Kisan Credit Card (KCC) Scheme

✦Key Features

• 7.75 crore active KCC accounts; ₹9.81 lakh crore outstanding (Economic Survey 2024-25)
• Interest rate: 7% p.a. on crop loans; 3% interest subvention = effective 4% for timely repayment
• Budget 2025-26: MISS loan limit raised ₹3 lakh → ₹5 lakh; 5.9 crore farmers mapped via Kisan Rin Portal
• Extended to fisheries (₹2 lakh limit; 1.24 lakh KCCs) and animal husbandry (₹2 lakh; 44.40 lakh KCCs)
• Collateral-free up to ₹1.60 lakh; RuPay KCC debit card for ATM/PoS use
• PM-KISAN beneficiaries automatically eligible for KCC
• Coverage: agriculture + allied activities + post-harvest + consumption needs

✓Eligibility Criteria

• Individual or joint farmers who are owner cultivators of their land
• Tenant farmers, oral lessees, and sharecroppers are eligible to apply for credit
• Self Help Groups or Joint Liability Groups of farmers and individual cultivators
• Farmers involved in animal husbandry, dairy, poultry, and fisheries sectors

★Benefits

• Provision of adequate and timely credit for crop production and post-harvest expenses
• Interest subvention of 2% and an additional 3% for farmers who repay loans promptly
• Flexible withdrawal and repayment facility based on the crop harvesting cycle
• Insurance coverage against crop damage due to natural calamities under associated schemes

▶Application Process

• Visit the nearest commercial, rural, or cooperative bank to obtain the KCC application form
• Fill the form with details of landholding and crops proposed to be grown
• Verification of land records or tenancy status by the bank's field officer
• Sanction of the credit limit and issuance of the KCC card with a passbook

₹ Budget Allocation

3000

Funding Ratio (Centre:State): Implemented by Commercial Banks, RRBs, and Cooperatives; Interest subvention is 100% Central Government funded

Historical Context

Introduced in 1998 based on the recommendations of the R.V. Gupta Committee.