banks depending on grown crops, maintenance costs, and the profit margin. For marginal farmers, a credit limit between 10,000 and 50,000 is available. Farmers can significantly benefit from the Kisan Credit Card Yojana because it successfully supports their agriculture.

The KCC plan was introduced to ensure that the credit requirements for farmers in the agricultural, fishery, and animal husbandry sectors were met. This was accomplished by assisting them in obtaining short-term loans and giving them a credit limit for equipment purchases and other expenses.

The interest rate for KCC loans starts as low as 2% and averages at 4%; thus, farmers who use it are also safe from the high-interest rates associated with the conventional loans provided by banks. With this program, farmers can pay back their loans in accordance with the crop’s harvesting season.

What is the objective and feature of the KCC Loan?

The main aim of this plan is to offer low-interest loans to farmers. Before this plan, farmers used to rely on money lenders with strict due dates and exorbitant interest rates. This caused a lot of issues for farmers, particularly when they experienced natural calamities like hailstorms, droughts, etc.

Kisan credit card loans, on the other hand, provide a lower interest rate and a flexible repayment plan. The consumer is also given access to crop insurance and collateral-free insurance. Here are the top features of the Kisan Credit Card Loan program:

  • The loan’s interest rate is as low as 2.00%.

  • No collateral is needed for loans up to Rs. 1.60 lakh.

  • The consumers are provided with crop insurance coverage for calamities.

  • The farmer is given insurance protection against death, permanent disability, and other risks.

  • The crop’s harvesting and marketing time are used to determine the repayment period.

  • The maximum loan the cardholder may obtain is Rs. 3.00 lakh.

  • Farmers will receive a high rate of interest on their deposits to the Kisan Credit Card account.

  • Farmers that pay their bills on time will only be charged a basic interest rate.

Eligibility criteria for KCC Loan

The following are the eligibility criteria for availing of the KCC loan:

  • Any individual cultivator that farms on their own.

  • Individuals who are joint debtors and belong to a group. The group must consist of owner-farmers.

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

  • Self-help groups (SHG) or joint liability groups (JLG) comprised of farmers, tenant farmers, and sharecroppers, among others.

  • Farmers engaged in agricultural cultivation or related purposes like animal husbandry, as well as non-farm pursuits like fishing.

  • The minimum age of the farmer should be 18 years, and the maximum should be 75 years.

  • In case a borrower is a senior citizen (age more than 60 years), a co-borrower is mandatory, where the co-borrower should be a legal owner.

Documents required for getting a KCC Loan

A farmer needs to keep the following documents handy for getting a KCC Loan:

  • A passport-size photograph of the applicant.

  • Duly filled-in and signed-in application form.

  • Copy of identity proof such as an Aadhaar card, PAN card, Voter ID, driving license, etc.

  • Copy of address proof documents such as an Aadhaar card, PAN card, Voter ID, and driving license. The proof should have the applicant’s current address to become valid.

  • Land documents.

  • Other documents, such as security PDC as requested by the issuing bank.

How to apply for KCC Loan?

You can apply for the KCC Loan through both online and offline modes. The steps for the same are given below:


  • Choose the bank and visit their website to apply for the Kisan credit card scheme.

  • From the listicle, choose the Kisan Credit Card.

  • After you click on the option of ‘Apply,’ you will be redirected to the application page.

  • Fill out the form with the required details and click on ‘Submit.’

  • After this process, an application reference number will be sent.

  • If the bank finds you eligible for the loan, they will get back to you for further processing within 3-4 working days.


To proceed with the offline mode, you need to visit the nearby bank of your choice where you wish to apply for the loan. The bank representative will help you with the same. If you are fit for the loan, it will be disbursed shortly.

Wrapping Up

Indeed, the Kisan Credit Card Loan is very useful for farmers who are looking for financial support without worrying about the high-interest rates. The low and affordable interest rates of the KCC loan will surely help Indian farmers meet the needs of their farming.


The interest rate is set by the bank and is based on a number of variables, including the farmer’s previous credit history, the area being farmed, the crop being grown, etc. RBI monitors the highest interest rate a bank may provide.

Yes, farmers receive insurance on Kisan credit card loans for assets and personal accidents, and the National Crop Insurance Scheme also covers the crops eligible for KCC.

You can apply for a Kisan Credit Card if you are a farmer or involved in connected activities to farming or non-farming activities.

The KCC is valid for five years. The type of activity you intend to perform with the money will determine the length of tenure you receive.

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