Sarkari Yojana
Kisan Credit Card
About Kisan Credit Card
The KCC Scheme was introduced to give farmers adequate, timely credit for their agricultural operations. The Government of India provides a 2% interest subvention plus a 3% Prompt Repayment Incentive, bringing the effective credit cost down to a subsidized 4% per annum. The scheme was extended in 2004 to cover farmers’ investment credit needs for allied and non-farm activities, and revisited in 2012 by a Working Group chaired by Shri T. M. Bhasin, CMD, Indian Bank, to simplify the scheme and enable Electronic Kisan Credit Cards. It lays down broad guidelines for banks to operationalize KCC, leaving implementing banks free to adapt them to institution- or location-specific needs. Objective / Purpose The Kisan Credit Card scheme aims to give farmers adequate, timely credit support through the banking system under a single window, with flexible, simplified procedures, covering:
1. Short-term credit for cultivating crops; 1. Post-harvest expenses; 1. Produce marketing loans; 1. Farmer household consumption needs; 1. Working capital for maintaining farm assets and allied agricultural activities; 1. Investment credit for agriculture and allied activities.
Type of Card
- A magnetic stripe card with PIN and an ISO IIN, giving access to all bank ATMs and micro ATMs.
- Where banks want to use UIDAI’s centralized biometric (Aadhaar) authentication infrastructure, debit cards with magnetic stripe, PIN, ISO IIN, and UIDAI biometric authentication can be issued.
- Debit cards with magnetic stripe and biometric-only authentication are also an option, depending on the bank’s customer base — useful for banks wanting to start without inter-operability, using their existing centralized biometric infrastructure, until UIDAI coverage widens.
- Banks may also issue EMV and RUPAY-compliant chip cards with magnetic stripe and PIN, carrying an ISO IIN.
- Biometric authentication and smart cards can further follow common open standards set by IDRBT and IBA, enabling seamless transactions with input dealers and crediting sales proceeds when farmers sell produce at mandis, procurement centres, etc.
Delivery Channels : These delivery channels will initially be set up so farmers can use the Kisan Credit Card effectively for their KCC account transactions:
1. Withdrawal through ATMs / Micro ATM 1. Withdrawal through BCs using smart cards. 1. PoS machine through input dealers 1. Mobile Banking with IMPS capabilities / IVR 1. Aadhaar enabled Cards
Scheme Overview
Central Government
Ministry Of Agriculture and Farmers Welfare
National Bank For Agriculture And Rural Development
Individual
01 Aug 1998
Scheme Details
Eligibility Requirements
To qualify for Kisan Credit Card, applicants must satisfy the following conditions:
Individual or joint borrowers who are farmers cultivating…
Individual or joint borrowers who are farmers cultivating their own land;
Farmers cultivating as tenants, oral lessees & share…
Farmers cultivating as tenants, oral lessees & share croppers;
Farmer Self Help Groups (SHGs) or Joint Liability…
Farmer Self Help Groups (SHGs) or Joint Liability Groups (JLGs), tenant farmers, share croppers etc included
Benefits Provided
Kisan Credit Card provides the following benefits to eligible applicants:
Fixation of credit limit/Loan amount
Fixation of credit limit/Loan amount
1
1. The short-term limit to arrive for the first year: For farmers raising a single crop in a year: Scale of finance for the crop (as decided by the District Level Technical Committee) x extent of area cultivated + 10% of the limit for post-harvest/household/consumption needs + 20% of the limit for repair and maintenance of farm assets + crop insurance, PAIS & asset insurance.1. Limit for second & subsequent year: The first-year limit for crop cultivation, as above, plus 10% for cost escalation/increase in the scale of finance each successive year (2nd through 5th), plus the estimated Term loan component for the KCC's five-year tenure.1. For farmers raising more than one crop in a year, the limit is fixed similarly, based on crops per the proposed first-year cropping pattern, plus an additional 10% for cost escalation each successive year (2nd-5th), assuming the same cropping pattern continues; if the pattern changes later, the limit may be reworked. 1. Term loans for investments toward land development, minor irrigation, farm equipment purchase, and allied agricultural activities. Banks fix the credit quantum for term and working capital limits based on the asset's unit cost, existing allied activities on the farm, and the bank's judgment of repayment capacity against the farmer's total loan burden, including existing obligations.1. The long-term loan limit is based on proposed investments over the five-year period and the bank's assessment of the farmer's repaying capacity. 1. Maximum Permissible Limit: The 5th-year short-term loan limit plus the estimated long-term loan requirement forms the Maximum Permissible Limit (MPL), treated as the Kisan Credit Card Limit.1. Fixation of Sub-limits for other than Marginal Farmers:
Short-term loans and term loans carry different…
Short-term loans and term loans carry different interest rates; short-term crop loans currently fall under the Interest Subvention Scheme/Prompt Repayment Incentive scheme, and repayment schedules differ between the two. For operational and accounting ease, the card limit is split into separate sub-limits — a short-term cash credit-cum-savings account limit, and a term loan limit. - The drawing limit for short-term cash credit is set based on the cropping pattern, letting the farmer draw amounts for crop production, farm asset repair/maintenance, and consumption at their convenience. If a district-level committee's revision to the scale of finance for any year exceeds the notional 10% hike built into the five-year limit, a revised drawable limit is set and the farmer informed; if this requires enhancing the card limit itself (in the 4th or 5th year), that's done too, with the farmer notified. For term loans, instalments can be withdrawn based on the investment's nature and a repayment schedule matched to its economic life, ensuring total liability at any point stays within that year's drawing limit. - Where the resulting card limit/liability calls for additional security, banks may take suitable collateral per their own policy.
Documents Required
Applicants should keep the following documents ready before starting the application:
The completed application form
The completed application form.
A pair of passport-size photographs
A pair of passport-size photographs.
Proof of identity, for example Driving License /…
Proof of identity, for example Driving License / Aadhaar Card / Voter Identity Card / Passport.
Proof of address, for example Driving License, Aadhaar…
Proof of address, for example Driving License, Aadhaar Card.
Landholding proof attested by the revenue authorities
Landholding proof attested by the revenue authorities.
Details of the crops grown (cropping pattern) and…
Details of the crops grown (cropping pattern) and the acreage under each.
Security documents where the loan limit exceeds Rs.1.60…
Security documents where the loan limit exceeds Rs.1.60 lakhs / Rs.3.00 lakhs, as applicable.
Any further document needed under the sanction
Any further document needed under the sanction.
1998-08-01
How to Apply
Online Application
Applicants can apply for Kisan Credit Card through the online application process outlined below.
Visit the website of the bank where you…
Visit the website of the bank where you want to apply for the Kisan Credit Card.
From the menu, select Kisan Credit Card
From the menu, select Kisan Credit Card.
Clicking 'Apply' takes you to the application page
Clicking 'Apply' takes you to the application page.
Fill in the required details and click 'Submit.'
Fill in the required details and click 'Submit.'
You'll receive an application reference number; if eligible,…
You'll receive an application reference number; if eligible, the bank contacts you within 3-4 working days for the next steps.
Offline Application
Applicants can apply for Kisan Credit Card through the offline application process outlined below.
Offline applications can be made at your chosen…
Offline applications can be made at your chosen bank's branch, or by downloading the application form from the bank's website.
Visit the branch and complete the application process…
Visit the branch and complete the application process with help from a bank representative.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.