Kisan Credit Card (KCC)

The Kisan Credit Card (KCC) scheme, launched in 1998 and significantly revamped in recent years, provides farmers with short-term credit for agricultural needs at a subsidised interest rate. The effective interest rate under the interest subvention scheme is just 4% per annum for loans up to ₹3 lakh — one of the lowest credit rates available to any borrower category in India. This is achieved through a 3% interest subvention provided by the government on the standard bank lending rate.

The KCC works as a revolving credit facility — the farmer can draw funds, repay, and draw again within the credit limit over a 5-year period. This flexibility is critical for agriculture, where cash needs are seasonal. The credit limit is calculated based on the cost of cultivation for the crops grown, post-harvest expenses, maintenance of agricultural assets, and consumption requirements for the household.

In 2020, the KCC scheme was extended to cover fisheries and animal husbandry farmers as well — not just crop farmers. This expansion means aquaculture farmers, inland fishermen, and dairy/poultry farmers can now access KCC credit for their working capital needs. Apply at any cooperative bank, regional rural bank, or commercial bank that has a lending relationship with farmers in your area. Our editorial team verified current interest rates and eligibility criteria against RBI and NABARD circulars, July 2026.