Kisan Credit Card Scheme: Eligibility, Interest Rates, Documents Required

30^th Nov 2025...

Published By : Team 811

Latest News (2025)

The Ministry of Agriculture continues promoting the Kisan Credit Card (KCC) scheme nationwide to provide timely financial support to farmers.
Interest subvention benefits and prompt repayment incentives are actively extended to farmers with KCC loans up to ₹3 lakh per year.
Many banks, including public and private sector banks, have enabled online Kisan Credit Card Apply facilities for easier access.

Key Takeaways

Farmers can access short-term crop loans and working capital for animal husbandry and fisheries through a single Kisan Credit Card.
Interest rate subvention of 2% and prompt repayment incentive of 3% make credit more affordable for eligible farmers.
The maximum loan limit is ₹3 lakh per annum, with up to ₹2 lakh for animal husbandry and fisheries.
KCC validity is five years, renewable based on crop cycle and farming requirements.

The government of India under the guidance of the Ministry of Agriculture came up with the Kisan Credit Card (KCC). It is a flagship scheme. It provides farmers with timely and adequate credit for agricultural needs, including crop cultivation, working capital, and allied activities such as animal husbandry and fisheries.

The scheme was introduced to reduce farmers’ dependence on informal credit sources and high-interest loans. Through the KCC, farmers gain easier access to short-term loans and term loans with structured repayment options, enabling them to manage production, purchase inputs, and maintain financial stability.

What is a Kisan Credit Card?

The Kisan Credit Card (KCC) is a banking product designed to provide farmers with short-term credit for agricultural purposes. It acts as both a revolving credit and term loan facility, allowing farmers to withdraw funds as per their crop or production needs.

The scheme covers crop loans, working capital for allied activities, and other agriculture-related financing, providing farmers with a single access point to manage all their financial requirements.

Who it Benefits

Small, marginal, and medium farmers engaged in crop cultivation.
Farmers involved in allied activities like dairy, fisheries, and poultry.
Individuals engaged in agriculture or allied activities. Senior citizens may require a co-borrower who is a legal heir.
Farmers requiring short-term finance up to ₹3 lakh for crop production or allied activities.

Key Features & Benefits of Kisan Credit Card

The Kisan Credit Card provides farmers with structured financial access, interest benefits, and flexibility in repayment. Here’s what makes the scheme valuable:

Loan Facilities: Farmers can avail short-term crop loans and working capital for allied activities through a single KCC.
Interest Rate & Subvention:
- Short-term credit interest rate: slightly lower or higher than 7% per annum (subject to bank discretion).
- The government provides 2% interest subvention and 3% prompt repayment incentive for eligible farmers. It reduces the effective interest burden.
Credit Limit:
- Up to ₹3 lakh per annum for agriculture and allied activities.
- Maximum of ₹2 lakh for animal husbandry and fisheries within this limit.
Security/Collateral:
- For loans up to ₹1.6 lakh (or ₹3 lakh for tied-up limits), hypothecation of crops is sufficient.
- For higher amounts, mortgage of land or third-party guarantees may be required in addition to hypothecated assets.
Validity: KCC is valid for five years, with renewal based on crop cycles and repayment history.

Eligibility Criteria for Kisan Credit Card

Farmers engaged in agriculture or allied activities (crop cultivation, dairy, fisheries, poultry, etc.).
Senior citizens may require a co-borrower who is a legal heir.
Must not have any defaults on previous agricultural loans.
Should require credit for crop production, working capital, or allied purposes.

Exclusions Under Kisan Credit Card

Farmers who have defaulted on loans in the past and are declared ineligible by the bank.

Documents Required

Proof of identity (Aadhaar card/voter ID/other valid ID)
Proof of address.
Land ownership or lease documents.
Bank account details (link to Kotak811 suggested).
Income proof (if required by the bank).

Application Process

Getting your Kisan Credit Card is simple and convenient (online or offline). You can submit your details, complete verification, and start accessing credit for your farm or allied activities quickly.

Online

Visit the website of your chosen bank.
Select the Kisan Credit Card option and click on ‘Apply’.
Fill out the online form with personal, farm, and bank details.
Submit the application; an application reference number will be issued.
The bank will verify KCC eligibility and contact the applicant within 3-4 working days.

Offline

Download the application form from the bank’s website or collect it at the branch.
Fill out the form with assistance from the bank representative.
Submit the completed form along with the required documents for verification.

Verification

Banks verify farmer details, land records, and credit eligibility.
Crop, asset, and income verification may be done physically or digitally.

Check Status

Applicants can check their application status at any time.

Track the application using the reference number on the bank’s portal.
Status displays Approved / Pending / Rejected with next steps.

Benefit Disbursal

All approved loans and incentives are transferred directly to the farmer’s bank account. Linking with a zero-balance savings account ensures timely receipt of credit, interest subvention, and prompt repayment incentives.

Kotak811 Zero-Balance Savings Account

Farmers can link their Kotak811 Zero-Balance Savings Account to receive KCC disbursals, interest subvention, and incentives directly. It ensures secure fund transfer, easy tracking, and convenient mobile banking.

Conclusion

So, when we talk about the Kisan Credit Card, we must know that it is a valuable asset for India’s farmers. It provides easy access to:

Agricultural finance
Interest benefits
Credit limits for crop production and allied activities

Farmers can manage their funds efficiently if they link with a zero-balance savings account. They can access incentives and improve financial planning.

This scheme not only supports agricultural growth but also strengthens rural financial inclusion. It is there helping farmers secure livelihoods and improve productivity.

FAQs

1. What is a Kisan Credit Card?

A financial tool providing short-term crop loans, working capital, and allied activity credit to farmers.

2. Who is eligible for KCC?

Farmers engaged in agriculture or allied activities; senior citizens may require a co-borrower.

3. What is the KCC scheme interest rate?

Standard interest is 7% p.a. on short-term credit, with 2% interest subvention and 3% prompt repayment incentive for eligible farmers.

4. What is the maximum Kisan Credit Card limit?

Up to ₹3 lakh per annum; up to ₹2 lakh for animal husbandry or fisheries.

5. How can I apply for a Kisan Credit Card?

Online through the bank’s website or offline at the bank branch with supporting documents.

6. What documents are required for KCC?

Identity proof, address proof, land/lease documents, bank account details, and income proof if required.

7. How long is the KCC valid?

Five years, with renewal based on crop cycles and repayment history.

8. Is collateral required?

Up to ₹1.6 lakh or ₹3 lakh for tied-up limits, hypothecation of crops is sufficient; higher limits may require a mortgage or third-party guarantee.

9. Can senior citizens apply?

Yes, with a co-borrower who is a legal heir.

10. Can I receive KCC funds in a Kotak811 account?

Yes, using a Kotak811 Zero-Balance Savings Account ensures secure, direct receipt of loans and incentives.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.