Kisan Credit Card (KCC)

What is it?

The Kisan Credit Card is a way for farmers to borrow from a bank for farming needs without arranging a fresh loan every season. The bank fixes a credit limit and the farmer draws money from it as needed, for seed, fertiliser, labour, post-harvest costs, marketing expenses and household needs.

The card is not only for crop growers. According to the official material, it also covers people in animal husbandry, dairy, and fisheries and fish farming, so that they too can get working capital at the same concessional terms.

On interest: short-term agricultural loans of up to Rs 3 lakh are given at a base rate of 7% per year under the Modified Interest Subvention Scheme, with a 3% Prompt Repayment Incentive for farmers who repay on time, which brings the effective rate down to 4% per year. From 2025-26 the loan limit covered under the interest subvention has been raised from Rs 3 lakh to Rs 5 lakh, and the limit for fisheries and allied activities has been raised from Rs 2 lakh to Rs 5 lakh.

Collateral is a common worry. The published position is that collateral-free agricultural credit is available up to Rs 2 lakh per borrower, effective 1 January 2025. For marginal farmers, a flexible limit of Rs 10,000 to Rs 50,000 is provided for.

Applying has been simplified to a one-page form, and details already held under PM-KISAN can be pre-filled. Applications can be made at a bank branch or digitally through bank websites, the PM-KISAN portal or a Common Service Centre.

Potential benefit

Up to ₹5,00,000 loan limit covered by interest subvention

The benefit is a running bank credit limit for farming and allied activities. Short-term agri loans up to Rs 3 lakh carry a 7% base rate with a 3% Prompt Repayment Incentive for timely repayment, giving an effective rate of 4% per year. The loan limit covered under the Modified Interest Subvention Scheme has been enhanced to Rs 5 lakh, and to Rs 5 lakh for fisheries and allied activities. Collateral-free credit is available up to Rs 2 lakh per borrower with effect from 1 January 2025.

Who can apply?

Other conditions stated by the government

• Open to individual farmers who are owner-cultivators, and to joint borrowers.
• Open to tenant farmers, oral lessees and sharecroppers.
• Open to Self Help Groups and Joint Liability Groups of farmers.
• Extended to fishers and fish farmers, and to people engaged in animal husbandry.
• Marginal farmers are provided for through a flexible limit of Rs 10,000 to Rs 50,000.

Eligibility information is provided for informational purposes only. Final eligibility and approval are determined by the relevant government authority.

How to apply

A simplified one-page application form is used, and details held under PM-KISAN can be pre-filled. The form can be submitted at a bank branch, or digitally through bank websites, the Department of Agriculture portal, the PM-KISAN portal, or a Common Service Centre. Loans and the Prompt Repayment Incentive are processed through the Kisan Rin Portal.

Where to apply: bank, online and csc

Deadline

No fixed deadline. Applications are accepted on a rolling basis.