Kisan Credit Card (KCC) Scheme: Complete Guide for Indian Farmers

 

Explore the full details of the Kisan Credit Card (KCC) Scheme – loan limits, interest rates, how to apply online or offline, required documents, and exclusive benefits for dairy, poultry, and fisheries farmers.

Introduction: Empowering Indian Farmers Through Easy Credit

Access to affordable and timely credit is the backbone of Indian agriculture. The Kisan Credit Card (KCC) Scheme, launched by the Government of India in 1998, revolutionized rural lending by making short-term loans more accessible to small and marginal farmers.

Today, KCC is not limited to just crop farming—it supports dairy, poultry, fisheries, and other allied sectors, offering loans at low interest rates and with minimum paperwork.

In this blog, we’ll cover:

• What is KCC and why it matters

• Loan limits, interest rates, and repayment terms

• Step-by-step guide to apply online/offline

• List of required documents

• Sector-specific benefits for dairy, poultry, and fishery farmers

                                                                        

1. What is Kisan Credit Card (KCC) and Why It's Important?

Definition of KCC

The Kisan Credit Card is a financial product provided by banks that allows farmers to get timely credit for crop production, post-harvest expenses, working capital, and farm equipment.

Objectives of the Scheme

• Provide short-term, low-interest loans to farmers

• Reduce dependence on informal lenders and moneylenders

• Promote financial inclusion in rural India

• Extend credit to animal husbandry and fisheries sectors

Who Can Apply for KCC?

✅ Small and marginal farmers
✅ Sharecroppers and tenant farmers
✅ Self-help groups (SHGs) and joint liability groups (JLGs)
✅ Fishery, poultry, dairy, and sericulture farmers

Importance of KCC

• Acts as a financial safety net for farmers

• Enables purchase of seeds, fertilizers, and animal feed

• Allows cash withdrawals using an ATM-enabled card

• Offers insurance cover for crop damage

                                                                      

2. Loan Limits and Interest Rates Under KCC

Loan Amount Details

The loan amount depends on:

• Land area cultivated

• Cost of cultivation per hectare

• Allied activities undertaken (like dairy, fishery)

• Post-harvest and household needs

General Loan Structure

Activity TypeMaximum Limit

Crop Cultivation₹50,000 to ₹3,00,000

Dairy Farming₹1.6 lakhs (without collateral), up to ₹3 lakhs

Fisheries / Poultry₹1.5 – ₹2 lakhs

Farm Machinery₹1 lakh to ₹5 lakhs

Note: Loans up to ₹1.6 lakh are collateral-free.

Interest Rates

Loan TypeBase Interest RateEffective Rate (after subsidies)

Crop Loan (up to ₹3 lakh)9%4% with interest subvention

Animal Husbandry / Fisheries9%4% with subsidy and timely repayment

Interest Subvention Scheme

• 2% interest subvention for all crop loans up to ₹3 lakh

• Additional 3% subsidy for timely repayment = effective rate of 4%

                                                                       

3. How to Apply for a Kisan Credit Card (Online & Offline)

A. Online Application Process

Thanks to digitization, farmers can now apply for a KCC from the comfort of their home.

Step-by-Step Guide

1. Visit the PM Kisan Portal:
   https://pmkisan.gov.in

2. Click on ‘Download KCC Form’ under the 'Farmer Corner'

3. Fill in your personal and land details

4. Upload required documents

5. Submit the form to your nearest bank branch or Common Service Centre (CSC)

Alternative: Bank Websites

Banks like SBI, PNB, HDFC, and ICICI also offer online KCC application forms on their portals.

B. Offline Application Process

For those in rural areas without internet access, the traditional method is still very effective.

Steps:

1. Visit your nearest bank branch (preferably where you have an account)

2. Ask for the KCC application form

3. Fill in details regarding:

   • Land ownership

   • Crop details or dairy/poultry activities

4. Attach documents (listed below)

5. Submit and get acknowledgment receipt

Tip: Carry photocopies and originals of all documents to avoid delays.

                                                                         

 

4. Required Documents for Kisan Credit Card

Having the correct documentation is key to fast-tracking your KCC approval. Here's a comprehensive list:

Essential Documents

✅ Identity Proof (Any one)

• Aadhaar Card

• Voter ID

• PAN Card

• Passport

✅ Address Proof

• Ration Card

• Electricity Bill

• Voter ID (if address matches)

✅ Land Ownership Proof

• 7/12 extract (Maharashtra)

• Jamabandi (North India)

• Pattedar Passbook (Andhra/Telangana)

✅ Income or Activity Proof

• Crop declaration from Patwari

• Dairy/Poultry registration slip

• Fishery license if applicable

✅ Photographs

• 2–3 passport-sized photos

✅ Bank Account Details

• Passbook or copy of bank statement

                                                                            

5. Benefits of KCC for Dairy, Poultry, and Fisheries Farmers

Traditionally designed for crop loans, the KCC scheme has now been extended to cover animal husbandry and fisheries, acknowledging their critical role in India’s agri-economy.

A. KCC for Dairy Farmers

• Purchase of milch animals (cows, buffaloes)

• Investment in chillers, sheds, fodder machines

• Working capital for cattle feed, medicines, etc.

• Access to loans up to ₹1.6 lakh without collateral

B. KCC for Poultry Farmers

• Purchase of chicks, feed, and medicines

• Setting up broiler sheds and layer cages

• Capital for equipment like incubators and lighting

• Loans up to ₹2 lakh, depending on capacity

C. KCC for Fisheries

• Construction of ponds, tanks, raceways

• Purchase of fish seeds, nets, aerators

• Maintenance and operational costs

• Assistance for both inland and marine fisheries

Bonus: These sectors also enjoy interest subvention and insurance coverage under KCC.

                                                               

 

Common FAQs About Kisan Credit Card

Q1. How long is the KCC valid?
Usually for 5 years, with a credit limit enhancement based on crop pattern and repayment history.

Q2. Can I use the KCC card like an ATM card?
Yes, most banks provide an ATM-enabled Rupay KCC card for easy withdrawals and POS transactions.

Q3. Is there insurance under KCC?
Yes. KCC comes with crop insurance and accident insurance coverage, depending on the scheme and bank.

Q4. Can tenant farmers apply for KCC?
Yes, with land lease documents or group-based lending (JLGs/SHGs), tenant farmers are also eligible.

Final Thoughts: KCC is Every Farmer’s Financial Lifeline

The Kisan Credit Card Scheme is more than just a loan—it's a lifeline for millions of Indian farmers. Whether you're into traditional crop farming or exploring dairy, poultry, or fishery, the KCC ensures you’re never short of funds during critical times.

By understanding the process and using the benefits wisely, farmers can grow faster, earn more, and build resilient agri-businesses.

Quick Summary Table

TopicKey Info

Who Can ApplyAll farmers, including dairy/poultry/fishery

Loan Limit₹50,000 to ₹3 lakh (higher for some activities)

Interest Rate9%, with subsidies lowering it to 4%

Validity5 years, renewable

Application ModeOnline (PM Kisan), Offline (Bank branch)

Key BenefitTimely credit, minimal documentation, low interest

                                                                        

Suggested Reading for Farmers

• PM-KUSUM Scheme: Get Solar Pumps for Farming with Govt Subsidy

• Official PM Kisan Portal (for online KCC application)