8 min readKisan Credit Card (KCC) is a revolving farm credit card from banks. Under the central interest subvention scheme, loans up to ₹3 lakh carry a 7% base rate, which falls to about 4% if you repay on time. Owner farmers, tenants, sharecroppers and groups can apply at a bank or online.
What is the Kisan Credit Card scheme?
The Kisan Credit Card (KCC) gives farmers quick, low-cost credit for crop needs so they do not have to depend on moneylenders. It works like a revolving account: you draw money when you need seed, fertilizer or pesticide, and repay after harvest, and the limit becomes available again. The card is usually issued as an ATM-cum-debit card, and the limit is reviewed every few years.
Under the 2026 Reserve Bank of India directions, KCC is offered by commercial banks, regional rural banks and cooperative banks. It covers short-term crop loans and, in many cases, long-term loans for farm assets and allied work such as dairy, fisheries, poultry and beekeeping.
KCC benefits at a glance
| Benefit | What it means for you |
|---|---|
| Low interest | Base rate 7% on loans up to ₹3 lakh under the interest subvention scheme |
| Prompt repayment reward | An extra 3% discount if you repay on time, bringing the effective rate to about 4% |
| Flexible withdrawal | Draw money in parts, repay after harvest, limit renews |
| Allied activities | Dairy, fisheries, poultry and beekeeping are covered, with a separate limit for animal husbandry and fisheries |
| Insurance | Crop insurance such as PM Fasal Bima Yojana can be linked with the loan |
| Collateral-free amount | Collateral-free loans are reported up to ₹2 lakh; check with your bank |
What is the KCC interest rate in 2026?
This is the part most blogs get wrong, so read carefully. The Union Cabinet approved continuing the Modified Interest Subvention Scheme for 2025-26 with ₹15,640 crore. Under it, banks lend short-term crop loans up to ₹3 lakh at 7% a year, and farmers who repay on time get an extra 3% incentive, so they effectively pay about 4%. The 1.5% subvention is paid to the bank, not directly to you.
Two things you must verify with your bank before you apply:
- The ₹5 lakh question. The Union Budget 2025-26 announced raising the KCC loan limit under this scheme from ₹3 lakh to ₹5 lakh. Later renewal reports still quote ₹3 lakh, so check whether the higher limit is live at your bank.
- 2026-27 continuation. We could not confirm a separate 2026-27 Cabinet decision in published sources at the time of writing. Ask your branch for its current rate sheet.
Loans above ₹3 lakh are generally at the bank's own rate, so the rate depends on the bank. Loans taken only for animal husbandry or fisheries get the subvention up to ₹2 lakh.
Who is eligible for a Kisan Credit Card?
- Owner cultivators who farm their own land, individually or jointly.
- Tenant farmers, oral lessees and sharecroppers.
- Self-help groups (SHGs) and Joint Liability Groups (JLGs) of farmers.
- Farmers doing dairy, fisheries, poultry or beekeeping can also get KCC for those activities.
- Your Aadhaar must be shared with the bank, because the interest subsidy depends on it.
Documents required for KCC
- Filled application form with your personal, land and crop details.
- Identity proof (Aadhaar is needed; voter ID or PAN can support).
- Address proof.
- Land ownership papers, or tenancy / lease papers if you are a tenant.
- Recent passport size photographs.
- Bank account details. Some banks ask for a no-dues certificate.
Banks differ slightly in what they ask. Carry originals plus one photocopy set.
How to apply for a Kisan Credit Card (step by step)
- Pick your bank. Your own savings bank, a regional rural bank or your cooperative bank. Having an account and Aadhaar link already helps.
- Get the form from the branch, or download or fill it on the bank's website or app if online application is offered.
- Submit documents: ID, address proof, land papers and photos.
- Bank verification. The bank checks your land records, crop pattern and past repayment.
- Limit decision. The limit is set on your crop's Scale of Finance, plus allowances for post-harvest, household and maintenance needs.
- Receive the card and a passbook. Start using the limit for inputs.
Many people search for 'kisan credit card online apply'. Online forms exist on several bank sites, but most banks still complete verification at the branch, so plan one visit.
How to use KCC money wisely
Use KCC for seed, fertilizer, crop protection, irrigation and labour, not for personal spending, because you must repay by the harvest cycle to keep the 4% rate. Buy inputs that raise yield: balanced nutrition from our NPK fertilizer range, disease protection from fungicides, and pest control from insecticides. Always match the product to the crop problem; if unsure, ask in the Katyayani Krishi Direct app, which offers a free video call with a farming expert.
KCC repayment: how to keep the interest low
- Repay the loan by its due date (usually after harvest). Late repayment can cost you the 3% incentive.
- Keep records of every withdrawal and bill.
- Insure your crop so a bad season does not push you into default.
- Check your statement every few months for wrong charges.
Other schemes that work with KCC
KCC is one piece of farm finance. Read about the cash support in our PM-Kisan installment status guide, the full list of agriculture subsidy schemes in India, and women-focused credit in SHG loan for women farmers. Starting a farm business? See PMEGP loan for agriculture business and the FPO credit guarantee scheme. For official details, use the RBI website, PM-Kisan portal and Ministry of Agriculture.
Get expert help and the right inputs on your phone
Two Katyayani apps help at different stages. Farmers can use the Katyayani Krishi Direct app: it has a free agri video call with a farming expert, a crop calendar, order tracking, and works in 9 languages (Hindi, English, Marathi, Kannada, Telugu, Tamil, Malayalam, Bengali, Odia). Retailers and dealers can use the Katyayani Partner (Retailer) app to see product details, place orders, track delivery and apply for credit with a simple KYC.
Conclusion
A Kisan Credit Card is the cheapest and simplest way for most farmers to fund each crop season, especially if you repay on time and keep the effective rate near 4%. Keep your Aadhaar linked, land papers ready and your repayment date in your calendar. Before you apply, ask your branch two things: the current rate sheet and whether the ₹5 lakh limit is live. Then put the money into inputs that raise yield, and insure the crop.
Why trust this guide
Written by Team Katyayani, Editorial Team at Katyayani Organics. Cross-checked against published research and university extension programs.



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