Kisan Credit Card- Big news for Indian Farmers. Kisan Credit Card (KCC) scheme is considered to be the cheapest and easiest loan scheme for farmers in the country. The main objective of this scheme is to provide timely loans for agriculture and related activities.

Through this, farmers can take loans for various purposes such as short-term farming expenses, post-harvest needs, household expenses, animal husbandry, maintenance and repair of farm machinery. The government provides 2% interest subsidy and 3% timely repayment bonus under this scheme, so eligible farmers get loans at just 4% interest per annum. This is one of the lowest interest agricultural loans in the country.

The KCC scheme, launched in 1998, is implemented with the aim of providing cheap loans to farmers to purchase seeds, fertilizers, and agricultural implements. This card works like a debit card and allows direct withdrawal or purchase from ATMs, Bank Mitra, or POS machines of vendors.

Loan limits and terms

The loan limit under KCC depends on the type of crop, land area, cultivation cost, insurance premium and maintenance of farm machinery. The loan limit for the next five years is fixed by assuming a natural increase of 10% every year on the initially fixed limit. In the Budget 2025, the maximum loan limit has been increased from Rs 3 lakh to Rs 5 lakh. Loans up to Rs 2 lakh are completely collateral-free. For loans above that amount, the bank can ask for collateral.

How many types of loans are there?

Loans are mainly divided into two parts, namely.
Short-term loan: For seasonal crop expenses.
Term Loan: For long-term investments like tractors, irrigation equipment.
This division is convenient for the bank’s accounting process and also helps farmers in planning.

What is the application process like?

Online application

First of all, go to the website of your respective bank. There, select the Kisan Credit Card option and click on ‘Apply’. Fill in your required information and submit.
The bank will contact you within 3-4 days after receiving the application number.

Offline application

Go to the nearest bank branch and fill the form. Submit the required documents. After verification, the card is approved as per the eligibility.

What are the required documents?

Completed application form
Identity card and address proof (Aadhaar, driving license, etc.)
Passport size photo
Proof of land ownership
Cropping system information

Meanwhile, the KCC scheme has become an important tool for financial security for farmers. Digital connectivity has made the process more transparent and faster. With low interest rates, easy terms and availability for various uses, this scheme paves the way for self-reliance even for small and marginal farmers.