Kisan Credit Card Scheme- The Kisan Credit Card (KCC) Scheme, introduced in 1998 by the Government of India, was designed to provide farmers with easy access to credit at low interest rates. Before the KCC, many farmers relied on moneylenders, who charged high-interest rates, often leaving them in debt.
The KCC is available to a wide range of farmers, including landowners, tenant farmers, and sharecroppers. Farmers can apply for the card online or offline, and they are required to provide basic documents such as proof of identity, land records, and cropping details. This scheme has significantly improved financial access for farmers, making it easier for them to manage their agricultural expenses and investments.
Kisan Credit Card Scheme 2025
The scheme aimed to address this issue by offering timely financial assistance for agricultural needs, such as purchasing seeds, fertilizers, and equipment, as well as meeting post-harvest expenses. Over time, the KCC has been expanded to cover long-term investments in land improvement and machinery.
Additionally, digital upgrades, such as electronic cards and biometric authentication, were introduced to make the process more convenient. The scheme also offers low-interest rates, with farmers benefiting from a 4% annual interest rate, along with a 2% government subsidy and a 3% reward for prompt repayment.
Kisan Credit Card Scheme 2025 Overviews
| Feature | Details |
| Launched | 1998 |
| Objective | Easy credit access for farmers |
| Interest Rate | 4% per annum (with subsidies for timely repayment) |
| Category | Govt Schemes |
| Eligibility | Farmers (landowners, tenants, sharecroppers) |
| Loan Types | Short-term (seasonal) & Long-term (investments) |
| Application | Online or offline at bank branches |
Purpose of the KCC Scheme
The primary objective of the Kisan Credit Card scheme is to provide farmers with quick and easy access to credit for various agricultural purposes. It helps them manage expenses related to farming, such as purchasing seeds, fertilizers, and other inputs. Additionally, it assists with post-harvest expenses, transportation, repair of agricultural equipment, and even family consumption requirements. The scheme also supports allied farming activities, including dairy farming, poultry farming, and fisheries. For long-term investments, the KCC offers loans for land improvement and the purchase of machinery, thus helping farmers invest in the future of their farming enterprises.
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Types of Cards Provided to Farmers
Under the Kisan Credit Card scheme, different types of cards are available to farmers, depending on the bank and the specific needs of the farmers. These cards are designed to work within the existing banking systems and provide farmers with convenient access to their funds. Below are the various types of cards offered under the scheme:
- Magnetic Stripe Card with PIN: This card can be used at ATMs and micro ATMs, providing secure transactions through a PIN.
- Biometric Card Linked to Aadhaar: This card uses fingerprint authentication through the UIDAI database for secure access.
- EMV and RuPay Chip Cards: These cards offer enhanced security and work across various digital platforms.
- Smart Biometric Card: This card is used through bank agents and point-of-sale (POS) machines to facilitate transactions.
These cards provide farmers with multiple ways to withdraw money, including through ATMs, POS machines at agricultural input shops, mobile banking apps, and Aadhaar-enabled platforms at Common Service Centres (CSCs). This reduces the need for farmers to travel long distances to access funds, thus saving time and effort.
How and Where Farmers Can Use the Card?
Farmers can use their Kisan Credit Cards in various ways to access funds and make payments. Some of the most common methods include:
- ATMs and micro ATMs: These are often set up in rural areas to ensure easy access for farmers.
- Bank agents: Farmers can use smart cards or biometric devices provided by bank agents to withdraw money.
- POS machines: These are available at agricultural input stores, markets, and other locations where farmers purchase goods.
- Mobile banking: Farmers can use mobile apps or voice response services to manage their accounts.
- Aadhaar-enabled platforms: These services are available at Common Service Centres (CSCs), making it easy for farmers to access funds without visiting a bank branch.
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Fixing the Credit Limit for Farmers
The credit limit for each farmer is determined based on several factors, including the type of crops they grow, the size of their land, and their specific investment needs. There are two main types of loans offered under the KCC scheme:
- Short-Term Loans: These loans are provided to cover seasonal crop expenses. The credit limit is calculated based on the cost of cultivation, area under cultivation, and additional expenses such as post-harvest and home use needs.
- Long-Term Loans: These are meant for larger investments, such as land improvement, machinery purchase, or allied farming activities. The credit limit for these loans is based on the farmer’s repayment capacity and the bank’s evaluation.
The total credit limit is determined by adding the short-term loan requirement for the upcoming season to the estimated long-term loan requirement. This gives the Maximum Permissible Limit (MPL) for the farmer. If a farmer cultivates multiple crops, the credit limit is calculated based on the expected cost of all crops.
Division into Sub-Limits
To help farmers better manage their finances, the total loan amount is divided into short-term and long-term categories. This makes it easier for farmers to understand how much money is available for seasonal farming activities and how much is meant for long-term investments. In some cases, farmers may need to provide collateral or additional documents if their loan amount exceeds a certain threshold.
Who Can Apply for a Kisan Credit Card?
The Kisan Credit Card scheme is designed to benefit a wide range of individuals involved in agriculture. It covers not just land-owning farmers but also tenant farmers, oral lessees, and sharecroppers. The following groups are eligible for the scheme:
- Farmers who own and cultivate land: This includes both individual farmers and joint owners.
- Tenant farmers: Farmers who rent land for cultivation.
- Oral lessees: Farmers who have verbal agreements to cultivate land.
- Sharecroppers: Farmers who split the produce with the landowner.
- Self Help Groups (SHGs) and Joint Liability Groups (JLGs): These groups, which are engaged in farming activities, are also eligible.
This wide eligibility ensures that small and marginal farmers, as well as those involved in allied farming activities, can access financial support.
How to Apply for a Kisan Credit Card?
Farmers can apply for a Kisan Credit Card through both online and offline methods, depending on their convenience.
- Online Application: Farmers can visit the official website of their preferred bank and navigate to the KCC section. After filling in their personal and farming details, they can submit the application. Upon submission, the bank will issue a reference number, and the farmer will be contacted for further processing.
- Offline Application: Farmers can visit the nearest bank branch to collect an application form. Bank staff will guide them through the process, helping with document submission and verification.
Documents Required for Application
To process the Kisan Credit Card application, banks typically require the following documents:
- A completed application form with photographs.
- Proof of identity and address (such as Aadhaar card or voter ID).
- Land documents certified by revenue officials.
- Details of the crops being grown, including the area under cultivation.
- Security documents (if applying for a large loan).
- Any other documents as specified by the bank.
Once the documents are verified and the application is approved, the bank will issue the Kisan Credit Card to the farmer.
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Conclusion
In conclusion, the Kisan Credit Card (KCC) Scheme has played a crucial role in transforming agricultural financing in India. By providing farmers with easy access to credit at low-interest rates, the scheme has helped reduce their dependency on exploitative moneylenders. With its flexible credit options for both short-term and long-term needs, the KCC has empowered farmers to manage their cultivation expenses, invest in agricultural improvements, and secure a better future for their farming activities.
Kisan Credit Card Scheme FAQ’S
What is the Kisan Credit Card (KCC)?
The KCC is a scheme that provides farmers with easy access to credit for agricultural needs at low-interest rates.
Who can apply for the Kisan Credit Card?
Farmers, including landowners, tenant farmers, and sharecroppers, are eligible to apply for the KCC.
How can I apply for a Kisan Credit Card?
You can apply online through your bank's website or offline by visiting a nearby bank branch.
What documents are required to apply for a KCC?
Required documents include identity proof, land records, cropping details, and security documents (if applicable).
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