Access to timely credit is a crucial factor in the success of any farming operation. To ensure that farmers do not fall into the trap of high-interest informal loans, the Government of India launched the Kisan Credit Card (KCC) scheme in 1998. This scheme aims to provide hassle-free and affordable credit to farmers for their agricultural needs.
Backed by NABARD (National Bank for Agriculture and Rural Development), the KCC scheme has benefited millions of farmers by offering flexible and accessible short-term credit.
Objectives of the KCC Scheme
- To provide short-term credit for cultivation and other needs such as the purchase of seeds, fertilizers, pesticides, etc.
- To support expenses related to harvesting, marketing, storage, and consumption requirements.
- To help farmers avail of credit at a low interest rate with flexible repayment terms.
Key Features of KCC
- Loan limit based on cropping pattern, farm size, and farmer’s income.
- Interest rates as low as 4% (after subsidy) for loans up to ₹3 lakh.
- Credit card-like format for easy withdrawals from ATMs or bank branches.
- No collateral required for loans up to ₹1.6 lakh.
- Repayment period up to 3 to 5 years with options for renewal.
Who Can Apply?
- Individual farmers, joint borrowers, tenant farmers, oral lessees, and sharecroppers.
- Self Help Groups (SHGs) or Joint Liability Groups (JLGs) involved in agriculture or allied activities.
How to Apply for a KCC
Farmers can apply through:
- Public or private sector banks
- Regional rural banks (RRBs)
- Cooperative banks
Documents Required:
- Aadhaar Card
- Land documents (or lease proof for tenants)
- PAN card (if available)
- Passport-sized photographs
- Bank account details
Benefits of KCC
- Ensures financial independence and reduces reliance on local moneylenders.
- Flexible withdrawal and repayment options.
- Coverage includes not just crops, but also animal husbandry, fisheries, and allied activities.
- KCC holders are also eligible for insurance coverage under schemes like PMFBY.
Recent Updates
To further expand the reach, the government has integrated the KCC scheme with the PM-KISAN scheme, encouraging more farmers to enroll. The process has also been simplified for animal husbandry and fisheries.
Conclusion
The Kisan Credit Card (KCC) is more than just a loan facility—it is a lifeline for farmers. It empowers them with the financial confidence to invest in quality inputs, improve productivity, and manage emergencies without stress.
Farmers are encouraged to take full advantage of the KCC scheme and secure their financial future with this accessible, government-backed initiative.
