Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Union Bank of India Kisan Credit Card

    Agriculturists and farmers can benefit immensely from the Kisan credit card offered by Union Bank of India. Union Bank of India customers can avail the Kisan Credit Card with features like post-harvest expenses, short term credit for crop cultivation, consumption requirements for every farmer’s household, produce marketing loans, working capital for farm assets and other allied activities maintenance, investment credit for allied agricultural activities like fitting sprayers, pump sets, etc. The Kisan Credit card can also be used for maintaining dairy animals, inland fishery and other conducting agriculture related activities.

    Features and Benefits of an Union Bank of India Kisan Credit Card

    All Farmers (excluding marginal farmers):

    During the first year, all kinds of farmers (excluding marginal farmers) cultivating a single crop for a year can get a credit limit as per the following calculation -

    (Quantum of finance x cultivated area) + 10% of the post-harvest, consumption, household requirement limit + 20% of the farm asset maintenance and repair limit + Personal Accident Insurance scheme, crop insurance and asset insurance.

    For the remaining years, the limit will be calculated as the first year limit along with 10% of the cost escalation or increase in quantum of finance limit. This is calculated for every succeeding year along with the projected term loan for the entire Kisan credit card tenure.

    If the quantum of finance decided by the DLTC is more than the 10% hike, then the bank can revise the drawable limit and inform the concerned farmer about the changes.

    Kisan Credit Cards By Top Banks

    Kisan Credit Card

    SBI Kisan Credit Card

    HDFC Kisan Credit Card

    Axis Bank Kisan Credit Card

    IDBI Kisan Credit Card

    Kotak Kisan Credit Card

    PNB Kisan Credit Card

    Canara Bank Kisan Credit Card

    Bank of Baroda Kisan Credit Card

    Bank of India Kisan Credit Card

    Indian Bank Rupay Kisan Credit Card

    Andhra Bank Kisan Credit Card

    Term loans Investments:

    Farmers will also be given term loans for minor irrigation requirements, land development, allied agricultural activities and for buying farm equipment. The quantum of the term loan and working capital provided for agricultural activities is calculated depending on the unit cost of the asset, which has to be got by the farmer, the allied agricultural activities being done on the farm and also based on the repayment capability and the other liabilities held by the farmer. The limit for the long term loan is determined depending on the investments to be done for the five-year tenure and the repaying capability of the farmer.

    Maximum Permissible Limit (MPL):

    The Maximum Permissible Limit will be a total of the short term limit for the fifth year and the calculated long term loan amount. This will considered by the bank as the Kisan Credit Card limit.


    The Union Bank of India Kisan credit card limit is further divided into sub limits for term loans and short term cash credit limit with savings accounts. This is done owing to the difference in repayment schedules, norms and interest rates.

    For marginal farmers:

    Farmers can get flexible limits on their Kisan credit cards ranging from Rs. 10, 000 to Rs. 50, 000, depending on the crops cultivated, land held, post-harvest storage and warehouse requirements, consumption needs, extra expenses on the farm, smalls term loan investments, buying farm equipment, constructing backyard poultry and mini-diary. The flexible limit will be approved according to the Branch Manager’s assessments without taking the land value into account. After this, the combined Kisan credit card limit will be determined for the five year tenure.


    The short term loan section of the Kisan credit card carries the revolving cash credit feature. Union Bank does not impose any limit on the number of credits or debits. The limit that can be drawn by farmers for the current year can be taken through any of the mentioned channels - through a branch, withdrawals at Kisan credit card enabled ATMs, cheques, via business correspondents, input dealers, via PoS at Contract farming companies and sugar mills, mobile transactions at mandies and agricultural input dealers. Union Bank of India will also issue an ATM RuPay card to certain eligible farmers.

    Interest Rate:

    The rate of interest given for a Union Bank of India Kisan credit card will be linked to the base rate of the bank. The interest rate can also vary based on any subsidy given by the Central Government for any component of the term loan.

    Repayment Period:

    For the term loan the repayment period is determined according to the expected marketing and harvesting period of the crops. Generally, term loans taken by farmers through Kisan credit cards have to be repaid within a tenure of five years, based on the type of agricultural activity or investment done.

    Loan Margin:

    No separate margin is given for crop loans taken under the Kisan credit card. The term loan will carry a loan margin of 0% for loan amounts up to Rs. 1 lakh and 15% for loan amounts above Rs. 1 lakh.

    Security Collateral:

    For term loans taken up to an amount of Rs. 1 lakh, the hypothecation of the crops is required. Along with this, land mortgage and/or a third party guarantee might also be asked. If the bank is located in a state where there is a facility to create charge on land records online, then the borrower can use this as security for the loan.

    An interest rate subsidy will also be given to farmers to help them repay back without any hassles and as per regulations.

    Union Bank of India Kisan credit card holders can also enjoy the benefit of getting compulsory crop insurance, personal accident insurance, health insurance and asset insurance.

    Processing fees is not charged for up to a Kisan credit card limit of Rs. 3 lakhs.

    Farmers holding Kisan credit card short term sub-limit with savings accounts can be permitted to have credit balance in the Kisan credit card-savings account, getting the holder an interest rate just as the SB interest rate.

    Eligibility Criteria

    • Farmers are eligible to avail a Union Bank of India Kisan Credit Card either as a single applicant or as joint applicants. The co-borrowers can be other owners and cultivators.
    • Oral Lessees, tenant farmers and share croppers are also eligible to take a Union Bank of India Kisan Credit Card.
    • JLGs and SHGs of farmers inclusive of share croppers, tenant farmers, etc., can also qualify for a Union Bank of India Kisan Credit Card.

    Documentation Required for Union Bank of India KCC

    The scale of finance can be fixed for the first year and can be increased every year. The required documentation will be recorded by the bank only for the maximum loan limit so that there is no documentation required during the validity period of the account. A Kisan credit card is valid for five years and card holders might be legally required to submit a letter to renew their account, before three years of expiry.

    Other Agricultural Banking products offered by Union Bank of India

    Short term Credit:

    • Crop Loan
    • Union Gold Loan
    • Loan-Warehouse Receipt for farmers
    • Loan-Warehouse Receipt for traders

    Long term Credit:

    • Minor Irrigation
    • Land Reclamation Development
    • Land Purchase
    • Farm Mechanization
    • Bio gas
    • Union Mortgage for Farmers
    • Construction of Cold Storage
    • Purchase of 2, 3, 4 wheelers
    • Sericulture
    • Bhumiheen Green Card
    • Union White card
    • Allied activities
    • Agri Clinics / Busn.Centres
    • Purchase of Land for Agricultural
    • Estate Purchase Loan
    • Kisan All Purpose Term Loan
    • Kisan Tatkal Scheme
    • Energy Scheme

    Other Credit Products:

    • UGCC
    • Joint Liability Groups
    • Self Help Groups
    • Cluster Schemes

    FAQs on Union Bank of India Kisan Credit Cards

    1. Can farmers apply for a Kisan credit card online using the Union Bank of India website?

      Yes, customers will be able to apply for a Union Bank Kisan credit card on the bank's website using "Online Loan application".

    2. Can Kisan credit card holders get insurance cover when they avail the card?

      Yes, along with the credit card users can also get health insurance, personal accident insurance and asset insurance along with crop insurance.

    3. Does Union Bank of India fix a maximum limit on the loan amount?

      Yes, Union Bank does fix a limit on the term loan, depending on the applicant's financial situation and requirement.

    4. Under the mandatory crop insurance that is provided, what are the types of crops that will be insured?

      The Crop insurance covers all types of crops cultivated, regardless of the type.

    5. Can I check the status of my Kisan credit card application online?

      Yes, applicants will be able to easily check the status of their Kisan credit card applications online on the Union Bank of India website.

    6. Is there a processing fee charged on the Kisan Credit Cards?

      A processing fee is applicable on the Kisan Credit Cards only for card limits which exceed the mark of Rs.3 lakh.

    7. Is there a requirement of margin for crop loans?

      No, crop loans do not need a margin.

    8. Is there a requirement of margin for term loans?

      Yes, there is a requirement of margin for term loans. If the loan amount is less than Rs.1 lakh, no margin will be required. However, for a loan amount of more than Rs.1 lakh, the margin is 15%.

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