Kisan Credit Card (KCC): Cheap loan up to ₹ 2 lakh without guarantee, know the rules, eligibility and complete application process.

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To save the farmers of the country from the trap of loans with high interest rates from moneylenders and to meet the expenses related to farming, the Central Government has Kisan Credit Card (KCC) The scheme has emerged as the biggest financial support. Many farmers often have the misconception that to get a loan from the bank, they have to mortgage their land or do lengthy paperwork, whereas the reality is that under KCC, loans worth lakhs of rupees are easily approved even without any guarantee (collateral-free).

Under the rules set by the Reserve Bank of India (RBI) and the Government of India, loans up to ₹ 2 lakh are now given without any guarantee. At the same time, the total limit of crop loan has been increased to ₹ 5 lakh under the Revised Interest Subvention Scheme (MISS).

The biggest feature of taking a loan on Kisan Credit Card is its concessional interest rates and flexibility:

  • Collateral-Free Limit: Loans up to ₹ 2,00,000 are given to farmers without mortgaging any land documents or without any guarantor. (In some banks this limit goes up to ₹ 3 lakh if ​​there is a tie-up arrangement).

  • General Interest Rate: The general base rate on agricultural loans is fixed at 7% per annum.

  • 4% effective rate on timely repayment: ‘Prompt Repayment Incentive’ of 3% is given by the Central Government (discount on timely repayment). If the farmer repays his dues on time after harvesting and selling the crop, the effective interest rate reduces to just Rs. 4% per annum Stays here.

  • Card Validity: KCC card is valid for a period of 5 years. There is also a provision for increasing the notional limit by 10% every year.

KCC is not limited to big landowners only, but small and marginal farmers as well as those involved in animal husbandry and fisheries are also eligible:

  1. Farmers with own land: Owners of cultivable land individually or jointly.

  2. Shareholder and tenant farmers: Oral lessees, sharecroppers and tenants (on the basis of valid contract or declaration).

  3. Self Help Groups (SHG) and JLG: Joint liability group of farmers or sharecroppers.

  4. related field: Farmers involved in dairy, goat rearing, poultry rearing, pig rearing and fish farming.

  5. PM-Kisan Beneficiaries: If you are receiving installments of ‘PM-Kisan Samman Nidhi’, you can get KCC made on priority basis by filling the single-page form.

  6. Age Limit: The minimum age of the applicant should be 18 years and maximum 75 years (a legal heir/co-applicant is required in cases above 60 years of age).

Minimum documents required to get KCC made:

  • Duly filled KCC application form.

  • Identity Proof: Aadhar Card, Voter ID, PAN Card or Driving License.

  • Address Proof: Aadhar Card, Electricity Bill or Ration Card.

  • Land Records: Certified copy of Khatauni/Khasra, Land Ownership Certificate (LPC).

  • Current crop details: Details of crop sown in the field and acreage.

  • Passport size photograph (2 copies).

  • Bank account details (photocopy of passbook).

Farmers can apply for KCC both online and offline as per their convenience:

Method 1: Online Application through Jan Samarth Portal/Bank App (Fastest)

  1. Official Loan Portal of Central Government Jan Samarth Portal Go to.

  2. Select the ‘Agri Loan / Kisan Credit Card’ option and check your basic eligibility.

  3. Complete the e-KYC process by entering the Aadhaar number.

  4. Enter your land and crop area and select the respective bank branch (like SBI, PNB, BoB).

  5. If you are an SBI customer, you can apply for digital KCC directly from home through ‘YONO Krishi’ app.

Method 2: Through the nearest Common Service Center (CSC)

If you are not able to apply online yourself, then visit the nearest CSC (Public Service Center) of your village. There the VLE will register the KCC application on the PM-Kisan portal through your Aadhar card and Khatauni.

Method 3: Offline application by visiting bank branch

  1. Visit your nearest rural bank (RRB), co-operative bank or commercial bank branch where you have a savings account.

  2. Get ‘KCC Application Form’ from the Agriculture Loan Counter.

  3. Fill in the form with details of your land, crop to be sown and loan amount required.

  4. Submit to the Branch Manager or Field Officer by attaching Aadhaar, PAN, Khatauni and 2 photographs.

  5. After verification by the bank officer, your Kisan Credit Card is approved and issued within 7 to 14 working days.

  • ATM and RuPay Card: KCC holders are issued RuPay Kisan Card, from which they can withdraw money from any ATM or swipe machine while purchasing fertilizers and seeds as per requirement.

  • Interest only on funds utilized: If your loan limit is sanctioned for ₹2 lakh and you have withdrawn only ₹50,000, then interest will be charged only on the ₹50,000 withdrawn and not on the entire limit.

  • Security cover of crop insurance: Loans related to KCC are automatically covered under the Pradhan Mantri Fasal Bima Yojana (PMFBY), due to which the loss of crops in case of drought, flood or natural disaster is compensated by the insurance company.

  • Accident Insurance Cover: Cardholders also enjoy Personal Accident Insurance (PAI) up to ₹50,000.

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