In India, farmers often struggle with the lack of initial capital required for agricultural activities such as buying seeds, fertilizers, arranging irrigation, and harvesting. To address this recurring problem, the Government of India launched the Kisan Credit Card (KCC) scheme. This initiative offers easy and collateral-free loans of up to ₹3 lakh at a subsidized interest rate to eligible farmers.
In this article, we will provide a complete guide on how to get a loan through the Kisan Credit Card, eligibility criteria, documents required, application steps, and other essential details you must know.
What is the Kisan Credit Card (KCC) Scheme?
The Kisan Credit Card (KCC) scheme was introduced in 1998 by the Reserve Bank of India (RBI) and NABARD (National Bank for Agriculture and Rural Development). The main objective is to provide timely credit to farmers for their agricultural and allied needs through a simple and flexible credit delivery mechanism.
Key Features:
- Provides short-term credit support for crop cultivation
- Offers up to ₹3 lakh loan without collateral
- Subsidized interest rate starting from 4%
- Flexible repayment schedule
- Includes accident insurance coverage
Eligibility Criteria for KCC Loan
To apply for the KCC scheme, a farmer must fulfill the following eligibility conditions:
- Applicant must be an Indian citizen
- Should be a farmer engaged in crop production, animal husbandry, or fisheries
- Tenant farmers, sharecroppers, and oral lessees are also eligible
- Age must be between 18 to 75 years
- For senior applicants above 60, a co-applicant is required (typically a legal heir)
Benefits of Kisan Credit Card Loan
Here are the primary benefits that make the KCC loan scheme one of the most farmer-friendly loan options:
- Collateral-free loans up to ₹1.6 lakh
- Loans up to ₹3 lakh with minimal paperwork
- Low interest rate: 4% per annum (with interest subvention)
- Quick processing with less paperwork
- Flexible repayment options
- Insurance cover for the cardholder
- Option to withdraw funds like an ATM card
Documents Required for KCC Application
Before applying, ensure you have the following documents ready:
- Duly filled application form
- Proof of identity: Aadhaar Card, Voter ID, PAN Card
- Proof of address: Ration Card, Electricity Bill
- Land ownership documents or lease agreement (if applicable)
- Passport-size photographs
- Bank account details (if applying offline)
How to Apply for a Kisan Credit Card Loan
Farmers can apply for KCC both online and offline. Here’s how:
Offline Application Process
- Visit your nearest bank branch (e.g., SBI, PNB, Bank of Baroda, etc.)
- Ask for the KCC application form and fill it completely
- Attach the required documents
- Submit the application to the branch official
- Once verified, your card will be issued within 7–10 working days
Online Application Process (via PM Kisan Portal)
- Visit the official website: https://pmkisan.gov.in
- Click on “KCC Form” under Farmer Corner
- Fill out the online application form
- Upload required documents
- Submit and take a printout for future reference
Interest Rate and Repayment Terms
- Standard interest rate is 7% per annum
- Interest subvention of 3% for prompt payers brings the effective rate to 4%
- Repayment tenure varies between 12 months to 60 months depending on crop cycle
- Option to repay after harvest, which makes it farmer-friendly
Insurance Coverage under KCC
Along with the loan, KCC also provides accidental insurance coverage:
- Coverage up to ₹5 lakh in case of accidental death or permanent disability
- Coverage of ₹1 lakh in case of partial disability
- Premium is nominal and often subsidized
Common Mistakes to Avoid
- Not updating land records before applying
- Delay in document submission
- Ignoring the due date for repayment
- Not availing of interest subvention benefits by paying late
Who Offers Kisan Credit Cards?
Major banks and financial institutions offer KCC facilities, including:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- Bank of Baroda (BOB)
- HDFC Bank
- ICICI Bank
- Regional Rural Banks (RRBs)
- Cooperative Banks
Conclusion
The Kisan Credit Card is an empowering initiative for India’s farmers. It not only addresses the financial needs of farmers in a timely manner but also helps in promoting self-sufficiency and reducing the dependency on informal sources like moneylenders.
If you’re a farmer or know someone who is, now is the time to take advantage of the KCC scheme and secure funding of up to ₹3 lakh easily. Make sure to read all eligibility guidelines and apply before the cropping season for timely benefits.
FAQs about Kisan Credit Card Loan
Q1: Can I get a loan under KCC without owning land? Yes, tenant farmers and sharecroppers are also eligible, provided they show valid lease or crop cultivation documents.
Q2: How long does it take to get a Kisan Credit Card? Once submitted, banks generally take 7–10 working days to issue the KCC.
Q3: Is KCC available for fisheries and animal husbandry? Yes, loans under KCC are available for allied activities like dairy, poultry, and fisheries as well.
Q4: Can women farmers apply for KCC? Yes, women farmers are equally eligible and encouraged to apply.
Q5: What happens if I default on repayment? Delayed repayments can lead to penalty interest and ineligibility for future interest subvention benefits.
Q6: Is there any age limit for KCC applicants? Yes, eligible age range is 18 to 75 years. Applicants above 60 need a co-applicant.
Q7: Can I use the KCC like a debit card? Yes, most banks offer a Kisan Credit Card in ATM format, which allows withdrawals like a regular debit card.