Kisan Credit Card (KCC) Scheme: Eligibility, Credit Limit and Interest Rate
Last updated: 2026-11-13 · MockMentor
The Kisan Credit Card (KCC) gives farmers a revolving credit limit for crop cultivation, post-harvest needs, household needs and allied activities. It was introduced in 1998 on the recommendation of the R.V. Gupta Committee, with a model scheme prepared by NABARD, and was revised in 2012 under a committee chaired by T.M. Bhasin.
In one line: a single, flexible credit line that farmers draw on when they need it, at a subsidised interest rate.
At a glance
| Item | Details |
|---|---|
| Introduced | 1998 (R.V. Gupta Committee; model by NABARD) |
| Revised | 2004 (investment credit), 2012 (T.M. Bhasin; electronic KCC) |
| Lenders | Commercial banks, RRBs, small finance banks, cooperatives and PACS |
| Interest | 7% on short-term loans up to ₹5 lakh; 4% with prompt repayment |
| Validity | 5 years |
| Issue time | Within 14 days of a complete application |
Who can get a KCC
Owner cultivators, tenant farmers, oral lessees and sharecroppers, self-help groups and joint liability groups of farmers, and since the extension, farmers in fisheries, poultry, small ruminants and dairy.
Key features
- Credit limit: scale of finance × area, plus 10% for post-harvest and household needs and 20% for repairs, plus insurance; raised 10% a year for five years.
- Marginal farmers: a flexible limit of ₹10,000 to ₹50,000.
- Collateral: none up to ₹2 lakh (₹3 lakh where the bank has a tie-up arrangement; ₹5 lakh for fisheries KCC).
- Charges waived on loans up to ₹5 lakh.
- Personal accident cover of ₹50,000 for death or permanent disability.
The interest subsidy
Under the Modified Interest Subvention Scheme, short-term crop loans up to ₹5 lakh (raised from ₹3 lakh in Budget 2025-26) come at 7%, and timely repayment earns a 3% incentive, bringing the cost to 4%. Claims are filed on the Kisan Rin Portal, launched in September 2023.
Possible exam questions
- Why do many tenant farmers still lack access to KCC? Suggest solutions.
- Discuss the role of interest subvention in agricultural credit. Is it the best use of public money?
Complete notes in our courses: the Super-Elite and Elite courses carry the full KCC chapter with updates and practice MCQs. Compare the courses.
More in Agriculture schemes
- PM Dhan-Dhaanya Krishi Yojana
- Mission for Aatmanirbharta in Pulses
- PM-KISAN
- PM Kisan Maan-Dhan
- PM Fasal Bima Yojana
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