Kisan Credit Card Scheme: A Detailed Guide
- Dipali Waghmode
- Dec 16, 2025
- 8 min read
Introduction
India is an agro-based nation where the agricultural industry provides the majority of the nation's income. Farmers are regarded as the foundation of the Indian economy. Farmers require money for agricultural activities, but they seldom have it. The farming process might be hampered by a lack of funds, which affects the produce. In order to combat this, the NDA-led government introduced the Kisan credit card program in 1998 to assist farmers. The Kisan credit card was created by the government to help farmers with all of their financial needs.
Table of Contents
What is the Kisan Credit Card Scheme?
In 1998, the Kisan Financing Card Scheme was established to give farmers financing for their production needs and agricultural inputs. Farmers are given Kisan Credit Cards (KCC) under this program based on their land holdings and crop farming. Farmers can easily buy agricultural inputs, including fertilisers, seeds, insecticides, and more, with the KCC. They can also take out cash for their necessities. Private Sector Scheduled Commercial Banks, Public Sector Banks, Small Finance Banks, Primary Agricultural Credit Society (PACS) affiliated with Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), and Rural Cooperative Banks are the entities that issue KCCs.
Investment credit and related activities were added to this program in 2004. Starting in 2006–07, the Interest Subvention Scheme (ISS) provided KCC loans with an interest rate of 7%. The Modified Interest Subvention Scheme (MISS) version, which offers 7% interest for short-term agricultural loans up to Rs. 5 lakh through KCC, was revealed in the Budget 2025–2026. Fisheries, dairy, and animal husbandry are all covered under MISS.
Types of Kisan Credit Cards
The banks can provide farmers with the following kinds of Kisan Credit Cards:
Farmers can access all bank ATMs and micro ATMs with the Kisan Credit Card, a magnetic stripe card with a PIN (Personal Identification Number) and an ISO IIN (International Standards Organisation International Identification Number).
Banks can offer debit cards with magnetic stripes, PINs, and ISO IINs with UIDAI biometric authentication if they wish to use the centralised UIDAI biometric authentication infrastructure.
Depending on the bank's clientele, KCC debit cards with magnetic strips and solely biometric identification may be offered.
Additionally, banks can issue RUPAY-compliant chip cards with magnetic stripes, PINs, and ISO IINs, as well as EMV (Europay, MasterCard, and VISA), which is a global standard for integrated circuit card interoperability.
Smart cards and biometric authentication adhere to the shared open standards set out by IDRBT and IBA. When farmers sell their output at procurement centres, mandies, etc., this will allow them to easily transact with input dealers and credit their sales revenues to their accounts.
New KCCs must be supplied as debit cards that double as smart cards. Farmers must be given smart cards and debit cards even when their current KCCs are renewed.
Until a composite card can be issued under the proper software to account for transactions of the short-term credit limit and the term loan limit under the KCC system, two distinct electronic cards can be issued for all new or renewed cards.
Eligibility for the Kisan Credit Card Scheme
Farmers who are owner cultivators, whether they are solo or joint debtors
Sharecroppers, tenant farmers, and oral lessees
Joint Liability Groups (JLGs) and Self Help Groups (SHGs) of farmers, such as tenant farmers and sharecroppers
Purpose of the Kisan Credit Card Scheme
The following uses are permitted for the credit and loans made possible by the Kisan Credit Card program:
To fulfil the short-term loan requirements for growing crops, such as seasonal vegetable crops for horticulture
Horticultural flowers, fruits, spices, plantation crops, fragrant plants, and medicinal plants are examples of medium- or long-duration crops that demand operating capital.
To pay for finance and post-harvest costs using an e-Negotiable Warehouse Receipt (NWR)
Create a loan for marketing.
To fulfil the domestic consumption needs of farmers
To fulfil the working cash needs for farm asset upkeep
To fulfil the working capital needs for maintenance operations related to fisheries, dairy, poultry, mushrooms, other ruminants, sericulture, beekeeping, etc.
What are the Benefits of the Kisan Credit Card Scheme?
The Kisan Credit Card limit is determined by land ownership, crop type, and purpose. Limits are calculated as follows:
Short-term loan limit for the first year of agricultural cultivation for one crop in a year
Scale of finance for the crop chosen by the District Level Technical Committee x Area of cultivation
+ 10% of the limit for household, post-harvest, or consumption needs.
+ 20% of the limit for farm asset upkeep and repairs.
+ crop and accident insurance, including health, Personal Accident Insurance Scheme (PAIS), and asset insurance.
Loan limit for the second and following years of agricultural cultivation
The first-year restriction is for crop cultivation reasons.
+ 10% of the limit for cost escalation or rise in the scale of finance for each succeeding year, i.e., second, third, fourth, and fifth year.
+ projected term loan component for the duration of the Kisan Credit Card, i.e., 5 years
Loan limit for planting more than one crop in a year
The limit will be determined as above, based on the farmed crops as per the planned cropping pattern for the first year.
+ an additional 10% of the limit towards cost escalation or rise in the scale of finance for each succeeding year, i.e., the second, third, fourth, and fifth year.
However, if a farmer's cropping pattern changes in future years, the limit will be modified.
Loan limit for investment in growing more than one crop in a year
The term loan for investment should be used to purchase farm equipment, small irrigation, land development, and related agricultural activities. The banks will set the volume of term credit and working capital limit for agriculture and associated sectors based on:
Unit cost of the asset offered for purchase by the farmer
The linked tasks are already in action on the farm.
The bank's judgment about repayment capacity
The farmer's total financial load includes existing loan obligations.
Maximum allowed limit.
The Maximum Permissible ceiling (MPL) is the short-term loan ceiling established for the fifth year.
+ The projected term loan requirement will be considered as the Kisan Credit Card limit.
Interest Rate on Kisan Credit Card Scheme
The interest rates on KCC loans are as follows:
Interest rates for up to Rs 3 lakhs are 7% per year, subject to the government giving an interest subsidy*.
Above Rs 3 lakhs—as applicable from time to time
The Prompt Repayment Incentive (PRI) provides a 3% annual interest subvention up to Rs 3 lakh. However, to receive an interest subsidy, you must submit your Aadhaar details to the bank.
*Note: Interest rates may differ from bank to bank. Although most banks offer a 7% interest rate, it may rise to 13%.
Steps to Apply for the Kisan Credit Card Scheme Online
The application process differs depending on the bank. Here's how to apply for a Kisan Credit Card loan online:
Visit the bank's website or mobile banking app to apply for a Kisan Credit Card loan.
Go to the 'Agri Loans' area and select 'Kisan Credit Card'.
Click on 'Apply' or 'Download Application Form'.
Fill out the online/downloaded application form with the necessary information and click 'Submit' or send it to the bank.
You will be given an application reference number.
The bank will review the qualifying requirements and notify you within 3-4 working days to continue the process.
Steps to Apply for the Kisan Credit Card Scheme Offline
Follow the steps below to apply for the Kisan Credit Card Scheme offline:
Visit the bank branch where you wish to apply for the KCC plan.
Get the application form from the bank representatives.
Fill out the application form, attach the necessary documents, and submit it to the bank branch.
The bank representatives will review the form and process the loan amount.
Documents Required for the Kisan Credit Card Scheme
Kisan Credit Card Loan Application Form
Two passport-sized photographs.
Identity proof, such as an Aadhaar card, driving licence, voter ID, and passport.
Address proof, such as an Aadhaar card or driver's license.
Proof of landholding approved by the revenue authorities.
Cropping pattern or crop farmed by acreage
Security documents for loan limits above Rs 3 lakhs, if applicable.
Any other required document.
As of December 31, 2024, a total of Rs 10.05 lakh crore had been distributed to farmers through the Kisan Credit Cards, benefiting 7.72 crore farmers. The Kisan Credit Card plan greatly assists farmers by providing loans and credit anytime they need it for agricultural and related operations. Its scope has also been expanded to give credit for a farmer's investment in crop cultivation, allowing farmers to receive funds quickly for their farming activities.
Kisan Credit Card Delivery Channels
Farmers can utilise the Kisan Credit Card to conduct transactions in their KCC account using the following delivery channels:
Withdrawal via ATMs or Micro ATM
Withdrawal via Business Correspondents (BCs) with smart cards
PoS machine via input dealers.
Mobile Banking with IMPS capability, or IVR
Aadhar-enabled cards
Top Banks Offering Kisan Credit Card
The following is a list of leading banks that offer Kisan credit cards to farmers.
NABARD is a bank for farmers that provides long-term lending to suit their agricultural needs.
The State Bank of India (SBI) provides credit to farmers for agricultural and allied operations.
Bank of India offers numerous farmer-friendly policies with cheaper interest rates.
IDBI Bank provides credit to farmers to help them satisfy financial requirements for farming.
Thus, the main banks listed above provide credit to farmers and extend the kisan credit card plan to assist them in carrying out agricultural activities successfully.
Conclusion
As of December 31, 2024, a total of Rs 10.05 lakh crore had been distributed to farmers through the Kisan Credit Cards, benefiting 7.72 crore farmers. The Kisan Credit Card plan greatly assists farmers by providing loans and credit anytime they need it for agricultural and related operations. Its scope has also been expanded to give credit for a farmer's investment in crop cultivation, allowing farmers to receive funds quickly for their farming activities.
Frequently Asked Questions
What type of facilities are available for finance under the scheme?
The Kisan Credit Card Scheme provides term loans and investment credit. It also covers agricultural cultivation, including seasonal horticulture vegetable crops, as well as working capital requirements for medium or long-duration crops, including horticultural flowers, fruits, spices, plantation crops, fragrant plants, and medicinal plants.
What is the validity period of the Kisan Credit Card?
The Kisan Credit Card has a 5-year validity period, which is subject to annual renewal.
What is the age requirement to apply for a Kisan Credit Card?
The Kisan Credit Card has a 5-year validity period that can be renewed annually.
Who is not eligible for the Kisan card?
Individuals who are not farmers or company owners are ineligible for the Kisan Card. Only farmers who are owner cultivators, oral lessees, tenant farmers, share croppers, Joint Liability Groups (JLGs), or Self-Help Groups (SHGs) are eligible for the card.
Can we withdraw money from the Kisan Credit Card?
Yes, farmers can withdraw cash from their Kisan Credit Card account up to the credit limit assigned to them. They can also withdraw money using ATMs or bank checks.
What are the Security norms for financing under the Kisan Credit Card?
The principal security for funding through the Kisan Credit Card is the hypothecation of growing crops or assets to be generated. Banks would waive margin and security restrictions on loans up to Rs. 1 lakh.
Applicants may be required to submit collateral at the discretion of the bank for loan limits exceeding Rs 1 lakh in non-tie-up cases and Rs 3 lakh in tie-up loans. The collateral for a 100% loan can be an equitable mortgage, a registered mortgage of land, or immovable property, depending on the value.
In the case of a tie-up arrangement, collateral is waived for a maximum of Rs 3 lakhs. Banks may also consider granting loans for agricultural hypothecation up to Rs 3 lakh without requiring collateral security.
What is the Kisan Credit Card customer care?
For any questions about your Kisan Credit Card plan, use these two toll-free numbers: 1800115526 or 011-24300606.
How to check the Kisan Credit Card balance?
You can check your Kisan Credit Card balance online by logging onto the bank's website, or you can call customer service for more information.
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