Kisan Credit Card: What is it and how farmers can apply?

Kisan Credit Card is a scheme launched by the Central Government of India which allows the farmers to take loans at affordable interest rates and to save the farmers from the exploitation by the moneylenders in the unorganised sector.
Updated: Oct 22, 2020 11:22 IST
Kisan Credit Card
Kisan Credit Card

Under the Atmanirbhar Bharat package, the government has announced to cover 2.5 crore farmers under the Kisan Credit Card (KCC) Scheme. A credit boost of Rs. 2 lakh crore will be provided by the government via a special saturation drive. 

On May 14, Finance Minister Nirmala Sitharaman announced Rs 2 lakh crore concessional credit boost to 2.5 crores farmers of India through Kisan Credit Cards. The concessional boost also covers Fisherman and Animal Husbandary farmers. This package will enable the farmers to gain access to institutional credit at an affordable interest rate. 

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What is Kisan Credit Card?

Kisan Credit Card is a scheme launched by the Central Government of India which allows the farmers to take loans at affordable interest rates. Also, this scheme will save the farmers from the exploitation by the moneylenders in the unorganised sector. The interest rates are very low and a longer repayment period is provided to the beneficiaries. Another feature of this scheme is the crop insurance awarded to the farmers. 

What are the objectives of the KCC?

1- Post-harvest expenses
2- Produce a marketing loan
3- Consumption requirements of farmer household
4- Capital for maintenance of farm assets
5- Investment credit requirement for farm-related activities

Why Kisan Credit Card (KCC) is a boon to the farmers?

1- It allows 'n' number of withdrawals and repayments within the set limit. 

2- Limit of the KCC is based on the land holding, cropping pattern and scale of finance. 

3- It also provides credit needs for the production of crops for the full year.

4- Card is valid up to 5 years. 

5- The card provides insurance cover against death or permanent disability resulting from accidents. 

6- The cardholders can also avail the national crop insurance scheme for certain crops. 

What is KCC saturation campaign?

1- In August 2019, the Department of Agriculture, Cooperation and Farmers Welfare started a saturation campaign for giving KCC loans to farmers who have not received such loans. 

2- It also added the farmers who are engaged in allied farming activities (animal husbandry and fisheries). 

3- Under Kisan Credit Card (KCC) no processing fee will be charged for loans. 

4- Under this campaign, the collateral-free agriculture loan limit has been raised from Rs. 1 lakh to Rs. 1.6 lakh.  

Kisan Credit Card: Eligibility Criteria

1- All those people associated with farming and agriculture are eligible under this scheme. 

2- The age of the applicants must be between 18 years to 75 years. 

3- Applicants above the age of 60 years must have a co-applicant. 

Kisan Credit Card: Steps to apply

1- Visit the official website of your preferred bank offering the scheme-- SBI, Axis Bank, HDFC, etc. 

2- On the home page, look for 'Apply for KCC' option and click on it.

3- The form will be available in two languages-- English and Hindi. 

4- Enter the credentials as asked. 

5- Click on the 'Submit' button.

6- After successfully submitting the form, you will be provided with a reference number. 

7- Save this reference number for future use. 

Kisan Credit Card: Documents required

1- A copy of any one of the identity proof-- PAN Card, Aadhaar Card, Voter ID, Driving License.

2- A copy of any one of the address proof-- Aadhaar Card, Voter ID, Driving License.

3- Documents of land. 

4- Applicant's passport size photographs (2 photos). 

5- Any other documents as asked by the banks.

Kisan Credit Card: Benefits

1- Beneficiaries are provided with the flexible loan repayment options.

2- Loan distribution process is hassle-free.

3- For all the agricultural-related loans, KCC is the best option.

4- The credit available under the Kisan Credit Card scheme is up to 3 years.

5- Minimum documents are required and maximum flexibility is provided. 

6- The loan can be taken from any of the branch of your chosen bank (at the time of filing the application). 


The scheme was introduced in the year 1998 to provide sufficient and timely credit to the farmers for their agricultural needs. The scheme was prepared on the recommendation of the R.V. Gupta Committee by the National Bank for Agriculture and Rural Development (NABARD). 

Different banks provide different benefits to the Kisan Credit Card Scheme. All cardholders will be able to make purchases against the credit limit of their Kisan Credit Card and the government will charge affordable interest only on the amount of credit taken by the beneficiaries. 

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