The Kisan Credit Card (KCC) scheme has proved to be a boon for crores of farmers in the country. Its main objective is to provide cheap loans to farmers on time and easily for farming and related activities. Under this scheme, farmers can take loans for many purposes like periodic farming, post-harvest expenses, domestic needs, animal husbandry and farm maintenance.
The government provides 2% interest subsidy and 3% timely payment bonus in this scheme, so that the farmer gets a loan at an interest rate of only 4% per annum. This is one of the cheapest agricultural loans available in the country. So let’s know what the KCC card is, how it works, and how farmers can take advantage of it.
What is the Kisan Credit Card Scheme?
The Kisan Credit Card (KCC) Scheme was started in 1998 with the intention of providing timely loans to farmers for farming and other needs. Through this, farmers can buy seeds, fertilizers, and farming tools, so that they do not have to take loans from moneylenders at high interest rates. This card also works like a debit card, from which farmers can withdraw money from an ATM (Automated Teller Machine).
How much loan is available under KCC?
The loan amount available to the farmer under KCC depends on many things. Such as the scale of finance of the crop, the amount of land. Cost of cultivation, insurance expenses. Estimate of the maintenance of farm machines.
Big relief in Budget 2025
In Budget 2025, Finance Minister Nirmala Sitharaman has increased the maximum loan limit under the KCC scheme from ₹3 lakhs to ₹5 lakhs. Loans up to ₹2 lakh are completely collateral-free; that is, there is no need to mortgage anything for it. At the same time, for an amount above ₹2 lakhs, banks can ask for a mortgage or security as per their policy.
Where can transactions be done with the card?
With this card, farmers can do ATM, Bank Mini (BC), Mobile Banking, and Aadhaar-based Transactions. With this, farmers do not have to waste time in the bank queue, and they can buy the necessary items for their farming directly from their farm.
Who can apply for KCC?
The following categories are eligible to apply for KCC:
Landowner farmers
Sharecroppers and tenant farmers
Farmer groups
Online process to apply for KCC
Applying for KCC online has now become extremely simple:
Visit the website of the bank from which you want to get KCC.
Choose the ‘Kisan Credit Card’ option.
Click on ‘Apply’.
Fill in the required information and submit.
You will get an application number, and the bank will contact you within 3-4 days.
Offline application
For an offline application, the farmer has to visit their nearest bank branch and fill out the form. After this, the bank officials will do a thorough verification and approve the KCC card based on your eligibility.
What documents are required?
You will need some important documents while applying for KCC:
Filled application form
Identity proof
Address proof
Land documents
Crop details
Passport-size photo