The Kisan Credit Card (KCC) scheme gives low-interest loans to crores of farmers across the country. The main aim of this scheme is to provide timely and easy loans for farming and related work.

Under this scheme, farmers can take loans for many purposes like short-term farming needs, post-harvest expenses, household needs, animal care, and repair work on their farms. The government gives a 2% interest subsidy and an extra 3% bonus if the farmer pays the loan on time. Because of this, the farmer gets a loan at only 4% interest per year. This makes it one of the cheapest farm loans available in India.

Let us now understand what the KCC card is, how it works, and how farmers can take full benefit from it.

What is the Kisan Credit Card Scheme?

The Kisan Credit Card (KCC) scheme started in 1998 to give easy and timely loans to farmers. With this card, farmers can buy seeds, fertilisers, and tools without taking loans at high interest rates. This card works like a debit card, so farmers can take out money from ATMs.

Today, there are more than 7.75 crore active KCC accounts in India. In 2014, loans given under this scheme were ₹4.26 lakh crore. By December 2024, it will have grown to ₹10.05 lakh crore. This shows that more farmers now trust and need the KCC.

Loan Limit and Benefits

The loan amount depends on crop type, land size, cost of farming, and use of machines. Based on this, the bank decides the loan limit. Every year, the limit can increase by 10% for five years.

In Budget 2025, Finance Minister Nirmala Sitharaman increased the loan limit from ₹3 lakh to ₹5 lakh. Loans up to ₹2 lakh do not need any security. For more than ₹2 lakh, banks may ask for collateral.

KCC has two parts:

  • Short-term loan – for crops (with interest subsidy)
  • Term loan – for things like tractors or irrigation (different rules)

This makes things easy for both farmers and banks.

How does the KCC Card Work?

This card is a digital debit card. Farmers can use it at ATMs, Bank Mitra, PoS machines, or mobile apps. It can also be linked to Aadhaar or a biometric ID. Farmers can do banking without visiting branches and buy things directly from sellers.

Who Can Apply?

  1. Farmers who own land (alone or jointly)
  2. Tenant farmers or those who take land on rent
  3. Groups like SHG (Self-Help Group) or JLG (Joint Liability Group)

How to Apply for KCC?

Online

  • Visit the bank’s website
  • Click on the Kisan Credit Card option
  • Fill in the form and submit
  • The bank will contact you in 3–4 days

Offline

  1. Visit the nearest bank branch
  2. Fill the form and submit the documents
  3. The bank will check your details and give you the card if you are eligible

Documents Needed

  1. Filled form
  2. ID and address proof (Aadhaar, DL, etc.)
  3. Passport photo
  4. Proof of land
  5. Crop pattern details
  6. For loans above ₹1.60 lakh: security papers or guarantee

Conclusion

Kisan Credit Card is a helpful scheme for farmers. It gives low-interest loans for all farming needs. The process is easy and digital. It supports small and marginal farmers and helps them become self-reliant.