Kisan Credit Card (KCC) Scheme {किसान क्रेडिट कार्ड योजना}

Updated on May 28, 2020

The Kisan Credit Card (KCC) scheme was launched in 1998 to provide short-term formal credit to farmers. Prime Minister Narendra Modi recently launched a saturation drive to distribute the Kisan Credit Cards (KCC) to all the beneficiaries under the PM-KISAN Scheme in Uttar Pradesh's Chitrakoot. 

Under this scheme, over 25 lakh beneficiaries of PM Kisan all over the country have been provided KCC and over 2,000 bank branches in rural areas have been tasked with giving the KCC to farmers. The owner cultivators, as well as tenant farmers, can avail loans on these KCCs to meet their agricultural needs at attractive rates of interest. State Bank of India (SBI), the country's leading lender, offers farmers a Kisan credit card (KCC). 

The Objectives of Kisan Credit Card (KCC) Scheme 

The main motive of Kisan Credit Card Loan is to offer loans to farmers at a low rate of interest. 

Before launching this scheme, a lot of farmers relied on money lenders who charged a high rate of interest and were severe on the due date. 

  • This scheme will solve a lot of problems for farmers, especially when they suffered calamity such as hailstorm, drought, etc.
  • The Kisan credit card loans charge a meagre rate of interest from farmers and offer flexible repayment schedules. 
  • Crop insurance, as well as collateral-free insurance, is also offered to the user. 

Details of Kisan Credit Card Loan scheme 

The Details of the Kisan Credit Card Loan scheme is mentioned below:

  • The Interest rate offered under this scheme on loan is just 2.00%. This is very low.
  • Banks will not allow taking security on loans up to Rs. 1.60 lakh.
  • There is crop insurance coverage against a variety of calamities is provided to the farmers.
  • The farmer can get insurance coverage against permanent disability, death, as well as other risks.
  • The reimbursement time is decided based on the harvesting of crop and its selling period.
  • The cardholder is allowed to get a maximum loan of up to Rs. 3.00 lakh.
  • The Farmers who will deposit their money in the Kisan Credit Card account will get a high rate of interest under this scheme.
  • When the Farmers make the prompt payment, they are charged a simple interest rate.
  • Compound interest will be charged from the cardholder when he fails to make timely payments.
  • Kisan Credit Card is a Boon for Farmers in India.

Features and Benefits

The main key features and benefits of the Kisan credit card are mentioned below:

  • If the farmer saves money in the Kisan credit card account, then he will get high interest in it.
  • When the beneficiary wants to withdraw money from Kisan credit card he can use ATM cum debit card which will be provided under this scheme.
  • The Kisan credit card is also known as State Bank Kisan Card.
  • The interest rate under this scheme is 2% per annum on the amount of up to Rs 3 lakh.
  • Additional interest will be provided at 3% per annum if the beneficiary makes prompt repayments.
  • Notified areas are covered under the crop insurance for all KCC loans.
  • The first-year loan will be provided to the customers based on the cost of cultivation, post-harvest expenses as well as farm maintenance cost.
  • And for the next five tears, loans will be provided based on the increase in the scale of finance.
  • For KCC limit up to Rs 1.60 lakh, Collateral security is waived.
  • Sanctioned KCC limit will be measured to fix security requirements.
  • Simple interest at 7% per annual will be charged for one year or up to the repayment due date.
  • In case of non-repayment within the due dates, the interest is applied at the card rate. 
  • Beyond the due date, the compound interest rate will be applied.
  • The repayment time may be fixed as per the predictable harvesting and marketing period for the crops for which a loan has been provided.
  • KCC can provide short term loans to farmers at an interest rate of 4 percent on the condition of timely payment.

Eligibility Criteria

Kisan credit card loans can be got by anyone who is engaged in agriculture, allied activities, or other non-farming activities. But the candidate must have to fulfil eligibility criteria to get a loan under this scheme.

  • The Minimum Age required for the loan is 18 years, and the Maximum Age is 75 years.
  • If in case the borrower is senior citizen means 60+ years, then a co-borrower is mandatory to mention where the co-borrower should be called a legal heir.
  • All farmers and individuals, joint cultivators, owners are eligible to apply under this scheme.
  • Tenant farmers, oral lessees, as well as sharecroppers, etc. are also eligible for this scheme.
  • SHGs or joint liability groups that include tenant farmers.

Documents Needed

The documents that might be needed by the bank to process the Kisan Credit Card Loan scheme in India are mentioned below:

  • The candidates must have to provide proof of Identity like PAN Card, Aadhaar Card, and Voter ID card, Passport, Driving License, or any other government-approved photo ID.
  • The beneficiary has to provide proof of Address. For this, the recipient can submit Aadhaar Card, Passport, Utility bills, or any other government-approved address proof.
  • The candidates have to give Income proof for this he can provide a bank statement for the last 3 months, Salary slips for the previous 3 months, Audited financials for the previous two years (for self-employed), Form 16, etc.
  • The applicant has to submit land documents.
  • Latest photo with the applicant's signature to be submitted.

The Registration Process

To get the SBI Kisan Credit Card, you have to follow a straightforward process. The process is mentioned below:

1. At first, you have to visit the SBI Bank official website that is sbi.co.in. 

2. After visiting the official website, click on the 'Agricultural and Rural' tab.

3. Under 'Agricultural Banking', you will see 'Kisan Credit Card', click on it.

4. Click on the "Application Form" button and download it.

5. Now you will need to print and fill the details. Then, you will need to submit it at the bank branch. 

How to Apply for a KCC Loan?

To apply for KCC loan, the applicant has to contact his nearest branches engaged in agricultural advance, or he can talk to the marketing officers by visiting the village. After that, the candidate has to fill the application form and have to attach some documents like identity and address proof along with the application form.

Frequently Asked Questions

Q: What is KCC loan and which institute designed it?

Kisan Credit Card or KCC is a scheme launched to provide farmers with financial support and designed explicitly by NABARD.

Q: What is a crop loan?

Crop loans provide farmers with the necessary support to help them meet their working capital requirements.

Q: What is the validity period of the Kisan Credit Card?

The validity of KCC is 5 years. You are allowed to use the money of KCC for 5 years for agriculture needs.

Q: What is the age requirement for the KCC loan?

The applicant must be between 18 to 75 years of age.


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WRITTEN BYVarsha Verma

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