Kisan Credit Card

Full form: KCC

Loans & Credit

Kisan Credit Card (KCC) provides agricultural and allied activity credit to farmers at subsidised interest rates (7% with 3% government subvention = effectively 4% for timely repayment). It is India's primary instrument for formal agricultural credit, replacing moneylenders.

In detail

KCC features:nInterest: 7% per annum base. Government subvention 3% for timely repayment = 4% effectivenCredit limit: based on cultivated area, crop type, and scale of financenFlexible: withdraw and repay multiple times (like OD facility)nRenewable: annually (with crop cycles)nCoverage: crop production + post-harvest + farm maintenance + consumption needsnPersonal accident insurance cover includednnDocument required: land records (khasra, khatauni), ID proof, address proofnnFor non-farmers: KCC-type schemes extended to fisheries (Fisheries KCC) and animal husbandry.

Formula

KCC credit limit = Scale of finance x Cultivated area + Post-harvest + Maintenance + 10% contingencynScale of finance set by District Level Technical Committee (DLTC)

Real-life example

🇮🇳 India example

Ram Prasad (3 acres wheat farmer) gets KCC: scale of finance Rs 40K/acre x 3 acres + Rs 20K post-harvest = Rs 1.4L KCC limit. He withdraws Rs 1L for seeds and fertilisers in October. Repays Rs 1.1L (with 4% interest for 6 months) in April after harvest. Limit restored. No visits to moneylender at 36% interest.

Frequently asked questions

Can urban Indians benefit from KCC? ▼

No -- KCC is specifically for farmers, fishermen, and animal husbandry workers. Urban equivalent: regular personal loan or OD against FD. For rural non-farmers: MUDRA loan (business credit) or SHG-linked credit. KCC remains one of India's most successful agricultural finance schemes.