Farming is one of the most important jobs in India. Our country depends a lot on agriculture, and millions of farmers work every day to grow food for us. But many times, farmers face money problems. They need money to buy seeds, fertilizers, tools, or to take care of their land. Sometimes, they have to borrow money at high interest from local moneylenders. This makes life harder for them.
To solve this issue, the Government of India started the Kisan Credit Card (KCC) scheme in 1998. The main aim is to help farmers get easy loans from banks at low interest rates. This scheme gives them financial support for farming activities.
In this article, we will explain everything about the Kisan Credit Card in simple words. You will learn what it is, who can get it, how to apply, what the benefits are, and much more.
What is a Kisan Credit Card (KCC)?
A Kisan Credit Card (KCC) is a special type of credit card given to farmers. It allows them to borrow money easily from banks for their farming needs. The government started this scheme with the help of the Reserve Bank of India (RBI) and NABARD (National Bank for Agriculture and Rural Development).
With a KCC, a farmer can take a loan for:
- Buying seeds
- Buying fertilizers and pesticides
- Buying farming tools and machines
- Paying labor charges
- Managing irrigation
- Meeting other farming needs
The best part is that the interest rate on KCC loans is very low. In some cases, it can be as low as 4% per year after subsidies.
Who Can Get a Kisan Credit Card?
The KCC scheme is not just for small or big farmers. It is open to many people involved in agriculture. Here are the main people who can apply for a KCC:
- Individual farmers – including small and marginal farmers
- Tenant farmers – those who farm on land they don’t own
- Sharecroppers – those who share land and crops with the landowner
- Self-help groups (SHGs) involved in farming
- Joint Liability Groups (JLGs) of farmers
- Fishermen and dairy farmers (under the extended KCC scheme)
So, anyone who is working in agriculture or allied activities can apply for a KCC.
Features of Kisan Credit Card
The KCC scheme offers many useful features for farmers. Some of the main ones include:
1. Easy Loan Access: Farmers can take loans without too many documents. It saves time and effort.
2. Low-Interest Rates: The normal interest is about 7% per year. But the government gives a subsidy of 3%, making the effective rate just 4% if the loan is repaid on time.
3. Flexible Repayment: Farmers can repay the loan after harvesting, which means they don’t need to worry about repayment during sowing time.
4. Credit Limit: The credit limit can go up to ₹3 lakhs, depending on the farmer’s needs and land.
5. Valid for 5 Years: The KCC remains valid for up to 5 years. Farmers can renew it and increase the credit limit as needed.
6. Insurance Coverage: Some KCCs come with insurance cover against crop loss, accidental death, or disability.
7. ATM-like Card: The Kisan Credit Card looks like a debit card. It can be used to withdraw money from ATMs and bank branches.
Documents Needed for Kisan Credit Card
To apply for a KCC, the farmer must submit a few documents:
- Identity proof (like Aadhaar card, PAN card, Voter ID)
- Address proof (like ration card, electricity bill)
- Land documents (ownership or lease papers)
- Photograph (passport-sized)
- Bank account details
If applying as a group (like SHG or JLG), then group documents are also needed.
How to Apply for Kisan Credit Card
Farmers can apply for a KCC both online and offline. Here’s how:
Offline Method:
- Visit your nearest bank branch (like SBI, Bank of Baroda, Punjab National Bank, etc.)
- Ask for the Kisan Credit Card application form.
- Fill the form carefully with all the correct details.
- Attach the necessary documents.
- Submit the form to the bank officer.
- The bank will check your details and may visit your farm for verification.
- If everything is fine, the card is approved and given to you.
Online Method:
- Visit the official website of the bank or go to https://pmkisan.gov.in
- Look for the KCC section and click on “Apply Online”
- Fill in the online application form.
- Upload the required documents.
- Submit the form.
The bank will check your application and issue the card if eligible.
How Much Loan Can You Get?
The loan limit depends on various factors:
- Size of your land
- Type of crop you grow
- Cost of cultivation
- Irrigation and other inputs
Usually, banks give up to ₹3 lakhs under the KCC scheme. For dairy or fishery-related work, the limit may be different.
Subsidies and Interest Waiver
The government gives interest subsidies to support farmers:
- 2% subsidy on the normal interest rate
- 3% extra subsidy if you repay the loan on time
This means if the bank interest is 7%, and you pay on time, you only pay 4% interest. This helps farmers save money.
Banks That Offer Kisan Credit Cards
Almost all major banks in India offer the KCC facility:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of Baroda
- Canara Bank
- HDFC Bank
- ICICI Bank
- Axis Bank
- NABARD-supported rural banks
- Cooperative banks and more
You can choose a bank that is near your home or where you already have an account.
Benefits of Kisan Credit Card
Let’s understand why KCC is very helpful for farmers:
1. No Need for Middlemen: Farmers don’t need to borrow from local moneylenders who charge very high interest.
2. Timely Help: Money is available when needed, especially before sowing time.
3. Can Use for Other Farming Activities: Loan can be used for multiple farming needs from buying seeds to repairing farm tools.
4. Safe and Transparent: Loan comes from banks with proper paperwork, so everything is legal and safe.
5. Insurance Support: In case of a bad crop year or an accident, insurance can help the farmer or their family.
Challenges Faced by Farmers in Using KCC
Even though the KCC scheme is great, there are still some problems:
- Lack of awareness – Many farmers don’t know how to apply or that the scheme exists.
- Too much paperwork – Some banks still ask for too many documents.
- Delay in approval – Sometimes, the loan process takes too long.
- Language and technology barrier – Not all farmers can use online forms or understand banking terms.
The government is working on solving these problems so that more farmers can benefit.
Recent Updates in KCC Scheme
In recent years, the government has taken steps to make KCC more useful:
- Digital KCC application through the PM-Kisan portal
- KCC for animal husbandry and fisheries
- Faster loan approval process
- Linking KCC with Aadhaar and PM Kisan
This helps make the system more efficient and faster.
Conclusion
The Kisan Credit Card is a great help for Indian farmers. It gives them easy access to loans at low interest rates, which makes farming easier and more productive. With this card, farmers don’t need to depend on moneylenders. They can grow better crops, use better tools, and earn more income.
If you or someone you know is a farmer, you should try to apply for a Kisan Credit Card. It’s a smart and safe way to manage your farm expenses and grow your income.