KISAN
CREDIT CARD.
Empowering the agricultural workforce with seamless, affordable credit. Bridge the gap between sowing and harvesting with India’s most trusted farming credit line.
Understanding the
KCC Credit Line.
The Kisan Credit Card is not a standard loan; it is a revolving credit facility. The limit is determined based on the 'Scale of Finance' for the crop as decided by the District Level Technical Committee (DLTC).
The card remains valid for 5 years, with a mandatory annual review. The credit limit is automatically increased by 10% every year for the first five years to account for inflation and rising cost of cultivation.
Consumption Limit
10% of the short-term limit is allocated for household and consumption requirements of the farmer family.
Maintenance Limit
20% of the limit is specifically for post-harvest expenses and maintenance of farm assets like tractors or pump sets.
Eligibility & Allied Inclusion
Standard Agriculture
Includes all farmers—individual or joint borrowers who are owner-cultivators. This covers sharecroppers, tenant farmers, and oral lessees who can prove their cultivation status through local revenue authorities.
Animal Husbandry
Extended to farmers involved in poultry, dairy (owning/renting sheds), and small ruminants like sheep or goats. These individuals are eligible for a working capital limit up to ₹2 Lakh within the overall KCC framework.
Fisheries Sectors
Inland fisheries and aquaculture farmers owning or leasing a water body (tanks, ponds, open water). This includes owners of fishing vessels and those involved in marine fishing in estuaries.
Security &
Collateral.
Legal frameworks regarding the backing of the agricultural credit line.
Collateral-Free Limits
As per RBI mandates, no collateral security is required for KCC limits up to **₹1.60 Lakh**. This is designed to protect small-holder assets. For tie-up marketing arrangements, this threshold is extended to **₹3.00 Lakh**.
Hypothecation of Crops
The primary security for the bank is the hypothecation of standing crops. In essence, the credit is secured against the future harvest rather than the physical land, ensuring farmers retain ownership of their primary asset during the credit cycle.
Mortgage Requirements
For limits exceeding the ₹1.60 Lakh mark, banks may require a mortgage of land or other non-agricultural securities, governed by the State Agricultural Credit Operations Acts.
Repayment & Renewal
The KCC follows the natural 'Crop Cycle'—money is repaid only when the harvest is sold.
Harvest-Linked Repayment
Banks fix the repayment schedule based on the anticipated harvesting and marketing period. This eliminates the burden of monthly EMIs, aligning the credit outflow with the farmer's actual income liquidity.
5-Year Validity & Review
While the card is valid for 5 years, it undergoes an annual review. Satisfactory performance allows for a **10% compounding increase** in the credit limit every year to counteract the rising costs of seeds and fuel.
Allied Sector
Working Capital.
Extended credit facilities for Dairy, Poultry, and Fisheries entrepreneurs.
Dairy Operations
Covers the recurring cost of animal feed, veterinary services, labor, and water/electricity charges. The limit is determined by the total milch animals currently reared or planned.
Poultry & Small Ruminants
Working capital for day-old chicks, concentrated feed, medicines, and routine shed maintenance. Includes goats/sheep rearing under the same allied credit umbrella.
Fisheries & Aquaculture
Dedicated funds for fish seed (fingerlings), lime, fertilizers, and harvesting. For marine fishing, the credit covers fuel costs and ice for cold-chain storage on vessels.
Subsidized Interest
Effective rates as low as 4% with timely repayment subvention.
Built-in Insurance
Includes crop insurance and personal accident coverage for the holder.
Smart Card ATM
Withdraw cash at any ATM or purchase seeds/fertilizers at POS terminals.
Flexible Tenure
Repayment based on the harvesting and marketing period of your crop.
Financial Limits
The KCC limit is not just a random number. It is scientifically calculated to cover your total farm needs.
- Crop production expenses (Cost of Cultivation)
- Post-harvest / Household requirements
- Farm asset maintenance & insurance
Who can hold
a Kisan Card?
Individual Land Owners +
All farmers who are individuals/joint borrower owner-cultivators.
Tenant & Oral Lessees +
Tenant farmers, oral lessees, and sharecroppers are also eligible with proper documentation.
Allied Sectors (New Update) +
Now extended to Animal Husbandry, Dairy, and Fisheries farmers (up to ₹2 Lakh limit).
Why KCC Beats
Private Loans.
A clear comparison of interest benefits provided by the Government of India.
| Feature | Standard Bank Loan | KCC Benefit |
|---|---|---|
| Base Interest Rate | 9.00% - 12.00% | 7.00% (Base) |
| Prompt Repayment Bonus | None | -3.00% (Subvention) |
| Collateral Requirement | Mandatory | Waived up to ₹1.6 Lakh |
| Final Interest Rate | ~10.5% Average | 4.00% Only |