Kisan Credit Card 2025: A Strategic Banker’s Perspective

Kisan Credit Card (KCC) scheme:

The Kisan Credit Card (KCC) scheme is one of India’s most impactful initiatives to empower farmers with easy and affordable access to agricultural credit. Introduced by the Government of India in 1998 in collaboration with NABARD, the KCC scheme helps farmers meet their cultivation, post-harvest, and allied activity expenses without depending on informal moneylenders.

As an experienced banker, I have witnessed how the Kisan Credit Card has transformed the financial inclusion landscape in rural India. This blog aims to spread awareness about the KCC scheme, its eligibility, benefits, loan limit, interest rate, interest subvention, and repayment process — and how it truly helps farmers.

What is the Kisan Credit Card Scheme?

The Kisan Credit Card scheme was launched to provide timely credit to farmers for meeting their cultivation and allied needs. Over the years, the scope of the scheme has expanded to include dairy, poultry, fisheries, horticulture, goat rearing, and other allied sectors. The key objective is to offer farmers a revolving credit facility with flexible withdrawal and repayment options — ensuring uninterrupted access to funds during the cropping cycle.

Eligibility Criteria for Kisan Credit Card (KCC)

Any farmer engaged in agriculture or allied activities can apply for a Kisan Credit Card. The eligibility includes: Individual farmers who are owner-cultivators. Tenant farmers, sharecroppers, and oral lessees. Joint Liability Groups (JLGs) and Self-Help Groups (SHGs) are involved in farming. Farmers engaged in allied activities like dairy, fisheries, poultry, goatery, and horticulture. Banks assess the applicant’s landholding, cropping pattern, and repayment capacity before sanctioning the Kisan Credit Card limit.

Kisan Credit Card Loan Limit

The KCC loan limit depends on the cost of cultivation, post-harvest expenses, and household consumption needs.The limit is typically sanctioned for five years, with an annual increase of 10% to cover cost escalation. For short-term crop loans, the limit can go up to ₹3 lakh. For investment and allied activities, the limit can extend up to ₹5 lakh or more, depending on the project. For crop loans, the credit limit is determined based on the scale of finance fixed by the District Level Technical Committee (DLTC). Banks issue a Rupay Kisan Credit Card, enabling farmers to withdraw cash, purchase inputs, and carry out digital transactions.

Kisan Credit Card Interest Rate 2025

The Kisan Credit Card interest rate is among the lowest in the agricultural credit system, thanks to the interest subvention scheme offered by the Government of India.
The base interest rate is generally 7% to 9% per annum, depending on the bank.
Farmers who repay their dues on time are eligible for an interest subvention of 2% and an additional 3% for prompt repayment.
Hence, the effective interest rate for farmers becomes 4% per annum for timely repayment.
This attractive rate makes the KCC a crucial tool for farmers seeking affordable credit.

Interest Subvention under the Kisan Credit Card Scheme

The Interest Subvention Scheme (ISS) under the Kisan Credit Card is designed to encourage prompt repayment and reduce farmers’ interest burden.
Short-term crop loans up to ₹3 lakh are eligible for 2% interest subvention.
Prompt-paying farmers receive an additional 3% incentive, making the effective interest rate just 4%.
The scheme is implemented by the Department of Agriculture & Farmers Welfare (DA&FW) in coordination with banks and NABARD.
This initiative promotes credit discipline and supports the financial stability of farmers.

Kisan Credit Card Repayment Period

The repayment schedule is aligned with the crop harvesting period and the nature of the activity. Crop loans: Repayment is due after the harvest, generally within 12 months.Investment loans (like dairy, fisheries, or farm machinery): Repayment is structured in half-yearly or annual instalments. For long-gestation projects, banks may provide a moratorium period before regular repayment starts. Timely repayment not only ensures eligibility for interest subvention but also builds the farmer’s creditworthiness for future loans.

Development of the Kisan Credit Card Scheme

Since its launch, the KCC scheme has undergone significant digital and structural improvements. Farmers can now apply for Kisan Credit Cards online through banks or Common Service Centres (CSCs). The Digital KCC Campaign launched by the Government has streamlined processing and reduced paperwork. KCC coverage has expanded to animal husbandry, dairy, and fisheries, strengthening rural livelihoods.

According to recent government data, over 7 crore Kisan Credit Cards have been issued across India — a testament to its success in enhancing rural credit flow.

Benefits of the Kisan Credit Card Scheme

The Kisan Credit Card provides multiple benefits to farmers, promoting financial inclusion and security:

Easy access to credit for cultivation and allied activities.
Low interest rates with interest subvention benefits.
Flexible repayment options and revolving credit facility.
Insurance coverage under Pradhan Mantri Fasal Bima Yojana (PMFBY).
Digital convenience through Rupay KCC debit cards.
Financial inclusion for tenant farmers and SHGs through JLG model.
These features make KCC an indispensable financial tool for small and marginal farmers.

How to Apply for a Kisan Credit Card

Farmers can apply for a Kisan Credit Card through any public sector bank, regional rural bank, or cooperative bank. The process involves:

Fill out the KCC application form available at bank branches or online.
Submit documents like land records, ID proof, address proof, and crop details.
The bank assesses the proposal and sanctions the credit limit based on the cropping pattern and repayment capacity.
After approval, the Rupay Kisan Credit Card is issued to the farmer for withdrawals and transactions.

How the Kisan Credit Card Helps Farmers

The Kisan Credit Card scheme has transformed the way farmers access credit.

Reduces dependence on moneylenders.
Encourages timely repayment through incentives.
Supports agricultural diversification and allied activities.
Strengthens rural banking and financial inclusion.
Promotes self-reliance among farming communities.
By bridging the credit gap, the KCC empowers farmers to invest in better seeds, technology, and sustainable farming practices.

Conclusion

The Kisan Credit Card scheme 2025 continues to be a lifeline for India’s farmers, ensuring timely and affordable credit for cultivation and allied activities. With digital banking and simplified processes, farmers can now access KCC benefits more easily than ever before.

As a banking professional and agriculture graduate, I have seen how a single KCC can change a farmer’s life — giving them confidence, security, and financial stability. Let’s continue to spread awareness about the Kisan Credit Card so every farmer can reap its benefits and contribute to India’s agricultural growth.