The Kisan Credit Card (KCC) gives farmers a revolving credit line for crop expenses at an effective interest rate of just 4% per year (7% base minus 3% prompt-repayment incentive) for loans up to ₹3 lakh. Dairy, poultry and fisheries farmers are also eligible — and there is no processing fee for small limits.
Key facts
| Interest | 7% up to ₹3 lakh; effectively 4% with prompt repayment |
| Collateral-free limit | Up to ₹2 lakh (as per current RBI norms) |
| Who | Farmers (owners/tenants/sharecroppers), SHG/JLG groups, dairy-poultry-fishery farmers |
| Validity | 5 years with annual renewal/enhancement |
| Includes | RuPay card for withdrawals, crop insurance linkage, consumption component |
| Apply | Any bank branch / CSC / your bank’s online KCC form |
What the KCC funds
- Seeds, fertiliser, pesticides and all crop-production expenses
- Post-harvest and produce-marketing needs
- Household consumption portion (a defined share of the limit)
- Working capital for animal husbandry and fisheries (separate sub-limit)
- Farm asset maintenance
How to apply
- Take the simplified one-page KCC form at any bank branch, CSC, or your bank’s website
- Attach Aadhaar, land records (or tenancy/cultivation proof), and passport photos
- Banks must process KCC applications within 14 days as per government advisories
- Your limit is set from your cropping pattern and scale of finance; a RuPay card is issued
- Repay after harvest and redraw for the next season — pay on time to keep the 4% effective rate
PM Kisan beneficiaries can use the special KCC saturation drive forms at banks.
Smart usage tips
- Always repay within the season/due date — the 3% incentive is the difference between 4% and 7%+
- Insist on the interest subvention being applied; check your statement
- Link PMFBY crop insurance where applicable
- Renew annually — banks can enhance limits ~10% a year for costs
Frequently asked questions
Can tenant farmers get KCC?
Yes — tenants, sharecroppers and oral lessees are eligible; JLG (joint liability group) lending covers those without land records.
Is KCC a subsidy or a loan?
A loan — but the cheapest formal credit a farmer can get. It replaces moneylender debt at 24–60% with 4% credit.
What happens on default?
You lose the subvention benefits and the account can turn NPA, blocking future credit. Talk to the bank early for restructuring in bad seasons.
Related schemes
Disclaimer: PMYojnaUpdates.com is an independent information portal, not affiliated with any government department. Always verify details on the official site myscheme.gov.in before applying.