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Kisan Credit Card (KCC)

The Kisan Credit Card (KCC) is a revolving short-term credit facility designed for cultivators to meet crop production, post-harvest, marketing, consumption and allied-sector (dairy, fisheries, animal husbandry) needs. It was designed by the National Bank for Agriculture and Rural Development (NABARD) in collaboration with the Reserve Bank of India and launched in 1998.

Overview

A KCC is issued by commercial banks, regional rural banks, small finance banks and cooperative banks against a single sanctioned limit that covers the farmer's crop-cycle borrowing for a multi-year period. Drawings within the limit can be made through the card or linked savings account, and repayment is tied to the harvest cycle of the borrower's crop.

Eligibility

All farmers — individual or joint cultivators, tenant farmers, oral lessees, sharecroppers and members of self-help groups undertaking farming — are eligible. The limit for the first year is computed from a scale-of-finance for the principal crop and the farmer's cultivated area, with provisions for ancillary working capital and allied-sector activities.

Benefit and structure

  • Base interest rate: 7% per annum on the agricultural-purposes portion of KCC
  • 2% interest subvention from the Centre and 3% prompt-repayment incentive bring the effective rate down to 4% per annum on prompt-repaid drawings up to Rs 3 lakh
  • As of 2025, operative KCC outstanding crossed Rs 10 lakh crore covering approximately 7.72 crore farmers

The scheme also extends to dairy, poultry, fisheries (linked to Fisheries Pond Subsidy Pmmsy) and livestock-rearing (see Nlm Scheme Livestock) purposes with separate sub-limits.

Implementation

The Reserve Bank's Master Direction on KCC governs operational norms. PACS at the village level (see Primary Agricultural Cooperative Society Pacs) and commercial-bank rural branches are the primary disbursing channels, with NABARD providing refinance. PMFBY insurance coverage (see Pmfby Crop Insurance) is offered alongside KCC for loanee farmers on an opt-out basis.

See also Primary Agricultural Cooperative Society Pacs, Pm Kisan Samman Nidhi, Nabard Agri Infrastructure Fund and Pmfby Crop Insurance.

References

  1. Master Circular on Kisan Credit Card Scheme. Reserve Bank of India.
  2. KCC Crosses Rs 10 Lakh Crore. Press Information Bureau.