kisan credit card

Kisan Credit Card: KCC Scheme in India 2020, Apply Online

Banking Credit Card

Kisan Credit Card Scheme was brought forward by Indian banks in August 1998. The model of the KCC scheme was structured by the National Bank for Agriculture and Rural Development (NABARD). This Government of India initiated scheme intends to save the farmers from the clutches money lenders in the unorganized sector who usually charge a very high-interest rate. Under KCC scheme interest rate charged is as low as 2%. In addition to that, the repayment period depends on the harvesting or marketing period of the crop for which the loan was taken. 

What is Kisan Credit Card?

Kisan Credit Card scheme is a Government initiated-scheme that aims to meet the credit requirements of agricultural farmers and from 2019, of fisheries and animal husbandry farmers as well. All commercial banks, Regional Rural Banks, and state co-operative banks offer the KCC scheme in India. This was a much-needed effort to protect the farmers from the high-interest rates charged by unauthorized money lenders. 

Features and Benefits of Kisan Credit Card Scheme

  • Interest Rate: 2% (minimum)
  • Collateral free loans are provided up to INR 1.60 lakh, i.e. collateral is not needed for loans up to INR 1.60 lakhs
  • A simple interest rate will be charged upon prompt payment. Else, compound interest is applicable.
  • The repayment period is not strict. It depends on the harvesting and marketing period of the crop for which you took out the loan.
  • The Kisan Credit Card loan is given so that the farmer can meet the agricultural needs along with the post-harvest requirement.
  • The scheme also assists in the purchase of fertilizers, seeds, and other farming stuff.
  • Insurance Coverage: 
    1. Coverage of up to INR 50,000 against Permanent Disability and Death.
    2. Coverage of up to INR 25,000 against other risks.
  • A loan amount of up to INR 3 lakh is provided to the cardholder
  • Generally, the Kisan Credit Card validity period is for 5 years.
  • The farmers will enjoy a high-interest rate on their savings in the Kisan Credit Card account.
  • Some banks like SBI, provide free ATM cum debit card for all the KCC borrowers.

Top 6 Best Banks Offering Kisan Credit Cards 

Here is a list of best 6 banks offering Kisan credit card (KCC ) with interest rate and, tenure and loan amount comparison

Sl. No. Bank Name KCC Loan Limit Interest Rate Charged (p.a.) Maximum Loan Tenure
1. Axis Bank <= INR 2.50 lakh 8.85%
  • Up to 1 year for cash credit
  • Up to 7 years for term loans
2. Bank of India <= 25% of the farmer’s estimated income (not more than INR 50,000) 4% N/A
3. State Bank of India Kisan Credit Card <= to INR 3 lakhs (as per the cropping pattern and the crop cultivation) 2% (min.) 5 years
4. ICICI Kisan Credit Card As per the bank’s terms and conditions which will be as per the RBI guidelines 9.70% to 12% 5 years
5. HDFC Bank <= INR 3 lakh 9.00% to 16.69% 5 years
6. PNB Kisan Credit Card <= INR 3 lakhs 4% (min.) N/A

Other top banks that offer Kisan credit card scheme:

  • Odisha Gramya Bank
  • Mahabank Kisan Credit Card (Interest Rate: min. 7%)
  • UCO Bank (Interest Rate: 7%)
  • Indian Overseas Bank (Interest Rate: 7%)
  • Bangiya Gramin Vikash Bank

Read More: Best Banks for Saving Accounts in India 2020

Kisan Credit Card (KCC) Interest Rate

The Kisan Credit Card interest rate is 2% offered by SBI Kisan Credit Card. It generally depends on the bank you are taking the loan from. The interest rate charged by most banks lies in the range of 2% to 12% with 4% being the average.

Also, the interest rate on Kisan credit card scheme for prompt payment will become lower and for late payment will be higher than that at the application time. 

For example, if the interest rate at the time of application is 4%, then the interest rate upon prompt payment might be 3%, and that at the time of late payment might be 7%.

The interest rate offered might also depend on the farmer’s credit history, crop cultivated, land of cultivation, etc. 

Do not worry because the RBI keeps a constant check on the maximum KCC interest rate offered by banks. This is mainly because the Kisan Credit Card Yojana was introduced in the first place to get rid of the unusually high-interest rates charged by the unauthorized moneylenders.

Read More: Bank Merger in India 

Kisan Credit Card Limit

The Kisan Credit Card loan limit varies from one bank to another. The KCC interest rate also depends on the bank you take the loan from. For all marginal farmers, it lies in the range of INR 10,000 to INR 50,000. On the other hand, some banks offer loans up to INR 3 lakhs.

For others, it depends on the following factors:

  • Type of crop sown, 
  • The cropping pattern, and the finance required to fund the entire process including the harvesting needs. 
  • Post-harvesting needs along with household consumption needs
  • Funds needed to maintain the crop insurance, Personal Accident Insurance Scheme (PAIS), farm assets, and asset insurance.
  • The loan limit under your KCC Scheme could be increased every year until the 5th year at the rate of 10%.

In addition to the loan to meet your farming needs, the farmer will also receive an accident insurance coverage of INR 50,000 (maximum).

Kisan Credit Card Eligibility Criteria

The Kisan Credit Card eligibility criteria for application are as follows:

  • Farmers who are either individuals/ Joint borrowers of the land they farm in and, are involved in farming or allied activities.
  • Individuals who are owners of the land cum its cultivators.
  • Tenant farmers or Oral lessees and also the Share Croppers of the agricultural land
  • Self Help Groups or Joint Liability Groups that include tenant farmers or sharecroppers
  • The applicant farmers need to be eligible for a production credit of INR 5,000 and more. In that case, they shall be entitled to their respective KCCs.
  • The farmers need to be residing in the operational area of the bank.
  • The farmers who are eligible for short-term credit loans towards crop production or other allied activities and non-farming activities as well.
  • Fishermen and animal husbandry farmers can also avail of Kisan credit card scheme scheme.
  • The applicant’s age should be between 18 to 75 years. If the applicant’s age is above 60 years, then they need to have a co-applicant.

Exclusions of Kisan Credit Card

The following category of people from higher economic status shall not be allowed to avail benefits under the KCC scheme

  1. All Institutional Land Holders.
  2. All the farmer families that belong to one or more of the following categories:
  1. The former and present position holders of constitutional posts.
  2. Former and current Ministers/ State Ministers and former/ present Members of Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former and present Mayors of Municipal Corporations, former and present Chairpersons of District Panchayats.
  3. All retired or serving officers and employees of Central/ State Government Ministries/ Offices/ Departments and its field units like Central or State PSEs and other Attached Offices/ Autonomous Institutions under the Government and regular employees of the Local Bodies.
  4. Superannuated/ Retired pensioners who get a monthly pension of INR 10,000 or more
  5. People who paid Income Tax in the last assessment year.
  6. Professionals such as Doctors, Lawyers, Engineers, Chartered Accountants, and Architects who are registered with Professional bodies and carrying out profession via undertaking practices.

Documents Required to Apply for Kisan Credit Card (KCC)

People who wish to apply for a Kisan Credit Card registration and avail the benefits under the scheme must submit appropriate documents to prove their identity and residing address. The Kisan Credit Card documents required are as follows:

Identity Proof:

Any of the following can be used as identity proof:

  • PAN card
  • Aadhaar Card
  • Driver’s License
  • Passport
  • Voter’s ID
  • Overseas Citizen of India Card
  • Person of Indian Origin Card
  • Job Card issued by the NREGA
  • Letters issued by the UIDAI

Address Proof

  • Aadhaar Card
  • Driver’s License
  • Passport Utility Bill not more than 3 months’ old
  • Ration Card
  • Property Registration Document
  • Person of Indian Origin Card
  • Job card issued by NREGA
  • Bank Account Statement

Other documents

  • Passport size photographs
  • The documents of the land where the agricultural farming will be done.
  • Any other document needed or requested by the bank.

How to Apply for Kisan Credit Card (KCC)?

You can apply for KCC in the following two ways:

KCC Online application

If farmers or other eligible candidates wish to apply for Kisan Credit Card online, then they can do that in the following steps:

  • Visit the bank’s website from where you wish to avail of a KCC. Then, go to the website’s KCC section.
  • Download and print the KCC application form
  • Duly fill-in the Kisan Credit Card form
  • Submit the filled up application form along with all the necessary information at the nearest Bank branch
  • Your loan officer will share the necessary Kisan Credit Card details regarding the application to you
  • The card will be dispatched once your loan amount is sanctioned.
  • You can start using your KCC once received.

KCC Offline application via Branch Visit

If the farmers wanting to avail of the KCC scheme do not wish to go through the online proceedings, then:

  • They need to choose a bank of their choice. 
  • They need to get in touch with a bank official of the nearest branch. 
  • Also, the farmer’s residing place should fall within the operational area of the bank. 
  • The bank official will explain the entire application procedure to you and also guide you through the procedure. 
  • The loan officer will give you the necessary details and then they will process your application.
  • Once, the application and verification procedure is complete, you will receive your KCC and can start using it right away.

PM Kisan Samman Nidhi Yojana

The Government has merged the Kisan Credit Card (KCC) Scheme along with the Kisan Samman Nidhi Scheme. This is being done after the 2020 Budget to make institutional credit much more accessible to farmers. 

If you are a beneficiary of the Kisan Samman Nidhi Scheme, then you can avail of a KCC as well. And you can avail loans for agricultural purposes under your KCC this way wherein you will be charged a concessional rate of 4% only.

Application for KCC under PM Kisan Samman Nidhi Scheme

To apply for the Kisan Credit Card scheme under the PM Kisan Samman Nidhi Scheme, you need to follow the given steps:

  • The farmer needs to fill up a one-page form that is available on all commercial banks’ websites. You’ll also find this form published in all leading newspapers.
  • You need to fill up basic information such as land records and the crop sown.
  • This form can also be filed and submitted at the Common Services Centers (CSC). They are also responsible when it comes to transferring the filled up forms to the respective bank branches.

Kisan Credit Card Customer Care

The KCC scheme also has a Kisan Credit Card toll free number and email address through which you could convey your queries or grievances. You can also call the number to check your balance.

Kisan Credit Card Customer Care Number: 155261 / 1800115526 or 0120-6025109 

Kisan Credit Card Customer Care Email: pmkisan-ict@gov.in

Kisan Credit Card (KCC) FAQs

1.Does the bank demand a security/collateral to sanction your loan?

Ans. Banks do not demand any security or collateral if the loan amount is less than INR 1.50 lakhs. If the loan amount exceeds that limit, then the banks can ask for any security that seems fit. Collateral could be anything from handing over the crops for which you took the loan in the first place, other assets such as tractors, trolleys, and so on.

2. How to check the Kisan Credit Card account balance?

Ans. You could contact the Kisan Credit Card Customer Care Number of the PSB from where you took the KCC. Otherwise, visit the bank branch of the same to know your account balance

3.Does KCC offer a revolving credit facility?

Ans. Yes, it does. KCC cards provide a revolving cash facility for an unlimited number of withdrawals and repayments, provided these are done within the given credit limit.

4.What is the validity period of a Kisan Credit Card?

Ans. The KCC is valid for 5 years. But, the Kisan Credit Card Scheme validity period generally depends on what exact farming purpose/ activity you took the loan for.

5.Is Kisan Credit Card loan a type of Crop Loan?

Ans. Yes, KCC is a type of crop loan as per the definition of crop loans, i.e. a type of loan that any farmer can seek to meet their agricultural funding requirements. But, you can use KCC for a diverse range of related purposes and not just for agricultural capital requirements.

6.How is the repayment tenure of the KCC loan decided?

Ans. The repayment tenure of a KCC loan is decided according to the loan amount you took, the crop for which you took the loan, the land where the cultivation was done, the crops marketing and harvesting season, and so on. Hence, the repayment time is not fixed and you have to start repaying after the harvesting and marketing season of the crop.

7.Who can apply for a KCC?

Ans. The following people can apply for a KCC credit card Scheme:

  • Farmers including individual farmers, joint cultivators, owners, etc. 
  • Tenant farmers, sharecroppers, oral lessees, etc.
  • Joint liability groups or SHGs
  • People are involved in animal husbandry or fisheries.

8.What is the age requirement for the KCC application?

Ans. The applicant needs to be at least 18 years of age or at most 75 years of age to apply for the KCC scheme. If the applicant is more than 60 years of age, then they need to have a co-applicant.

9.How to apply for KCC?

Ans. To apply for the KCC credit card, you can visit the bank website or the bank branch. You can also visit the NABARD office to apply for KCC. 

10.Can the KCC card be used to pay for a farmer’s household needs?

Ans. Yes, the KCC cardholders can use these cards to pay for their household needs, and the maximum amount that can be used is 10% of the loan.

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