How to get loan from Kisan Credit Card?
How to get loan from Kisan Credit Card?

The Kisan Credit Card (KCC) is an innovative initiative by the Government of India to support farmers by providing timely access to credit. Introduced in 1998, the KCC aims to meet the financial needs of farmers for crop production, post-harvest expenses, and other agricultural activities.

Why Do Farmers Need Kisan Credit Cards?

Farmers face numerous financial challenges, from buying seeds and fertilizers to managing irrigation and labor costs. The KCC offers a convenient and affordable credit line, enabling farmers to meet these expenses without resorting to high-interest informal loans.

Eligibility Criteria for Kisan Credit Card

Who Can Apply for a Kisan Credit Card?

To apply for a Kisan Credit Card, you need to meet specific criteria:

  • Farmers: Individual farmers, joint borrowers who are owner cultivators, tenant farmers, and sharecroppers.
  • Self-Help Groups (SHGs): Engaged in farming.
  • Joint Liability Groups (JLGs): Farmers organized into groups for joint liability.

Basic Requirements for KCC Application

  • Land Ownership Documents: Proof of ownership or lease agreement.
  • Agricultural Activity Proof: Evidence of farming activity.
  • Identity Proof: Aadhar card, PAN card, or Voter ID.
  • Address Proof: Utility bills, ration card, or any other valid proof.

Application Process for Kisan Credit Card

Step-by-Step Guide to Applying for KCC

Step 1: Gather Necessary Documents

Before applying, ensure you have all required documents:

  • Identity and Address Proof: Aadhar, PAN, Voter ID, etc.
  • Land Ownership Documents: Title deed, lease agreement, etc.
  • Income Proof: Previous bank statements, income certificate, etc.

Step 2: Visit the Nearest Bank Branch

Choose a bank that offers the Kisan Credit Card scheme. Public sector banks like SBI, PNB, and private banks such as HDFC and ICICI provide KCC services.

Step 3: Fill Out the Application Form

Collect the KCC application form from the bank or download it from the bank’s website. Fill in all the details accurately.

Step 4: Submit the Application

Submit the filled application form along with the necessary documents to the bank. Ensure all information is accurate to avoid delays.

Step 5: Verification and Approval

The bank will verify your documents and farming activity. Once verified, the bank will approve your KCC and set a credit limit based on your needs and repayment capacity.

Features and Benefits of Kisan Credit Card

Flexible Credit Limits

The KCC offers a flexible credit limit based on your farming needs and repayment capacity, ensuring you have adequate funds when needed.

Low-Interest Rates

KCC loans come with subsidized interest rates, significantly lower than those offered by traditional loans. This reduces the financial burden on farmers.

Repayment Flexibility

Farmers can repay the KCC loan based on their crop cycle, with options for short-term and long-term repayments.

Insurance Coverage

KCC holders get crop insurance coverage, protecting them against crop loss due to natural calamities, pests, and diseases.

Using the Kisan Credit Card

How to Utilize the KCC Effectively

For Crop Production

Use the KCC for buying seeds, fertilizers, pesticides, and other inputs essential for crop production.

Post-Harvest Expenses

Manage post-harvest expenses like storage, transportation, and marketing of produce using the KCC.

Farm Machinery and Equipment

Finance the purchase or repair of farm machinery and equipment through the KCC.

Managing Your KCC Loan

Keep Track of Expenses

Maintain a record of all expenses made using the KCC to ensure proper management and timely repayments.

Repay on Time

Timely repayment of the KCC loan is crucial to avoid penalties and maintain a good credit score.

Advantages of Kisan Credit Card Over Traditional Loans


KCC provides a hassle-free and straightforward process for obtaining credit compared to traditional loans that require extensive documentation and have lengthy approval processes.


With subsidized interest rates and flexible repayment options, KCC loans are more affordable for farmers than traditional loans.


The widespread availability of KCC through various banks makes it easily accessible to farmers across the country.

Government Initiatives and Kisan Credit Card

Pradhan Mantri Fasal Bima Yojana (PMFBY)

This crop insurance scheme is linked with KCC, providing insurance coverage to crops financed under the KCC scheme.

Interest Subvention Scheme

Under this scheme, the government offers interest subsidies to KCC holders, reducing the effective interest rate on their loans.

Challenges Faced by Farmers in Accessing KCC

Lack of Awareness

Many farmers are unaware of the benefits and procedures for obtaining a Kisan Credit Card, leading to underutilization of the scheme.

Documentation Hurdles

The requirement for extensive documentation can be a barrier for small and marginal farmers who may not have all the necessary papers.

Banking Infrastructure

Inadequate banking infrastructure in rural areas can limit access to KCC services for farmers in remote locations.

Tips for a Successful KCC Application

Ensure Complete Documentation

Before applying, ensure you have all the required documents to avoid delays and rejections.

Maintain a Good Credit Score

A good credit score increases your chances of approval and may lead to better credit terms.

Seek Assistance

If unsure about the application process, seek help from local agricultural offices or banks to guide you through the process.

Frequently Asked Questions (FAQs) About Kisan Credit Card

What is the Maximum Credit Limit for KCC?

The credit limit varies based on the farmer’s requirements, crop type, and repayment capacity, typically ranging from INR 10,000 to INR 3 lakhs.

Can KCC be Used for Non-Agricultural Purposes?

No, the KCC is specifically designed for agricultural and allied activities. Using it for non-agricultural purposes can result in penalties.

How Long Does it Take to Get a KCC Approved?

The approval time varies by bank but generally takes between one to two weeks after submission of a complete application.

What Happens If I Default on a KCC Loan?

Defaulting on a KCC loan can lead to penalties, a negative impact on your credit score, and legal action by the bank. The Kisan Credit Card is a powerful tool that empowers farmers by providing them with timely and affordable credit. Understanding the application process, benefits, and effective use of the KCC can significantly enhance a farmer's financial stability and productivity. By leveraging the KCC, farmers can focus more on farming activities and less on financial worries.

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