Kisan Credit Card (KCC): Benefits, Interest Rate & How to Apply
The Kisan Credit Card (KCC) gives farmers short-term credit for crops at a heavily subsidised interest rate — as low as about 4% a year if you repay on time. It is one of the cheapest loans available to a farmer, and most landholders qualify. Here is how it works and how to get one.
What you get
- A revolving credit limit based on your crop, area and the local scale of finance — draw and repay as you need.
- Interest of 7% per year, reduced to an effective ~4% with the interest subvention and prompt-repayment incentive if you repay on time.
- Collateral-free lending up to the limit set by RBI (raised over the years), and cover for post-harvest and allied needs (dairy, fisheries) too.
Who is eligible
Owner-cultivators, tenant farmers, sharecroppers and self-help / joint-liability groups. If you grow crops or run allied activities like dairy or fishery, you can usually apply.
Documents you need
- Identity + address proof (Aadhaar, voter ID, etc.).
- Land records / proof of cultivation.
- Passport-size photos and, for existing borrowers, past loan details.
How to apply
- Visit your bank (any commercial bank, cooperative bank or RRB) or apply through the bank’s website / the PM-KISAN portal’s KCC link.
- Fill the simple one-page KCC form and attach the documents above.
- The bank assesses your credit limit from the scale of finance for your crop and area and issues the card, usually within a couple of weeks.
Tip: repay before the due date each season to keep the ~4% rate — a late repayment loses the subvention and the rate jumps.
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What is the interest rate on a Kisan Credit Card?
The base rate is about 7% per year, but with the government interest subvention and a prompt-repayment incentive it drops to an effective ~4% if you repay on time.
Is a Kisan Credit Card loan collateral-free?
Yes, up to the collateral-free limit set by the RBI (which has been raised over the years). Larger limits may need security.
Who can apply for a KCC?
Owner-cultivators, tenant farmers, sharecroppers and self-help/joint-liability groups, including those in allied activities like dairy and fishery.