Kisan Credit Card (KCC) scheme was launched by the Government of India in 1998-99. Farmers in India often face financial problems when purchasing seeds, fertilizers, or equipment for agricultural needs.
Kisan Credit Card helps Indian farmers with loans facility.
If you’re a farmer looking for an agriculture loan, this guide will help you on how to apply for a Kisan Credit Card,and how to get a loan from Kisan Credit Card.
What is a Kisan Credit Card (KCC)?
Kisan Credit Card is a scheme launched in 1998-99 by the RBI (Reserve Bank of India) and NABARD (National Bank for Agriculture and Rural Development). It helps Indian farmers with short-term loans at low interest rates to use for agricultural expenses.
Kisan Credit Card features
- Low interest rates (currently around 4% per annum)
- Flexible repayment tenure
- Credit limit based on agricultural land a farmer has
- Covers farming, post-harvest, and domestic spending needs
- Insurance coverage (optional under PMFBY – Pradhan Mantri Fasal Bima Yojana)
Kisan Credit Card Eligibility Criteria
Who can apply for a Kisan Credit Card:
- Farmers (Individual/Joint) – Owners or tenant farmers.
- Fishermen & Dairy Farmers – Engaged in aquaculture, animal dairy, or related activities.
- Self-Help Groups (SHGs) & Joint Liability Groups (JLGs) – Groups of small farmers can also apply.
- Land Requirement – No strict minimum land requirement; small and marginal farmers are prioritized.
How to Apply for a Kisan Credit Card?
You can apply for a KCC both online and offline. Here’s a step-by-step guide:
Offline Application Process
- 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.
Online Application Process
- 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.
Documents Required for Kisan Credit Card
- Application Form.
- Two Passport Size Photographs.
- ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport.
- Address Proof such as Driving License, Aadhar Card.
- Proof of landholding duly certified by the revenue authorities.
- Cropping pattern (Crops grown) with acreage.
- Security documents for loan limit above Rs.1.60 lakhs / Rs.3.00 lakhs, as applicable.
- Any other document as per sanction.
Benefits of Kisan Credit Card (KCC)
Low Interest Loans for farmers.
Flexible Repayment – Repay after harvest, matching crop cycles.
Cashless Transactions – Withdraw from ATMs or use at POS machines.
Crop Insurance Coverage – PMFBY.
Additional Loans – Can be used for getting loans for dairy, poultry, or fisheries business.
Acceptance – Accepted at most agricultural stores.
KCC Loan Limit & Interest Rates
Loan Amount: Basic loan up to ₹3 lakh (can vary based on landholding and crop type).
Interest Rate: 9% p.a. (but reduced to 4% with interest reduction for timely repayment).
Repayment Period: Up to 3 years
Frequently Asked Questions (FAQs)
1. Can tenant farmers apply for a Kisan Credit Card?
Yes, tenant farmers can apply with valid farm lease agreements.
2. What is the processing fee for a Kisan Credit Card?
Most banks offer Kisan Credit Card without any processing fee, but check with your bank.
3. Can I use KCC for non-agricultre expenses?
No, KCC is only to be used for agricultural & farming related purchases.
4. How long does it take to approve a Kisan Credit Card?
Kisan Credit Card gets are approved 2-4 weeks after submitting KYC documents.
5. What happens if I fail to repay on time?
The interest subsidy benefit will lapse and late payment charges may apply.
Conclusion
The Kisan Credit Card (KCC) is a good credit card for Indian farmers, avail low interest loans, flexible repayment, and insurance benefits. If you’re eligible, apply today at your nearest bank or apply online to get your Kisan Credit Card.