The Kisan Credit Card (KCC) scheme was first started by Indian public sector banks in 1998 on the recommendations and guidelines of the National Bank for Agriculture and Rural Development (NABARD). Under this scheme, Kisan Credit Cards were provided to farmers based on their holdings. Farmers could use these credit cards in order to further their agriculture activities and goals such as the purchase of seeds, fertilizers, pesticides, etc. They could even withdraw cash if required. This scheme has seen many extensions and modifications since its inception. In 2012, farmers were issued for the first time Electronic Kisan Credit Cards. This Kisan Credit Card scheme is carried out by various Commercial Banks, RRBs, Small Finance Banks, and Cooperatives.


What is the Purpose of the Kisan Credit Card Scheme?

  • To meet the short-term credit requirements for the cultivation of various crops.
  • To cover the expenses post harvesting of crops.
  • To make sure that farmer households have enough resources to meet their needs.
  • Investment credit requirement for agriculture and allied activities like farm machinery (long-term objective).

Repayment of Credit Under the KCC Scheme

  • The repayment period may be fixed by banks as per the anticipated harvesting and marketing period for the crops for which the loan has been granted.
  • The loan component is typically repayable within 5 years, depending on the activity or investment type, in accordance with applicable investment credit guidelines.
  • Financing banks may, at their discretion, provide longer repayment periods for term loans depending on the type of investment.

Eligibility for Kisan Credit Card

  • All farmers-individuals/Joint borrowers who are owner cultivators.
  • Tenant farmers, Oral lessees, and share croppers, etc.
  • SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers, etc.

What Documents Shall Be Needed?

The following documents shall be required for applying for a Kisan Credit Card.

  • Application Form.
  • Two Passport Size Photographs.
  • ID proof such as a Driving License/Aadhar Card/Voter Identity Card (Any One).
  • Address Proof such as Driving License, Aadhar Card, etc.
  • Proof of landholding duly certified by the revenue authorities.
  • Cropping pattern (Crops grown) with acreage.
  • Security documents for loan limit above Rs.1.60 lakhs/Rs.3 lakhs, as applicable.

How to Apply for a Kisan Credit Card?

  • Visit the website of the bank you wish to apply for the Kisan credit card scheme (SBI, Union Bank, Bank of Baroda etc).
  • From the list of options, choose the Kisan Credit Card.
  • On clicking the option of ‘Apply’, the website will redirect you to the application page.
  • Fill out the form with the required details and click on ‘Submit’.
  • An application reference number will be sent. If you are eligible, the bank will get back to you for the further process within 3-4 working days.

Bottom Line

These Kisan Credit Cards come with a magnetic strip and ISO IIN so that they can easily be used to access ATMs across India. It is usually valid for a period of five years. Those who have opted for the KCC scheme have greatly benefited from it as it has eased the overall financial aspect of farming. As we all are well aware capital requirement during sowing, cultivation, harvesting, and other agriculture activities is one of the major concerns of farmers and this has been dealt with in part with this scheme. The Kisan Credit Card can be availed from multiple public sector banks like State Bank of India, Bank of Baroda, Indian Bank and Union Bank. Some banks have now even started issuing digital Kisan Credit Cards.

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