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Kisan Credit Card (KCC)

Short-term farm credit at 4% effective interest for seeds, fertilizers and pesticides. Revolving credit - repay after harvest, draw again for the next crop.

Effective Interest Rate - How 4% Works

ComponentRateNote
Bank card rate9.00%Base rate before subvention
Interest subvention (Govt of India)−2.00%Paid to bank directly
Prompt repayment incentive (PRI)−3.00%If loan repaid on time
Effective rate for timely repayers4.00%Actual cost to farmer

The 4% rate applies only when the loan is repaid within the due date (12 months from disbursement). Late repayment attracts 9% without the incentive.

What Makes Up the KCC Credit Limit

  1. 1
    Short-term crop loans

    Scale of Finance × crop area × number of crops per year. Includes seed, fertilizer, pesticide, labour.

  2. 2
    Post-harvest expenses

    Up to 10% of the crop production limit for storage, transport and market charges.

  3. 3
    Farm maintenance

    Repair and maintenance of farm assets: pump sets, machinery, farm structures.

  4. 4
    Allied activities

    Consumption requirements and working capital for allied activities like animal husbandry and fisheries (for farmers with such activities).

  5. 5
    Term loan component

    Investment credit for land development, irrigation, farm equipment - assessed on the farmer's repayment capacity.

Documents Required

How to Apply for KCC

  1. 1
    Visit the nearest bank branch or PACS

    Approach any branch of a nationalised bank, RRB, or Primary Agricultural Credit Society (PACS) in your block. Take the original documents and self-attested copies.

  2. 2
    Submit the KCC application form

    Fill out the KCC proposal form (available at the branch or download from the bank's website). Mention crop type, area, and season.

  3. 3
    Credit appraisal by the bank

    The bank verifies land records, checks CIBIL score, and calculates the credit limit based on Scale of Finance. This typically takes 3–7 working days.

  4. 4
    Hypothecation agreement

    For limits above ₹1.6 lakh, the bank creates a simple hypothecation charge on crops. For limits above ₹3 lakh, collateral security may be required.

  5. 5
    Receive KCC and PIN

    The bank issues a RuPay KCC debit card and PIN. You can withdraw at ATMs, pay at agri-input dealers, or transfer funds online.

  6. 6
    Repay after harvest - revolving credit

    Repay the drawn amount after selling your produce. The limit is restored and you can draw again for the next crop. No need to re-apply each season for 5 years.

Banks Offering Kisan Credit Card

PM-Kisan beneficiaries are eligible for a KCC through a simplified application - the bank uses your PM-Kisan data to fast-track verification.

Subsidies, crop insurance, loans and input support — check eligibility and apply online.

District-level agromet advisories combining IMD 5-day weather forecasts with crop-specific pest, disease and irrigation recommendations.

Daily updates on mandi price movements, scheme announcements, weather advisories and crop-wise reports from state agriculture departments.

Find licensed seed, fertilizer and pesticide dealers near you.

Source: Reserve Bank of India KCC circulars, NABARD operational guidelines, and Ministry of Agriculture revised KCC scheme 2012 (as amended). Updated: reviewed with each RBI / NABARD circular update · Report an error

Frequently Asked Questions

What is the Kisan Credit Card (KCC) and who can apply?

Kisan Credit Card is a revolving credit facility offered by banks to farmers for meeting short-term crop production needs. All farmers - owner-cultivators, tenant farmers, sharecroppers and self-help groups - are eligible. There is no minimum land holding requirement.

What is the interest rate on KCC loans?

The nominal bank rate is typically 9% per annum. The Government of India provides a 2% interest subvention to banks, bringing the effective rate to 7%. Farmers who repay the crop loan on time get an additional 3% Prompt Repayment Incentive (PRI), making the effective interest rate just 4% per annum.

What is the KCC credit limit and how is it calculated?

The credit limit is calculated as: (Scale of Finance for the crop × area sown × number of cropping seasons per year) + post-harvest expenses (10%) + farm maintenance allowance. A 10% annual escalation is built in over the 5-year validity. For example, if the SoF for paddy is ₹30,000/acre and you farm 2 acres, your base crop loan component = ₹60,000.

Is PMFBY crop insurance automatic for KCC holders?

Yes. Loanee farmers with a KCC are automatically enrolled in PMFBY (Pradhan Mantri Fasal Bima Yojana) for the crop they declared in the loan application. The farmer's premium share (2% for kharif, 1.5% for rabi) is debited from the KCC account at the time of loan disbursement.

How long is KCC valid? Do I need to renew it?

A KCC is valid for 5 years. A simple annual review is done each year to update the crop area and season. After 5 years, a fresh sanction is required. The bank may ask for updated land records at the time of renewal.

What happens if I cannot repay the KCC on time?

If you cannot repay on the due date (typically 12 months from disbursement), the account attracts the full bank rate (9%) without the prompt repayment incentive. Persistent non-repayment can lead to the account being classified as a Non-Performing Asset (NPA), which affects future credit access. In case of genuine crop failure, PMFBY insurance should compensate the loss - use that to repay the KCC.