Kisan Credit Card (KCC) Scheme 2025: Easy Loans for Farmers at Low Interest

Kisan Credit Card (KCC): Empowering Indian Farmers Through Affordable Credit

published on: July 10, 2025
By: Mr TPM

The Kisan Credit Card (KCC) scheme, launched by the Government of India in 1998, continues to be a lifeline for millions of Indian farmers. Designed to provide timely and affordable credit to farmers, the KCC scheme ensures that they have the financial resources needed for cultivation, post-harvest expenses, and allied agricultural activities such as dairy, poultry, and fisheries.

In a country where over 50% of the workforce is engaged in agriculture, access to easy credit can make the difference between profit and loss — and in many cases, survival and despair.

What is the Kisan Credit Card (KCC)?

The Kisan Credit Card is a government-backed initiative that allows farmers to obtain short-term loans from banks and financial institutions at subsidized interest rates, often as low as 4% per annum (after interest subvention). The credit is typically used for:

• Purchasing seeds, fertilizers, and pesticides.
• Paying for labor and irrigation.
• Buying agricultural tools and machinery.
• Covering post-harvest and marketing expenses.

It also extends to non-farm activities, including dairy, animal husbandry, and fisheries, especially after its expansion under the Atmanirbhar Bharat package in 2020.

Key Features of KCC

Feature	Description
Loan Limit	Up to ₹3 lakhs without collateral (subject to bank norms).
Interest Rate	Base rate ~7%, reduced to ~4% with timely repayment.
Validity	5 years with annual reviews.
Flexible Withdrawals	Similar to an overdraft or credit card.
Insurance Coverage	Personal accident insurance up to ₹50,000 for death and ₹25,000 for disability.

Eligibility Criteria

To apply for a Kisan Credit Card, a person must:

• Be an Indian farmer (individual or joint borrowers).
• Be engaged in agricultural or allied activities.
• Be between 18 and 75 years of age.
• For senior citizens (above 60), a co-borrower (legal heir) is mandatory.

How to Apply for KCC?

Farmers can apply for the Kisan Credit Card through:

• Nearest Bank Branch: Most nationalized and cooperative banks accept KCC applications.
• Online via PM Kisan Portal (https://pmkisan.gov.in): Farmers registered under PM-KISAN can apply for KCC online.
• Common Service Centers (CSCs) in villages also help process applications.

Documents Required:

• Aadhaar card
• PAN card or Form 60
• Land records / cultivation proof
• Passport-size photo
• Duly filled application form

Recent Updates (2025)

As of July 2025, over 7 crore KCCs have been issued across India. In a recent address, the Union Agriculture Minister emphasized the government’s target to extend KCC benefits to all PM-KISAN beneficiaries, including those engaged in fisheries and animal husbandry.

To further enhance credit accessibility, the government is also working on digitizing KCC records and integrating KCCs with Jan Dhan and Aadhaar to streamline disbursal and monitoring.

Why KCC Matters

Many small and marginal farmers in India are forced to rely on moneylenders who charge exorbitant interest rates. The KCC scheme gives farmers the freedom to borrow responsibly at minimal cost. It also promotes financial literacy and inclusion in rural areas, ensuring farmers have access to formal banking systems.

Moreover, timely credit ensures better crop planning, efficient purchase of inputs, and reduced stress on farmers — leading to higher productivity and income.

Expert Speak

"KCC has been a game changer for our village. Earlier we borrowed from local agents at 3% monthly. Now I get a loan at 4% yearly, and it’s enough to cover my crop expenses,"
says Rajendra Sahu, a farmer from Odisha.

"If implemented well, KCC can solve a major portion of the rural credit gap. It should be expanded to landless farmers through Self Help Groups (SHGs) and FPOs,"
notes Dr. Neha Sharma, an agri-economist.

Help & Support

• Toll-Free KCC Helpline: 1800-112-196
• Official Website: https://pmkisan.gov.in
• Visit your nearest bank branch or CSC for offline applications.

Conclusion

The Kisan Credit Card is more than just a financial product — it is a tool of empowerment for the Indian farmer. With easier access to credit and lower interest rates, farmers can plan their cropping cycles better, invest in productivity, and break the debt trap.

To truly realize its full potential, the government, banks, and local institutions must ensure awareness, access, and timely credit delivery to every farmer in need.