Kisan Credit Card (KCC)
The Kisan Credit Card (KCC) gives farmers short-term credit up to Rs 3 lakh at a subsidized 4% interest rate (with prompt repayment incentive) for crop production, post-harvest expenses, and allied activities like dairy and fisheries, issued by any nationalized, cooperative, or regional rural bank.
Required Documents
Step-by-Step Process
Choose a Bank and Collect KCC Form
Visit any nationalized bank, regional rural bank, or cooperative bank branch (or apply online via the bank's net banking/PM-KISAN portal link) and obtain the KCC application form.
Fill Application with Crop/Land Details
Fill in land records, crops grown, cropping pattern, and the loan limit needed based on the scale of finance fixed by the District Level Technical Committee for your crops.
Submit Documents and Undergo Verification
Submit identity, address, and land documents; the bank verifies land records and may inspect the field before assessing your credit limit.
Sanction and RuPay KCC Card Issuance
On approval, the bank sanctions the limit and issues a KCC along with a RuPay debit card for ATM/POS withdrawal of the sanctioned credit.
Repay by Due Date to Retain Interest Subsidy
Repay the withdrawn amount within 12 months (or the crop cycle) to retain the 2% interest subvention plus 3% prompt repayment incentive, effectively reducing the interest rate to 4% per annum.
Pro Tips & Warnings
- Interest is charged only on the amount you actually withdraw and for the days it remains outstanding, not on the full sanctioned limit - so idle limit costs nothing.
- Repaying on time within the due date brings the effective interest rate down to 4% per annum through the interest subvention and prompt repayment incentive.
- KCC also comes with an in-built personal accident insurance cover and can be used for allied activities like dairy, poultry, and fisheries, not just crop loans.