Kisan Credit Card: How to Apply, Loan Limit Up to ₹5 Lakh, 4% Effective Interest on Prompt Repayment and Documents Needed
A Kisan Credit Card gives farmers crop loans at an effective 4% a year if repaid on time. The subsidised limit was raised to ₹5 lakh. How to apply and what you need.
Photo: abhiriksh / CC BY-SA 3.0, via Wikimedia Commons
A Kisan Credit Card (KCC) lets farmers borrow for crops and allied activities at an effective interest rate of 4% a year, if they repay on time. Banks charge 7%, the government gives a 1.5% interest subvention to the bank, and farmers who repay promptly get a further 3% incentive. Union Budget 2025-26 raised the loan limit eligible for this subsidised rate from ₹3 lakh to ₹5 lakh.
You apply at any commercial, cooperative or regional rural bank branch, and many banks also accept online applications.
Who can get a KCC
- Farmers who own or cultivate land, including tenant farmers, oral lessees and sharecroppers
- Self-help groups or joint liability groups of farmers
- Farmers in animal husbandry and fisheries, for working capital
Documents
- Filled KCC application form
- Aadhaar and PAN (or other ID)
- Land records: 7/12 and 8A extracts, or a tenancy document
- Crop and acreage details, and passport-size photos
How to apply
- Visit your bank branch or the bank’s website and choose Kisan Credit Card.
- Submit the form with land and identity documents.
- The bank fixes your limit based on crops grown, the scale of finance for your district and your land.
- Once sanctioned, you get a RuPay KCC card and can withdraw as needed.
PM Kisan beneficiaries can also use a simple one-page KCC form available through their bank, which links to their PM Kisan details.
How the 4% works
| Component | Rate |
|---|---|
| Interest charged by bank | 7% a year |
| Prompt repayment incentive | 3% |
| Effective rate if repaid on time | 4% |
If you repay late, you lose the 3% incentive. Loans above the subsidised limit carry the bank’s normal rates.
This is general information, not financial advice. Loan limits, interest and fees depend on your bank and land holding; confirm with your branch.
Frequently asked questions
What is the interest rate on a Kisan Credit Card?
7% a year, which falls to an effective 4% if you repay on time.
What is the maximum KCC loan at subsidised interest?
₹5 lakh, after Union Budget 2025-26 raised it from ₹3 lakh.
How can I apply for a Kisan Credit Card?
At any bank branch or through the bank’s website, with your ID, land records and crop details.
Can tenant farmers get a KCC?
Yes. Tenant farmers, oral lessees and sharecroppers are eligible, alone or through joint liability groups.
