Crop Loan / Kisan Credit Card

A Crop Loan or Kisan Credit Card (KCC) is a government-backed credit facility designed to provide short-term financial assistance to farmers for agricultural and allied activities.
It helps farmers meet expenses related to crop cultivation, equipment purchase, irrigation, fertilizers, and seeds, ensuring continuous farm operations without financial stress.
Launched by the Government of India and NABARD, the KCC scheme offers low-interest loans, flexible repayment options, and insurance coverage, promoting rural development and farmer welfare.

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    Types of Crop Loan / Kisan Credit Card

    Crop loans and KCC facilities are categorized based on purpose, duration, and beneficiary type.
    Below are the main types available to farmers and agribusiness owners:

    Short-Term Crop Loan

    Provides funds for seasonal agricultural expenses, such as seeds, fertilizers, and irrigation. Typically repayable after the harvest season (6–12 months), with subsidized interest rates under government schemes.

    Medium-Term Agricultural Loan

    Designed for farmers looking to purchase small farm equipment, cattle, or develop irrigation systems. The repayment tenure ranges from 3 to 5 years.

    Long-Term Agricultural Loan

    Aimed at farmers planning to invest in land development, farm mechanization, or warehouse construction. Repayment can extend up to 7–10 years, based on project viability.

    Kisan Credit Card (KCC) Loan

    A credit card-like facility that allows farmers to withdraw funds as needed for crop production or household requirements. The credit limit is decided based on landholding, cropping pattern, and income. Farmers pay interest only on the amount utilized, and interest subsidies up to 3% are available for timely repayment.

    Allied Agricultural Activity Loan

    Covers non-crop farming activities such as dairy, poultry, fisheries, horticulture, and sericulture, ensuring holistic support for the farming community.

    Farm Equipment / Tractor Loan

    Offered to purchase tractors, harvesters, or other machinery, improving productivity and reducing manual labour costs.

    Why Is Crop Loan / Kisan Credit Card Important?

    Ensures Timely Access to Credit

    Provides immediate funds to farmers for buying inputs, managing cultivation, and handling emergencies.

    Reduces Dependence on Moneylenders

    Offers formal, low-interest credit through banks, reducing reliance on high-interest informal loans.

    Encourages Agricultural Growth

    Helps farmers increase productivity, adopt technology, and improve crop yields.

    Interest Rate Subsidy

    Farmers can avail up to 2% interest subvention and 3% additional rebate for timely repayment, bringing effective interest rates as low as 4% p.a.

    Insurance Coverage

    KCC includes crop insurance and personal accident insurance, providing financial safety in case of crop failure or unforeseen events.

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    FAQs

    What is a Crop Loan / Kisan Credit Card (KCC)?

    It is a credit scheme that provides short-term and long-term loans to farmers for crop cultivation and allied agricultural needs at low interest rates.

    All farmers (individuals, joint borrowers, tenant farmers, sharecroppers, and self-help groups) engaged in agriculture or allied activities are eligible.

    Loan limits vary from ₹10,000 to ₹3 lakh under KCC, depending on landholding size, crop type, and repayment capacity.
    Higher limits are available for agri-infrastructure projects.

    The base interest rate is around 7% per annum, with government interest subsidies reducing it to 4% for timely repayments.

    Crop loans are generally repayable after the harvest season, while long-term loans can extend up to 7–10 years.

    • Aadhaar and PAN card
    • Land ownership / lease documents
    • Passport-size photographs
    • Bank account details
    • KYC and income proof (if required)

    Loans up to ₹1.6 lakh under KCC are collateral-free, while higher amounts may require land or gold as security.