What is Kisan Credit Card?
The Kisan Credit Card was introduced to give farmers timely, flexible credit through a single instrument. Instead of applying for a new loan each season, you get a sanctioned limit and a card or passbook. You withdraw as inputs are needed and repay after the harvest. Interest is usually charged only on the amount drawn, for the time it is outstanding.
KCC is not a plastic card for shopping alone. It is a credit limit tied to your land, crops and farming pattern, and it is typically valid for several years with annual review. The facility has been extended to animal husbandry and fisheries farmers for working capital. The government supports it through interest subvention schemes, which can cut the cost for farmers who repay on time.
Kisan Credit Card at a glance
| Typical loan amount | Limit set by scale of finance and land; many farmers get ₹50,000 to ₹3 lakh, with higher limits for larger holdings |
|---|---|
| Tenure | Revolving limit, usually valid for about 5 years with annual review; each draw is repaid within the crop cycle |
| Indicative interest rate | Roughly 7% a year at the base for short-term loans, with government support lowering effective cost for eligible prompt repayers |
| Processing fee | Often nil or small for limits up to a set amount, depending on the lender |
| Security / collateral | Up to ₹2 lakh without collateral; land mortgage for higher limits |
| Typical time to disbursal | Roughly 1 to 3 weeks after documents are complete |
| Loan type | Secured or unsecured |
Indicative ranges based on general market practice in India. Your offer will differ. Last reviewed 3 October 2026.
Who should consider Kisan Credit Card?
- A crop farmer who needs funds in more than one season and wants one reusable limit.
- A dairy, poultry or fishery farmer who needs working capital for feed and running costs.
- A small or marginal farmer who wants low-cost credit and can repay after harvest.
- A tenant farmer or sharecropper with proof of cultivation who wants to access institutional credit.
Kisan Credit Card eligibility criteria
| Criterion | What lenders typically look for |
|---|---|
| Farmer type | Owner-cultivators, tenants, oral lessees, sharecroppers and self-help or joint liability groups engaged in farming. |
| Age | Usually 18 to 75 years; co-borrowers are needed for older applicants. |
| Activity | Crop cultivation, animal husbandry or fisheries. |
| Land and records | Land records or lease proof showing cultivation rights. |
| Credit history | No overdue farm loans; past defaults may lower approval chances. |
| Account | A bank or cooperative account in which transactions run. |
Documents required for Kisan Credit Card
- KCC application form
- Identity proof such as Aadhaar and PAN, if applicable
- Address proof
- Land records or lease and cultivation proof
- Details of crops, acreage or livestock and fishery activity
- Passport-size photographs
- Declaration of no dues with other lenders, where required
How does Kisan Credit Card work, step by step?
- Choose a lender and apply. Apply at a bank branch, cooperative bank or through the lender's digital channel with your land and farm details.
- Limit is fixed. The lender sets a limit based on scale of finance, cropping pattern and your repayment record.
- Receive the card or passbook. You get a card or passbook to withdraw funds via branch, ATM or authorised channels.
- Draw as needed. Withdraw money for seed, fertiliser, feed or labour. Interest applies only on what you use.
- Repay after harvest. Repay each draw after selling produce. Prompt repayment keeps eligibility for interest benefits.
- Annual review. The limit is reviewed every year and the facility renewed for the validity period if your record is good.
Estimate your Kisan Credit Card EMI
Example values only. Replace them with the figures in your own offer.
Reducing-balance method. Excludes processing fees, GST, insurance and other charges.
Kisan Credit Card interest rate, fees and charges
KCC is usually a low-cost form of credit. You pay interest on the amount drawn, a small or waived processing fee, and the premium for crop insurance. Eligible farmers can receive government interest benefits on short-term loans repaid on time. Late repayment can remove those benefits and raise the effective rate, so repay before the due date.
- Interest on drawn amount
- Charged only on what you withdraw, for the days it is outstanding.
- Interest subvention
- Government schemes can reduce effective interest for eligible short-term loans repaid on time.
- Processing fee
- Often waived for small limits.
- Crop insurance
- Premium is deducted where cover is linked to the loan.
- Penal interest
- Applies if you miss the repayment date.
Indicative rates as of October 2026. Figures are market ranges, not offers, and are reviewed every 90 days (next review January 2027). Your rate is fixed by the lender in the sanction letter and Key Fact Statement.
Worked example: what this loan really costs
Illustration for a small tractor attachment and irrigation pump, using mid-range figures seen in the market as of October 2026. Your lender's Key Fact Statement will show your own numbers.
| Loan amount | ₹3,00,000 |
|---|---|
| Interest rate (reducing balance) | 9.0% a year |
| Tenure | 36 months |
| Monthly EMI | ₹9,540 |
| Total interest paid | ₹43,437 |
| Total repaid | ₹3,43,437 |
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), with r the monthly rate. Processing fees, GST and insurance are extra; the annual percentage rate in the Key Fact Statement includes them. Check the figures in our Agriculture Loans EMI calculator.
Pros and cons of Kisan Credit Card
Advantages
- Revolving limit that avoids reapplying each season
- Interest only on the amount drawn
- Government interest support for eligible prompt repayers
- Available for crops, animal husbandry and fisheries
Limitations
- Benefits depend on repaying on time
- Limit may not match your actual cost needs
- Requires land or cultivation proof
- Higher limits need collateral and added paperwork
Mistakes to avoid with Kisan Credit Card
- Letting the account turn overdue
- Delayed repayment can end interest benefits and raise your cost. Mark each due date and plan sales accordingly.
- Using the limit for non-farm spending
- KCC is meant for farming and allied needs. Misuse can lead to cancellation or loss of benefits.
- Not checking the validity and review date
- If the annual review is missed, the limit may lapse or be reduced. Keep records and update details.
- Overlooking insurance
- Without cover, a crop loss leaves you with debt and no income. Make sure crop insurance is in place.
Kisan Credit Card compared with similar loans
- Kisan Credit Card vs Crop Loan
- A crop loan is sanctioned for a single season, while KCC is a revolving limit usable across seasons and activities. Many crop loans are now provided through KCC.
- Kisan Credit Card vs Agriculture Loan
- A general agriculture loan is often for a specific purpose or asset. KCC is a standing credit line for working capital across crop and allied needs.
- Kisan Credit Card vs Dairy Farming Loan
- A dairy loan funds animals, sheds and equipment as a term loan, while KCC can supply working capital such as feed. Dairy farmers can use both for different needs.
Rules and regulations that apply to Kisan Credit Card
The Modified Interest Subvention Scheme supports short-term agricultural loans through the Kisan Credit Card, with an interest subvention to lenders and an extra incentive for prompt repayment. The 2025 Union Budget announced a rise in the KCC loan limit to ₹5 lakh. RBI directions bar collateral on agricultural loans up to ₹2 lakh. Confirm the current limit and scheme terms with your lender.
Rules that protect you, with the source
- Key Fact Statement. For retail and MSME loans sanctioned from 1 October 2024, the lender must give you a KFS with the annual percentage rate and a repayment schedule before you sign, and cannot charge a fee that is not in it. RBI circular, 15 April 2024.
- Pre-payment charges. For floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026, no pre-payment or foreclosure charge can be levied. RBI Directions, 2 July 2025.
- Free credit report. Every credit bureau must give you one free full report with score each calendar year. RBI notification, 1 September 2016.
- Complaints. If the lender does not resolve a complaint within 30 days, you can go to the RBI Ombudsman free of charge. Integrated Ombudsman Scheme, 2021 · file at cms.rbi.org.in.
Kisan Credit Card: frequently asked questions
What is a Kisan Credit Card?
It is a revolving credit limit for farmers and allied-activity farmers, allowing you to draw and repay across seasons. You get a card or passbook, interest is charged on the amount drawn, and the facility is reviewed each year. It is issued by banks and cooperative lenders.
Who is eligible for a Kisan Credit Card?
Owner-cultivators, tenant farmers, oral lessees, sharecroppers and groups engaged in crop cultivation, plus animal husbandry and fisheries farmers, can apply. Lenders check land or lease records, activity proof and repayment history. Rules can vary slightly by lender and state.
What is the KCC credit limit?
The limit depends on your land, crops and cost of cultivation, set using scale of finance. Many farmers get ₹50,000 to ₹3 lakh. The 2025 Union Budget announced raising the limit to ₹5 lakh for eligible loans, so confirm the current ceiling and how it applies to you.
What is the interest rate on KCC?
The base lending rate for short-term loans is about 7% a year, and eligible farmers can get interest subvention and a prompt repayment incentive that lowers the effective cost. Actual rates depend on current scheme rules and your repayment timing, so ask your lender to confirm.
Is collateral needed for KCC?
Not for limits up to ₹2 lakh per borrower under RBI directions. Above that, lenders may ask for land mortgage or other security. Exact requirements can differ, and approval depends on your farm and repayment record.
Can animal husbandry and fisheries farmers get KCC?
Yes. The facility has been extended to farmers in animal husbandry and fisheries for working capital needs such as feed, medicines and nets. Eligibility rules and limits can differ from crop KCC, so check with the lender for your activity.
How long is a KCC valid?
Usually about five years, with an annual review of the limit and conduct of the account. Renewal depends on timely repayment and updated details. If you miss review or repayment, the lender may reduce or withdraw the limit.
Kisan Credit Card in your city
Local guidance, documents and an EMI calculator for 1461 cities across India.
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- NABARD. The National Bank for Agriculture and Rural Development, which supports farm and rural credit.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.
This page is general information, not personalised financial advice and not an offer. Rates and terms shown are indicative and vary by lender and applicant. Verify with the lender and read the Key Fact Statement before you sign.