Under the Kisan Credit Card (KCC) scheme of the Government of India, now a loan of up to ₹ 5 lakh is being available at a cheaper interest rate of 4%. This scheme gives farmers easy and cheap debt for farming, animal husbandry and other needs. The government gives 2% interest subsidy and 3% time payment bonus, due to which farmers have to pay only 4% annual interest. This is the cheapest agricultural loan in the country. So let’s know what KCC is, how it works and how can farmers take advantage of it.
KCC is the true partner of farmers
The Kisan Credit Card Scheme was started in 1998. Its aim was to give farmers a loan at the right time for farming and related work. With this card, farmers can buy seeds, fertilizers, pesticides and farming tools, they too without moneylenders. Not only this, this card also works like a debit card, so that farmers can withdraw money from ATM or buy essential items.
According to government figures, there are more than 7.75 crore active KCC accounts in the country. In 2014, where a loan of ₹ 4.26 lakh crore was distributed under KCC, by December 2024, this figure reached ₹ 10.05 lakh crore. It is clear, farmers have increased trust in this scheme and need.
How much loan will be received from KCC?
The loan amount under KCC depends on many things, such as crop expenses, land size, insurance costs and maintenance of machines used in the fields. Initially, the loan limit that is fixed, increases by 10% every year, which lasts for the next five years.
Finance Minister Nirmala Sitharaman increased the maximum limit of KCC loan from ₹ 3 lakh to ₹ 5 lakh in the budget of 2025. The special thing is that a loan of up to ₹ 2 lakh is completely available without bail. That is, you do not need to mortgage anything. But on a loan of more than ₹ 2 lakh, the bank can ask for bail according to its policies.
The KCC loan is divided into two parts – short term and term loan. Short term loan is for crops, such as buying seeds and food. At the same time, the term loan is for a long period, such as buying a tractor or installing irrigation system. The conditions of interest of both are different. This makes it easier for farmers to take and repay loans, and the accounts of banks are also clear.
How does KCC card work?
The KCC card is like a multipurpose digital debit card. Through this, farmers can withdraw money or shop from the pos machine of those selling ATM, Bank Mitra, Mobile App or seeds and seeds. The card can be connected to the base or biometric identity, so that the transaction is safe and easy.
Kisan credit card
Where can you use KCC?
With this card, farmers can do transactions at many places. Whether it is ATM, bank friend, mobile banking or Aadhaar based transaction, KCC is useful everywhere. Due to this, farmers do not have to engage in long lines of the bank. They can buy essential items from their fields, that too without any hassle. The KCC scheme is a boon for farmers. With cheap interest rate, easy loan process and digital facilities, this scheme makes farmers easier.