Kisan Credit Card Scheme : Easy Access to Credit for Farmers

May 31, 2023


India is primarily an agricultural economy, and farmers are the backbone of our nation. They work tirelessly to provide us with food and nourishment, yet often face challenges in accessing financial services and credit. That’s where the Kisan Credit Card (KCC) Loan Scheme comes into play.

This scheme, introduced by the Indian government, aims to provide affordable and accessible credit to farmers. It’s a short-term credit facility that helps farmers invest in their farms, buy necessary inputs like seeds, fertilisers, and pesticides, and improve their agricultural practices. Moreover, it’s available across all Indian banks, regional rural banks, and cooperative banks, ensuring that farmers from all corners of the country can avail themselves of it.

Incredible as it may sound, as of March 2021, over 7.35 crore KCCs have been issued, with a total credit limit exceeding 6 lakh crores. This statistic is proof of how the KCC scheme has helped our farmers and the significance of this initiative.

In this blog, we’ll discuss everything there is to know about the Kisan Credit Card Loan Scheme, its benefits, and how it can help our farmers thrive. So, let’s explore the world of Kisan Credit Card Loans together!

Top 5 Banks Offering Kisan Credit Cards

The following table depicts the list of the top 5 banks that offer Kisan credit card (KCC), including attractive interest rates, repayment tenure, and maximum loan amount.

Name of the Bank KCC Loan Limit Applicable Interest Rate (per annum) Maximum Loan Tenure
Axis Bank Up to INR 2.50 lakh 8.85 percent ●     Maximum: One year in case of cash credit

●     Maximum: Seven years in case of term loans

Bank of India Up to 25 percent of the applicant’s estimated income (Note: The income should not exceed INR 50,000) 4 percent Not Applicable
State Bank of India Kisan Credit Card Up to INR 3 lakhs 2 percent (minimum) Five years
ICICI Kisan Credit Card Will be determined on the basis of the terms and conditions set by the bank in accordance with the RBI guidelines 9.7 percent to 12 percent Five years
HDFC Bank Up to INR 3 lakh 9 percent to 16.69 percent Five years

Features and Benefits of the Kisan Credit Card

The Kisan Credit Card (KCC) Scheme is a boon for farmers who need credit for their agricultural and allied activities. It offers a range of features and benefits to help farmers easily meet their financial needs.

Here is the list of benefits and features that the Kisan Credit Card (KCC) can offer to its users:

  • The investment credit allows farmers to purchase dairy animals, pump sets, and other essential equipment.
  • With KCC, farmers can take out a loan of up to INR 3 lakh, which they can use to cover their post-harvest expenses.
  • It allows farmers to avail of produce marketing loans.
  • KCC scheme holders are also eligible for insurance coverage up to INR 50,000 in case of permanent disability or death.
  • In case of other associated risks, cardholders can expect coverage of up to INR 25,000.
  • One unique feature is the savings account that only eligible farmers can access. It comes with an attractive interest rate.
  • Users receive a smart card and debit card in addition to their Kisan Credit Card to make transactions smooth and easy.
  • It offers cardholders flexible repayment options, and the disbursement procedure is hassle-free, making it easier for farmers to access credit.
  • Kisan Credit Card scheme offers a single credit facility/term loan for all agricultural and ancillary requirements. This means that farmers can avail of credit for a period of up to 3 years and repay it once the harvest season is over.
  • Cardholders get assistance in the purchase of fertilisers, seeds, etc., as well as in availing cash discounts from merchants/dealers.
  • Farmers can avail of loans without providing any collateral for loans amounting to INR 1.60 lakh. This makes it easier for small farmers to access credit and meet their financial requirements without having to worry about putting up collateral.

After going through the features mentioned earlier and benefits it is quite clear that from easy access to credit to flexible repayment options, the Kisan Credit Card Scheme. By availing of this scheme, farmers can meet their financial needs and focus on improving their agricultural practices without worrying about financial constraints.

Fee and Charges of  Kisan Credit Card

The interest rate for a Kisan Credit Card (KCC) varies from bank to bank, and the amount of credit available to the farmer. The interest rate for a KCC can be as low as 2% and typically averages around 4%. However, the government offers various subsidies and programs to farmers, which can affect the interest rate offered. These programs are based on the farmer’s credit history and repayment track record.

Aside from interest rates, the issuing bank can set other fees and charges. These may include processing fees, insurance premiums (if required), and land mortgage deed charges. It’s important to note that each bank will have its own set of rules and fees associated with the KCC.

Required Documents for Kisan Credit Card

To apply for a Kisan Credit Card, farmers need to submit certain documents verifying their identity and landholding status. These documents are necessary to determine their eligibility for the KCC. Here are some of the required documents to apply for a Kisan Credit Card:

  • Appropriately filled out the application form of the KCC.
  • Valid identity proof document (copy) including Aadhaar card, PAN card, Voter Identity Card, etc.
  • Valid residence proof (copy) including Aadhaar card, driving licence. Ensure that the submitted residence proof contains the current address.
  • Landholding document, including land registration document, lease agreement, or any other related document. It helps in the verification of land ownership.
  • Passport-sized photos.
  • Additional documents asked by the bank, such as a security PDC.

How to Apply for Kisan Credit Card Loan Scheme?

If you’re a farmer looking to apply for a Kisan Credit Card (KCC) loan scheme, online and offline options are available. You can opt for the mode which is more convenient for you:

To apply for a KCC loan scheme online, follow these simple steps:

  1. Visit the official website of the bank where you would like to apply for the KCC loan scheme.
  2. Look for the KCC loan scheme application form on the bank’s website.
  3. Fill in the required details such as personal information, land details, crop details, and expected income.
  4. Submit the application form along with any necessary documents.

To apply for a KCC loan scheme offline, follow these steps:

  1. Visit the nearest bank branch that offers the KCC loan scheme.
  2. Collect the KCC loan scheme application form from the bank.
  3. Fill in the required details such as personal information, land details, crop details, and expected income.
  4. Attach any necessary documents such as proof of identity, proof of land ownership, and income proof.
  5. Submit the completed application form and documents to the bank.

It’s important to note that the documents required may vary depending on the bank and the region you are applying to. You should check with your chosen bank beforehand to ensure you have all the necessary documentation.

Applying for a KCC loan scheme can be simple if you have all the necessary information and documents. If you have any questions or concerns, don’t hesitate to contact the bank for assistance.

PM Kisan Samman Nidhi Scheme

The PM Kisan Samman Nidhi Scheme is one of the foremost initiatives launched by the Indian government to help farmers financially. The scheme is aimed at ensuring the welfare and financial stability of farmers. It’s a relief for small and marginal farmers who own up to two hectares of land, who are eligible to receive financial assistance of INR 6,000 annually in three instalments of INR 2,000 each.

The PM Kisan Samman Nidhi Scheme has been a game-changer for many farmers across India. It has provided them with the much-needed financial support to sustain their livelihoods. More than 11 crore farmers have benefited from this scheme so far. They use the funds to meet their agricultural expenses and improve their farming practices.

To register for the scheme, farmers can do so online or offline through the designated channels. The government has also made provisions for updating the beneficiaries’ details and checking their payment status on the official website. The scheme has been widely praised for its transparency and efficient implementation, which has led to its success in supporting the farmers of India.

The best thing about the Kisan Samman Nidhi Scheme is that every beneficiary of the scheme gets access to Kisan Credit Cards. This credit card gives farmers easy access to credit and helps them with their financial needs. It’s amazing to see how this scheme has positively impacted the lives of so many farmers in India.

KCC Customer and Support

You can easily reach out to Kisan Credit Card customer care by calling the toll-free number 1800115526 or 011-24300606. These numbers are available round the clock for farmers to address their queries or concerns related to the Kisan Credit Card Loan Scheme. You can also contact the customer care of the issuing bank, which can be found on their official website or on the back of the Kisan Credit Card.

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Why was the Kisan Credit Card (KCC) scheme introduced?

The KCC scheme was introduced to help farmers access affordable credit for their agricultural and allied activities. It's a relief for farmers to not rely on high-interest moneylenders and to promote financial inclusion among farmers.

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

The bank determines the credit limit on a KCC based on factors like the farmer's landholding size, cropping pattern, and income. The bank also considers the cost of cultivation, post-harvest expenses, and other factors to determine the credit limit.

What's the minimum age requirement for applying for a Kisan Credit Card?

The minimum age requirement for applying for a KCC is 18 years, and there's no upper age limit. However, the applicant must be actively engaged in agriculture and related activities.

How long is the Kisan Credit Card valid for?

The KCC is generally valid for three years. However, if required, the bank may issue a card with a longer validity period.

Chitra is a stellar writer with over three years of experience writing about banking, financial services and insurance. She enjoys delving deeply into all the nitty-gritty of finance and associated topics that most people would rather avoid. With a master's in Computer Science, Chitra alchemises her analytical and creative prowess to manifest some of the most astounding articles for Urban Money.

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