Kisan Credit Card (KCC) Scheme

The KCC scheme was launched to provide adequate and timely credit to farmers for their agricultural operations. The Government of India provides 2% interest subvention and 3% prompt repayment incentive, making credit available at a highly subsidized rate of 4% per annum.

The scheme was further extended in 2004 to cover farmers’ investment credit needs, including allied and non-farm activities. It was reviewed again in 2012 by a working group chaired by Shri T.M. Bhasin, CMD of Indian Bank, to simplify the scheme and facilitate issuance of electronic Kisan Credit Cards. The scheme provides broad guidelines for banks to operationalize the KCC scheme. Implementing banks have the freedom to adapt it to institution/location-specific needs.

Objective / Purpose

The objective of the Kisan Credit Card scheme is to provide adequate and timely credit from the banking system to farmers for their cultivation and other needs through a flexible, simplified single-window procedure:

• To meet short-term credit needs for crop cultivation;
• Post-harvest expenses;
• Produce marketing loans;
• Consumption needs of the farmer household;
• Working capital for maintenance of farm assets and allied agricultural activities;
• Investment credit requirement for agriculture and allied activities.

Card Type

• Magnetic stripe card with PIN and ISO IIN for access at all bank ATMs and micro-ATMs.
• Debit cards with biometric authentication can be provided where banks wish to use UIDAI’s centralized biometric authentication infrastructure (Aadhaar authentication).
• Banks may issue EMV and RUPAY compliant chip cards.

Distribution Channels

The following distribution channels will initially be operationalized:

• Cash withdrawal through ATMs / Micro-ATMs
• Cash withdrawal through BCs using smart cards
• PoS machines through input dealers
• Mobile Banking / IVR with IMPS facility
• Aadhaar-enabled cards

Benefits

• Determining Credit Limit/Loan Amount: Short-term limit for the first year is determined by crop-wise scale of finance × extent of area cultivated. This includes 10% increase for post-harvest/household needs and 20% for asset maintenance.
• The limit is increased by 10% for each successive year.
• Long-term Credit Limit: Based on proposed investment over 5 years and bank’s assessment of repayment capacity.
• Maximum Permissible Limit (MPL): The short-term loan limit for the fifth year plus estimated long-term loan requirement constitutes the MPL.

Eligibility

• Farmers - Individual/Joint borrowers who are owner cultivators.
• Tenant farmers, oral lessees, and share croppers.
• SHGs or JLGs of farmers including tenant farmers, share croppers, etc.

How to Apply

Online and Offline:

1. Visit the website of the bank where you wish to apply for KCC.
2. Select ‘Kisan Credit Card’ from the list of options.
3. Clicking ‘Apply’ will take you to the application page.
4. Fill in the required information and click ‘Submit’.

After doing so, an application reference number will be sent. If you are eligible, the bank will contact you within 3-4 working days for further processing. You can also apply offline by visiting the bank branch.

Required Documents

• Application form.
• Two passport-size photographs.
• Identity proof (e.g., Driving License / Aadhaar Card / Voter ID / Passport).
• Address proof (e.g., Aadhaar Card).
• Proof of land ownership duly certified by Revenue Officers.
• Crop pattern (crops cultivated) with land area in acres.
• Security documents for loan limits above ₹1.60 lakh / ₹3.00 lakh, if applicable.