🧾 Key Features of Kisan Credit Card (KCC) Loan
| Feature | Details |
|---|---|
| 🧑🌾 Borrower | Farmers (individuals, SHGs, tenant farmers, oral lessees) |
| 💸 Loan Purpose | For crop production, purchase of seeds, fertilizers, pesticides, etc. |
| 🏦 Loan Type | Revolving credit / term loan |
| 💰 Loan Limit | Up to ₹3 lakh (can vary based on bank and landholding) |
| 📉 Interest Rate | 7% per annum (subsidized; effective rate can be as low as 4% with prompt repayment) |
| 📆 Tenure | Usually up to 1 year (renewable) |
| 💳 Form | Issued as a credit card and passbook |
| 🔒 Collateral | Not required for loans up to ₹1.6 lakh; required beyond that |
✅ Eligibility Criteria
Indian citizens aged 18 to 75 years
Owner-cultivators, tenant farmers, oral lessees, or sharecroppers
Self Help Groups (SHGs) engaged in agriculture
Must have landholding proof (if applicable)
Apply Loan
📋 Documents Required
Aadhaar Card
PAN Card (if available)
Voter ID / Driving License
Proof of land ownership or lease
Bank account details
Passport-size photographs
Duly filled application form
🎯 Uses of KCC Loan
Buying seeds, fertilizers, and pesticides
Payment of irrigation costs and electricity bills
Harvesting and transporting crops
Buying agricultural tools or light machinery
Post-harvest expenses
Household consumption (up to a certain limit)
🛡️ Insurance Benefits with KCC
Many KCC accounts come bundled with accidental insurance of up to ₹50,000 – ₹1 lakh, depending on the issuing bank.
🏦 Where to Apply
Public Sector Banks – SBI, PNB, Bank of Baroda, etc.
Private Banks – ICICI, HDFC, Axis Bank, etc.
Regional Rural Banks (RRBs)
Co-operative Banks
🔁 How Repayment Works
Crop loans are typically repaid after the harvest season.
Loan limits can be renewed annually based on performance and need.
Interest subvention (government subsidy) applies if the loan is repaid on time.
💡 Benefits of KCC / Crop Loan
| Benefit | Description |
|---|---|
| 💳 Flexible credit access | Use as and when needed like a credit card |
| 📉 Low interest | As low as 4% with timely repayment & government subsidy |
| 📝 Minimal documentation | Simple process for small and marginal farmers |
| ⏳ Quick disbursal | Funds are made available quickly to meet seasonal needs |
| 🔄 Renewable facility | Credit limit can be renewed yearly |
🔍 Example:
Raju, a small farmer in Bihar, gets a KCC loan of ₹1.2 lakh.
He uses it for seeds, fertilizers, and irrigation.
After harvest, he repays within 12 months and gets interest subvention, effectively paying only 4% interest.
His credit limit is renewed for next year automatically.
🚜 In Summary
KCC Loan = Instant, low-cost credit access for farmers.
Helps reduce dependence on moneylenders and ensures timely farming.