Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Kisan Credit Card Loan Scheme

    The PM Kisan Credit Cards have now been linked to the Pradhan Mantri Kisan Samman Nidhi Yojana. Farmers can seek a loan from KCC for up to Rs.3 lakh at 4% interest rate. Now it is also easier for PM Kisan beneficiaries to apply for KCC.

    The Kisan Credit Card scheme is a Government of India scheme which provides farmers with timely access to credit. The Kisan Credit Card (KCC) scheme was launched in 1998 with the aim of providing short-term formal credit to farmers and was created by NABARD (National Bank for Agriculture and Rural Development).

    The KCC scheme was introduced to ensure that the credit requirements for farmers in the agriculture, fisheries and animal husbandry sector were being met. This was done by helping them avail short-term loans and provide them with a credit limit to purchase equipment and for their other expenses as well.

    Moreover, with the help of KCC, farmers are exempt from the high interest rates of the regular loans offered by banks as the interest rate for KCC starts as low as 2% and averages at 4%. With the help of this scheme, farmers can repay their loans depending on the harvesting period of their crop for which the loan was given.

    Know All About Kisan Credit Card

    Features and Benefits of Kisan Credit Card

    • Farmers are given credit for meeting their financial requirements of agricultural and other allied activities along with post-harvest expenses.
    • Investment credit for agricultural requirements such as dairy animals, pump sets etc.
    • Farmers can take out a loan of up to Rs.3 lakh and also avail produce marketing loans.
    • Insurance coverage for KCC scheme holders up to Rs.50,000 in the case of permanent disability or death. A cover of Rs.25,000 is given in the case of other risks.
    • Eligible farmers will be issued a savings account with attractive interest rate along with smart card and a debit card in addition to the Kisan Credit Card.
    • Flexible repayment options and hassle-free disbursement procedure.
    • Single credit facility/ term loan for all agricultural and ancillary requirements.
    • Assistance in the purchase of fertilizers, seeds, etc. as well as in availing cash discounts from merchants/ dealers.
    • Credit is available for a period of up to 3 years and repayment can be made once the harvest season in over.
    • No collateral will be required for loans amounting up to Rs.1.60 lakh.

    Interest and Other Charges on Kisan Credit Cards

    The interest rate on the KCC differs from one bank to other along with its credit limit. However, the interest rate of KCC can be as low as 2% and averaging at 4%.

    In addition, there are certain subsidies and schemes that the government offers farmers with regard to the interest rate. These would depend on the repayment history and general credit history of the cardholder.

    Other fees and charges such as processing fees, insurance premium (if applicable), land mortgage deed charges etc. would be set at the discretion of the issuing bank.

    Eligibility Criteria for Kisan Credit Card Loan Scheme

    The eligibility criteria for the KCC scheme are as follows:

    • Any individual farmer who is an owner-cultivator.
    • People who belongs to a group and are joint borrowers. The group has to be owner-cultivators.
    • Sharecroppers, tenant farmers, or an oral lessee are eligible for the KCC.
    • Self-help groups (SHG) or joint liability groups (JLG) of sharecroppers, farmers, tenant farmers, etc.
    • Farmers involved in the production of crop or allied activities such as animal husbandry along with non-farm activities such as fishermen.

    Eligible beneficiaries under this scheme under fisheries and animal husbandry are:

    • Inland Fisheries and Aquaculture: Fish farmers, fishers, SHGs, JLGs, and women groups. As a beneficiary, you must own or lease any activity related to fisheries. This includes owning or leasing a pond, an open water body, a tank, or a hatchery among others.
    • Marine Fisheries: You own a registered boat or any other type of fishing vessel and you have the necessary license or permissions for fishing in estuaries or the sea.
    • Poultry: Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, poultry, and have sheds they have owned, rented, or leased.
    • Dairy: Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own, lease, or rent sheds.

    Documents Required to Apply for KCC Loan Scheme

    • Duly filled-in and signed-in application form.
    • Copy of identity proof such as Aadhaar card, PAN card, Voter ID, driving licence, etc.
    • Copy of address proof document such as Aadhaar card, PAN card, Voter ID, driving licence. The proof should have the applicant’s current address to become valid.
    • Land documents.
    • A passport size photograph of the applicant.
    • Other documents such as security PDC as requested by the issuing bank.

    Application Process for the Kisan Credit Card

    The application process for the Kisan credit card can be done online, as well as, offline.


    • Visit the website of the bank you wish to apply for the kisan credit card scheme.
    • From the list of options, choose the Kisan Credit Card.
    • On clicking the option of ‘Apply’, the website will redirect you to the application page.
    • Fill the form with the required details and click on ‘Submit’.
    • On doing so, an application reference number will be sent.
    • If you are eligible, the bank will get back to you for the further process within 3-4 working days.


    Offline applications can be done by visiting the branch of the bank of your choice or by downloading the application form from the website of the bank as well. The applicant can visit the branch and begin the application process with the help of the bank representative. Once the formalities are done, the bank’s loan officer can help with the loan amount for the farmer.

    PM Kisan Samman Nidhi Scheme

    The PM Kisan Samman Nidhi Scheme was launched the Indian government and under this scheme, all farmers can avail up to Rs.6,000 every year as their income support. This initiative had been curated and announced during the 2019 Interim Union Budget of India

    Post the release of the Budget 2020, the government is now making sure that institutional credit is more accessible to all farmers of our country. This is being done by bringing together the Kisan Credit Card (KCC) Scheme and the Kisan Samman Nidhi Scheme. All beneficiaries under the Kisan Samman Nidhi Scheme can now get a Kisan Credit Card.

    Government to Credit 9th Installment of PM Kisan Yojana from Next Week

    The Government of India has announced that it will start paying the 9th instalment under the PM Kisan Samman Yojana to the enrolled farmers from 9 August 2021. Under the PM Kisan Samman Nidhi scheme, the central government grants each registered farmer Rs 6000 per year to help them improve their financial situation. The Centre distributes Rs.6,000 in three Rs.2,000 instalments over the course of a year. Farmers get each instalment around four months apart. The first instalment is typically sent between 1 April and 31 July, the second instalment between 1 August and 30 November, and the third instalment between 1 December and 31 March.

    Longer Repayment Period for Kisan Credit Card (KCC) Loans

    Most of the banks in India which offer the Kisan Credit Card (KCC) loans are looking for a longer loan repayment tenure for the loans. This has been suggested as the agriculture sector is under significant pressure. The cycle of the loans provided under the Kisan Credit Card scheme has been proposed to be increased to 36 or 48 months from the 12 months. This was proposed at the state level bankers’ consultancy meet in West Bengal.

    In addition to the enhancement of the loan repayment tenure, the banks have also proposed that the farmers should be allowed to avail extra loans even after failing to repay the previous loan. However, in order to do that, they should service the interest. Public sector banks have started a 3-stage consultation process recently on the basis of the directions passed by the Department of Financial Services.

    The main focus of the consultation process would be to discuss 9 important issues. These include credit offered to MSMEs and agriculture sectors, digital banking, direct transfer of benefits, and education loans. The previous meeting was an intra-bank meet. However, this time the meeting will be an inter-bank meet at a state level.

    How to Apply for Kisan Credit Card under PM Kisan Samman Nidhi Scheme

    If you want to apply for a KCC Loan Scheme under the PM Kisan Samman Nidhi Scheme, you can follow these steps:

    • You have to fill a one-page form which is available on the website of all commercial banks.
    • You should fill in all your basic information like crop sown and land record.
    • You have to submit this form to the Common Service Centers (CSC) and they will transfer the forms to all banks.

    Top Kisan Credit Cards by Banks

    Credit Card Credit Limit Maximum Tenure
    Axis Kisan Credit Card Up to Rs.2.50 lakh (in the form of a loan against the card) Up to 1 year for cash credit Up to 7 years for term loans
    BOI Kisan Credit Card Up to 25% of the farmer’s estimated income (but not exceeding Rs.50,000) N/A
    SBI Kisan Credit Card Based on the crop cultivation and cropping pattern 5 years
    HDFC Kisan Credit Card Credit limit of up to Rs.3 lakh 5 years

    Kisan Credit Card Customer Care

    In case you have any queries or grievances regarding KCC, you can always contact the Kisan Credit Card Customer Care.

    How to Check Kisan Credit Card Balance

    You can apply for a Kisan Credit Card from any bank that is issuing KCCs and this process has now been made online. In order to check your Kisan Credit Card balance, you need to contact the customer care of the bank from where you have gotten the Kisan Credit Card. You can also log into the bank's portal and check the balance of your Kisan Credit Card via the website.

    FAQs on Kisan Credit Card Loan Scheme

    1. What is a crop loan?

      Crop loans provide farmers with necessary credit to help them meet their working capital needs. KCC is a type of crop loan that banks offer. However, the KCC loan can be used for a number of other purposes and not just to meet working capital requirements.

    2. What is the validity period of the Kisan Credit Card?

      This validity period is 5 years. The tenure you do get depends on the type of activity you plan to use the money for.

    3. What is the age requirement in order to apply for a Kisan Credit Card?

      You should me a minimum of 18 years of age and be a maximum age of 75 years. If you are a senior citizen, then it is mandatory to have a co-borrower who is a legal heir.

    4. What is the interest rate applicable on the KCC?

      The interest rate will be left to the discretion of the bank. However, according to the KCC circular dated 20 April 2012, the interest rate is 7% p.a. on short-term credit with a Rs.3 lakh upper limit on the principal amount.

    5. How does a bank determine the credit limit on a Kisan Credit Card?

      The credit limit offered on a KCC Loan Scheme for the initial year is based on:

      • The cultivation of crops according to the scale of finance and cropping pattern that was proposed.
      • Household / post-harvest consumption requirements.
      • Expenses related to the maintenance of crop insurance, farm assets, Asset insurance and Personal Accident Insurance Scheme (PAIS).
    6. Is revolving credit facility available on a Kisan Credit Card?

      Yes, revolving cash credit facility is available on these cards for an unlimited number of withdrawals and repayments made within the credit limit.

    7. How do I check my KCC account balance?

      To check the balance in your Kisan Credit Card account, you will have to contact the customer service centre of the public sector bank that has provided you with the Kisan Credit Card. Alternatively, you can visit the bank's branch to check the balance in your account.

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