Kisan Credit Card

What is Kisan Credit Card?

The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs and draw cash for their production needs.

Benefit

Fixation of credit limit/Loan amount The short-term limit to arrive for the first year: For farmers raising a single crop in a year: Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest / household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance. Limit for second & subsequent year : First-year limit for crop cultivation purposes arrived at as above plus 10% of the limit towards cost escalation/increase in the scale of finance for every successive year ( 2nd, 3rd, 4th and 5th year) and estimated Term loan component for the tenure of Kisan Credit Card, i.e., five years. For farmers raising more than one crop in a year, the limit is to be fixed as above depending upon the crops cultivated as per the proposed cropping pattern for the first year and an additional 10% of the limit towards cost escalation/increase in the scale of finance for every successive year (2nd, 3rd, 4th and 5th year). It is assumed that the farmer adopts the same cropping pattern for the remaining four years also. In case the cropping pattern adopted by the farmer is changed in the subsequent year, the limit may be reworked. Term loans for investments towards land development, minor irrigation, purchase of farm equipment and allied agricultural activities. The banks may fix the quantum of credit for the term and working capita

Level

Central

Ministry / Dept.

Ministry Of Agriculture and Farmers Welfare

Benefit type

cash

Key eligibility

**Eligibility** 1. Farmers - individual/joint borrowers who are owner cultivators; 1. Tenant farmers, oral lessees & share croppers; 1. Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc

Last verified

Recently

Benefits

Fixation of credit limit/Loan amount The short-term limit to arrive for the first year: For farmers raising a single crop in a year: Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest / household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance. Limit for second & subsequent year : First-year limit for crop cultivation purposes arrived at as above plus 10% of the limit towards cost escalation/increase in the scale of finance for every successive year ( 2nd, 3rd, 4th and 5th year) and estimated Term loan component for the tenure of Kisan Credit Card, i.e., five years. For farmers raising more than one crop in a year, the limit is to be fixed as above depending upon the crops cultivated as per the proposed cropping pattern for the first year and an additional 10% of the limit towards cost escalation/increase in the scale of finance for every successive year (2nd, 3rd, 4th and 5th year). It is assumed that the farmer adopts the same cropping pattern for the remaining four years also. In case the cropping pattern adopted by the farmer is changed in the subsequent year, the limit may be reworked. Term loans for investments towards land development, minor irrigation, purchase of farm equipment and allied agricultural activities. The banks may fix the quantum of credit for the term and working capita

Eligibility

Documents Required

How to Apply

1. Step 1: Online application — step 1

   Visit the website of the bank you wish to apply for the kisan credit card scheme. From the list of options, choose the Kisan Credit Card. On clicking the option of ‘Apply’, the website will redirect you to the application page. Fill the form with the required details and click on ‘Submit’. On doing so, an application reference number will be sent. If you are eligible, the bank will get back to you for the further process within 3-4 working days.

2. Step 2: Offline application — step 1

   Offline applications can be done by visiting the branch of the bank of your choice or by downloading the application form from the website of the bank as well. The applicant can visit the branch and begin the application process with the help of the bank representative.

Sources & References

• Official scheme website ↗
• Source record ↗
• Information is summarised from official government sources. Verify all details on the official website before applying.