Kisan Credit Card (KCC)

Brief
It was introduced in 1998, provides Indian farmers with timely and affordable institutional credit for agricultural and allied activities, reducing their dependence on high-interest informal lenders

Objectives
To provide adequate and timely credit support from the banking system with flexible and simplified procedures to the farmers to purchase agricultural inputs

Eligibility Criteria
- Minimum age 18 years for a KCC
- Individual/joint borrowers who are owner cultivators
- Tenant farmers, oral lessess & share croppers
- SHG or Joint Liability Groups (JLGs) of farmers

Benefits
- 7% p.a. interest on KCC loans
 - 1.5% to 3% p.a. interest subvention on crop loans to a set limit
 - 3% interest subvention on prompt repayment incentive
- Loan limit up to Rs. 5 lakh
- 5 years validity of KCC
- Supports cultivation, post-harvest costs, asset maintenance, and household consumption needs
- Covering allied activities such as animal husbandry, dairy, and fisheries
- Offers a revolving credit facility via ATM-enabled RuPay cards with one-time documentation valid for five years
- Includes built-in crop coverage under PMFBY and Personal Accident Insurance (PAIS) up to ₹50,000
- The credit limit automatically increases by 10% annually for five years to accommodate rising costs
- Small and marginal farmers can avail subsidized interest against Negotiable Warehouse Receipt (NWR) for up to six months post-harvest to prevent distress sales