Many schemes are running in India with the aim of doubling farmers’ income. Schemes like PM Kisan Samman Nidhi and Kisan Credit Card (KCC) help farmers. The Kisan Credit Card Yojana was started to protect farmers from moneylenders and provide loans at low interest rates.

Recently, surprising news has come out. The number of KCC accounts in government banks has fallen by 1.8% in FY 2025. The total number of accounts has come down to 2.25 crore. However, during the same time, the outstanding loan on these accounts has increased by 2.2% to Rs 41,300 crore. A senior government official shared this information on condition of anonymity.

According to a news report in Business Standard, the official said the decline in KCC accounts shows a change in rural lending patterns. Farmers’ incomes have improved in recent years, but many farmers are leaving agriculture. In some states, farmers now prefer input-linked credit from co-operative banks, NBFCs, or fertiliser cards. This has led to a decline in loan withdrawals from public sector banks.

Decline in KCC Accounts

Punjab National Bank MD and CEO Ashok Chandra told Business Standard that there has been a decline in new Kisan Credit Card (KCC) accounts. This is mainly because of saturation in many areas. In the last few years, the government focused a lot on this, and banks worked actively to cover as many farmers as possible. Now, most eligible farmers have already got the KCC facility.

Even now, KCC is the main source of crop loans, and many farmers meet their agricultural loan needs through it.

Loan Details and Benefits

Short-term loans are available under Kisan Credit Card. Farmers can get a total loan of up to Rs 5 lakh. Out of this, Rs 3 lakh is for crops and Rs 2 lakh is for farming-related work.

The interest rate is 7%, but the government gives 2% interest subsidy and a 3% timely payment bonus, so farmers effectively pay only 4% per year. This makes it one of the cheapest agricultural loans in India.

Who Can Get Kisan Credit Card

  • Small and marginal farmers
  • Landless agricultural laborers
  • People in animal husbandry, fisheries, silk farming, horticulture, and dairy
  • Self Help Groups (SHG) and Joint Liability Groups (JLG)

Documents Required

To apply, you need Voter ID, PAN card, or Aadhar card. These are used as ID proof and address proof.

How to Apply Online

  1. Go to the website of your bank.
  2. Click on Kisan Credit Card on the home page.
  3. Click Apply.
  4. A new page will open. Fill in your details.
  5. Click Submit.
  6. You will get an application reference number.
  7. If you are eligible, the bank will contact you within 5 days.