By FinMandi Research Team·June 2026·✓ Updated June 2026
🔍 Reviewed by FinMandi Research Team·✓ Sourced from official government portals·✓ Updated June 2026
⚡ KCC at a Glance
Effective interest rate: 4% p.a. (7% minus 3% government subvention for timely repayers)
Maximum loan: Rs 3 lakh under interest subvention scheme
Who can apply: All farmers — owner cultivators, tenant farmers, sharecroppers, allied activity farmers
Collateral: Not required for loans up to Rs 1.6 lakh
Apply via: Any bank branch, PM Kisan portal or Jan Samarth portal
Also covers: Post-harvest expenses, allied activities (dairy, fishery, poultry)
What is Kisan Credit Card?
Kisan Credit Card (KCC) is a revolving credit facility provided to farmers by banks. It works like a crop-linked overdraft — farmers can withdraw money as needed during the crop season and repay after harvest. The scheme is backed by the Government of India with interest subvention, making it the lowest-cost formal credit available to Indian farmers.
KCC Interest Rate 2026 — How the 4% Works
Component
Rate
Bank lending rate
7% p.a.
Government interest subvention
minus 3% p.a.
Effective rate for timely repayer
4% p.a.
Prompt repayment incentive (additional)
Additional 3% — total subvention 6% (effective rate 1%)
💡 If you repay your KCC within the due date (typically within 12 months of disbursement), you qualify for an additional 3% prompt repayment incentive. This makes the effective rate as low as 1% p.a. for disciplined farmers.
Who is Eligible for Kisan Credit Card?
Owner cultivators (farmers who own agricultural land)
Tenant farmers and oral lessees (farmers who rent or sharecrop land)
Maintenance of farm assets and working capital for allied activities
Investment credit for allied and non-farm activities
Documents Required for KCC
Aadhaar card
PAN card
Land records (Khasra/Khatauni/7-12 extract)
Passport-size photograph
Bank account linked to Aadhaar
Proof of crops to be grown (crop pattern declaration)
⚠️ Land records are the most critical document. Ensure your land records are updated and in your name (or show your tenancy rights). Outdated land records are the most common reason for KCC rejection.
How to Apply for KCC — Step by Step
1
Option A: Apply via Jan Samarth portalVisit jansamarth.in → Agriculture category → Kisan Credit Card. Complete digital application with Aadhaar eKYC.
2
Option B: Apply via PM Kisan portalVisit pmkisan.gov.in → Farmer Corner → KCC Application. Linked to PM-KISAN beneficiary data for faster processing.
3
Option C: Visit bank branch directlyVisit SBI, Bank of Baroda, PNB, cooperative bank or regional rural bank with land records and Aadhaar.
4
Bank assesses credit limitBank calculates your credit limit based on land holding, crop type and scale of finance per acre set by district-level technical committee.
5
KCC issued as RuPay cardApproved KCC is issued as a RuPay debit card. You can withdraw from ATM, pay at shops or get cash at bank branch.
Which Banks Issue KCC?
Public Sector Banks: SBI, Bank of Baroda, PNB, Canara Bank, Union Bank — most active KCC issuers
Regional Rural Banks (RRBs): Best option in rural areas — Gramin Banks backed by PSU banks
Cooperative Banks: Primary Agricultural Credit Societies (PACS) — close to farmers, may have faster processing
Private Banks: HDFC, ICICI also issue KCC but less common in rural areas
The KCC credit limit is typically set by the bank based on your land holding and the scale of finance per acre set by the District Level Technical Committee. For interest subvention benefits (4% effective rate), the loan must be up to Rs 3 lakh. Above Rs 3 lakh, the full 7% rate applies without government subvention.
No collateral is required for KCC loans up to Rs 1.6 lakh. Above Rs 1.6 lakh, banks may require hypothecation of crops and in some cases land or other assets. However, many PSU banks and cooperative banks are flexible for established farmer customers.
Yes. You can apply for KCC digitally via the Jan Samarth portal (jansamarth.in) or PM Kisan portal (pmkisan.gov.in). The digital application goes to the bank which then processes it. You may need to visit the branch once for biometric verification and card collection.
If you miss the repayment date (typically 12 months from disbursement), you lose the 3% government interest subvention and the rate reverts to 7% p.a. Further delays may result in the account being classified as NPA. Contact your bank immediately if you face repayment difficulty — most banks have restructuring options for genuine crop failure cases.
⚠️ Disclaimer: All scheme details are based on publicly available information from official government portals as of June 2026. Eligibility criteria, subsidy amounts and benefit levels may change. FinMandi is an independent information platform and is not affiliated with the Government of India or any bank. Always verify current details on official portals before applying.