Kisan Credit Card Scheme: What Is It, How To Apply, Benefits And More

The Union government has been rolling out several schemes to support the farmers. The schemes launched by the government are aimed at increasing financial inclusion for farmers while providing better access to credit instruments. The Kisan Credit Card (KCC) scheme is one of the key programs of the central government to strengthen agricultural financing.

In Budget 2025, Finance Minister Nirmala Sitharaman increased the Kisan Credit Card limit from Rs 3 lakh to Rs 5 lakh to enhance credit access for farmers while offering higher financial support for agricultural needs.

The Kisan Credit Card (KCC) scheme has remained crucial in supporting farmers for their agricultural needs, such as buying seeds and equipment. According to the government data, by December 31, 2024, claims worth Rs 1,08,336.78 crore were processed through the Kisan Rin Portal (KRP). More than 5.9 crore farmers are getting the benefits of short-term agricultural loans at concessional interest rates.

Here are the key details about the KCC scheme and how to apply for it.

The Kisan Credit Card scheme was launched in 1998 to make credit more accessible to farmers. Under the scheme, the central government provides an interest subvention of 2% and a Prompt Repayment Incentive of 3% to the farmers, making credit available at a subsidised rate of 4% per annum.

In 2004, the scheme was extended to provide credit for allied and non-farm activities. Under the Modified Interest Subvention Scheme (MISS), loans of up to Rs 3 lakh are offered at 7% interest for short-term agriculture loans up to Rs 3 lakh.

In 2012, a working group under the chairmanship of Shri TM Bhasin, CMD, Indian Bank, revised the scheme guidelines to facilitate the issue of Electronic Kisan Credit Cards.

You can apply for a Kisan Credit Card via both online and offline modes. We will go through the steps for each below:

Online 

• Go to the website of the bank from which you want the Kisan Credit Card.

• Visit the section for getting a KCC.

• Click on “Apply” to be redirected to the application page.

• You will be presented with a form where you need to fill in all the required details.

• You should receive an application reference number via SMS and/or email. The bank will contact you regarding the application in 3-4 days. 

Note: The steps mentioned above are generic. The exact procedure may vary across bank websites. 

Offline

• Visit the nearest branch of the bank from which you want the KCC.

• Fill up the application form, submit all necessary documents, and follow the bank officials’ instructions to complete your application.

• Farmers who are owner cultivators. Both individual and joint borrowers can apply.

• Tenant farmers, oral lessees and share croppers.

• Self Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers, including share croppers and tenant farmers, among others.

The following are the advantages of Kisan Credit Cards:

• It helps farmers meet the short-term needs for all agricultural activities.

• The programme provides access to funds for medium- to long-duration crops, such as horticultural flowers, aromatic plants, plantation crops, and medicinal plants, among others.

• The farmers can also meet post-harvest expenses through short-term loans under the scheme.