Kisan Credit Card (KCC) Loan
The Kisan Credit Card (KCC) Loan is a government-backed scheme designed to provide short-term credit to farmers for agricultural and allied activities. It ensures that farmers have easy access to affordable loans for crop cultivation, equipment purchase, livestock, fisheries, and other rural development activities. The scheme aims to reduce farmers’ dependency on informal credit and promote sustainable agricultural growth.
Types Of Kisan Credit Card Loan
KCC Loans are categorized based on the purpose and type of farming activity they support, ensuring farmers receive tailored financial assistance suited to their specific agricultural and allied needs.
Crop Loan (Production Credit)
For meeting expenses related to seeds, fertilizers, pesticides, irrigation, and other crop inputs.
Farm Mechanization Loan
For purchasing tractors, harvesters, irrigation systems, and other farm equipment.
Allied Activities Loan
Covers livestock rearing, dairy farming, poultry, fisheries, and beekeeping.
Post-Harvest Loan
For storage, transportation, and marketing of harvested produce to help farmers avoid distress sales.
Consumption Loan
Provides limited credit for household or emergency needs of farmers.
Investment Loan
For long-term agricultural investments such as land development, greenhouse setup, or farm infrastructure.
Why Kisan Credit Card Loan Is Important?
Eligibility Criteria
Available to farmers involved in crop cultivation, allied activities, or agri-related occupations such as fisheries and dairy.
Loan Amount & Limit
Credit limits are determined based on landholding, crop type, and farming expenses; typically ranging from ₹10,000 to ₹3,00,000 or more.
Interest Rate & Subsidy
Interest rates are generally between 4%–7% annually after government subsidy under the Interest Subvention Scheme.
Repayment Period
Crop loans are repayable after the harvest season, while long-term loans may extend up to 5 years or more.
FAQs
What is a Kisan Credit Card (KCC) Loan?
It is a loan facility introduced by the Government of India to provide farmers with timely and affordable credit for agricultural and allied needs.
Who is eligible for a KCC Loan?
All farmers engaged in crop cultivation, allied activities, tenant farmers, and sharecroppers are eligible.
What documents are required for a KCC Loan?
Applicants need ID proof, land records, crop details, bank account details, and passport-sized photos.
What is the maximum loan limit under KCC?
Depending on the applicant’s land and crop pattern, it can range from ₹50,000 to ₹3,00,000 or more.
What is the interest rate for KCC Loans?
The effective interest rate is around 4% per annum after applying the government’s interest subsidy.
How can farmers apply for a KCC Loan?
Farmers can apply online through their bank’s portal or visit the nearest branch with required documents.