Sarkari Yojana

Kisan Credit Card Scheme: Objective, Eligibility, and How to Apply

Updated on 09th February, 2024, By Neesha Rathod
Kisan Credit Card Scheme: Objective, Eligibility, and How to Apply
Kisan Credit Card (KCC) is an affordable credit facility for farmers wherein they can get access to short term credit for buying inputs. As of 2022, there are over 7.30 crore operational Kisan Credit Cards.

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Agriculture credit in India is the most critical issue that needs to be addressed if the farmers’ prosperity is to be achieved. Over the years, government of India has launched many financial support schemes to meet the credit requirements of the farmers. One of them is the Kisan Credit Card (KCC) scheme. It was launched in the year 1998 to meet the short-term credit requirements of farmers for cultivating crops. It has undergone several revisions to expand the scope of KCC scheme to meet the ever-emerging diverse need of farmers.

In this blog, we will explore the objectives of the Kisan Credit Card scheme, the eligibility criteria for farmers, and the step-by-step process of how to apply for this financial lifeline.

Objectives of KCC Scheme

The primary objective of the KCC scheme is to provide farmers with timely and adequate credit support under a single window to meet their production needs, including agricultural expenses, post-harvest expenses, and working capital requirements. The scheme aims to:

  • Easy Access to Credit: It facilitates easy access to credit for farmers, eliminating the need for them to approach moneylenders or other informal sources.
  • Ensure Timely Availability of Credit: By providing farmers with a revolving line of credit, the scheme ensures that farmers have timely access to funds, allowing them to make agricultural inputs and investments as and when needed.
  • Reduce Dependency on Moneylenders: The KCC scheme aims to reduce farmers' dependency on informal credit sources. Instead, farmers can avail themselves of credit at reasonable and subsidised rates.
  • Enhance Agricultural Productivity: With a reliable source of credit, farmers can invest in modern agricultural practices and purchase quality seeds, fertilisers, and equipment, ultimately enhancing agricultural productivity.
  • Mitigate Financial Stress: The KCC provides farmers with a financial safety net, mitigating financial stress during unforeseen events such as crop failure, natural disasters, or other emergencies.

Features of KCC Scheme

  • It is a Revolving Cash Credit account, meaning, if there is any credit balance, it will fetch Savings account interest rate.
  • It is a need-based financing based on cropping pattern and acreage.
  • The repayment period is according to the marketing period for the crop and the period of the crop.
  • There is an interest subvention of 3% per annum as a prompt repayment incentive of up to INR 3 lakhs.
  • The tenure is of 5 years with an increase of 10% per year subject to annual review. All eligible KCC holders are eligible for Rupay debit cards.

Eligibility Criteria for Kisan Credit Card

To avail of the benefits of the KCC scheme, farmers must meet certain eligibility criteria. Here are the key factors that determine eligibility:

  • Farmers who own agricultural land, including individual farmers as well as joint cultivators.
  • Tenant farmers, oral lessees, and sharecroppers ensuring a broader spectrum of farmers benefit from the scheme.
  • Self Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers.
  • Farmers between the ages of 18 and 75 years are eligible to apply for the Kisan Credit Card.
  • Farmers should have an operational landholding and be engaged in agricultural activities.
  • Having an Aadhar card is a mandatory requirement for availing of the Kisan Credit Card.

How to Apply for the Kisan Credit Card: Step-by-Step Guide

Applying for a Kisan Credit Card involves a straightforward process. Here is a step-by-step guide on how farmers can apply for the KCC:

Step 1: Visit the Nearest Bank or Financial Institution

Visit the nearest branch of a bank or financial institution that offers the KCC scheme. Most nationalised banks, cooperative banks, and rural banks participate in this scheme.

Step 2: Collect the Application Form

Request the KCC application form from the bank. The application form is typically available free of cost. Alternatively, some banks may provide online application forms on their official websites.

Step 3: Fill in the Application Form

Complete the application form with accurate and up-to-date information. The form will require details such as personal information, landholding details, crop details, and information about existing loans, if any.

Step 4: Attach Required Documents

Along with the filled application form, attach the necessary documents. The typical documents required include:

  • Aadhar card as proof of identity
  • Land ownership documents or lease agreement
  • Passport-sized photographs
  • Details of existing loans if any

Step 5: Submit the Application Form

Submit the completed application form along with the necessary documents to the bank. Ensure that all details are accurately filled in to facilitate the smooth processing of your application.

Step 6: Application Processing

Once the application is submitted, the bank will process the application, which includes verification of the provided details. It may involve a field visit to the farmer's land for verification.

Step 7: Approval and Issuance of Kisan Credit Card

Upon successful verification, the bank will approve the application, and the farmer will be issued the Kisan Credit Card. The card typically mentions the credit limit sanctioned to the farmer.

Step 8: Activation of Kisan Credit Card

After receiving the Kisan Credit Card, farmers need to activate the card by visiting the bank and following the bank's specific activation process.

Additional Tips and Information

  • Review the Terms and Conditions: Before applying, carefully review the terms and conditions of the Kisan Credit Card scheme offered by the respective bank. Understand the interest rates, repayment terms, and any associated fees.
  • Regularly Update Information: It is essential for farmers to keep the bank updated with any changes in their contact information, landholding, or other details. It ensures smooth communication and compliance with the scheme.
  • Utilise Credit Wisely: While the Kisan Credit Card provides a line of credit, it's crucial for farmers to utilise it judiciously. Plan your agricultural activities and expenses to make the most of the credit facility.
  • Stay Informed: Farmers should stay informed about any updates or changes in the Kisan Credit Card scheme. It includes being aware of new features, benefits, or subsidies introduced by the government.


The Kisan Credit Card scheme stands as a landmark initiative in supporting Indian farmers by providing them with easy and timely access to credit. By understanding the objectives, eligibility criteria, and the step-by-step application process outlined in this blog, farmers can take advantage of this financial lifeline. The Kisan Credit Card not only empowers farmers to meet their agricultural needs but also plays a crucial role in enhancing agricultural productivity, ensuring food security, and contributing to the overall welfare of the farming community in India.

Neesha Rathod
Published By
Neesha Rathod
Neesha holds a bachelor’s degree in agriculture and a postgraduate degree in Rural Management. With over 10 years of experience in agriculture and the rural sector, she is a quick problem solver. She is inquisitive and has a deep analytics insight into any issues related to agriculture. She loves to travel and explore new places.
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