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Kisan Credit Card Scheme

Kisan Credit Card Scheme (KCC) provide short-term credit to the Farmers. This topic covers How to get the card, Benefits, Services from leading banks and Personal Accident Insurance Scheme etc.


  • To provide insurance coverage and financial support to the farmers in the event of failure of crops as a result of natural calamities, pests and diseases.
  • To encourage farmers to adopt progressive farming practices, high value inputs and higher technology in agriculture.
  • To help stabilise farm incomes, particularly in disaster years.
  • To support and stimulate primarily production of food crops and oilseeds.

Eligibility and credit limit


  • All farmers-individuals/Joint borrowers who are owner cultivators.
  • Tenant farmers, Oral lessees and Share Croppers etc.
  • SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers etc.,

Loan amount

  • Short term credit limit is fixed for the first year depending upon
    • the crops cultivated as per proposed cropping pattern & scale of finance
    • post-harvest/ household / consumption requirements
    • Maintenance expenses of farm assets, crop insurance, Personal Accident Insurance Scheme (PAIS) and Asset insurance.
  • For every successive years (2nd, 3rd, 4th, and 5th year), the limit will be stepped up @10%.(short term credit limit sanctioned for 5th year will be about 150% of the first year limit allowed to farmers).
  • Investment credit requirement of small value in the nature of farm implements/ equipments etc (like sprayer, plough etc.,) and repayable within a period of one year will be included while fixing KCC limit (This portion of the credit will not be included for automatic step up during 2nd year to 5th year but credit requirement for this portion in each year will be reckoned for arriving at the maximum drawal limit for the respective year).
  • The short term loan limit arrived for the 5th year, plus estimated investment loan requirement (highest among the five years) above will be the Maximum Permissible Limit (MPL) and sanctioned as the Kisan Credit Card Limit.
  • Short term loan limit assessed for the first year or for the 2nd to 5th year plus the estimated investment credit limit required, will be the Maximum Drawal Limit (MDL) allowed in the account, for the particular year.
  • KCC will be in the nature of revolving account. Credit balance in the account, if any, to fetch interest at Savings bank rate.
  • Processing charges waived for KCC limit up to Rs.3 lacs.
  • Collateral security is waived for
    • limit of up to Rs.1 lac
    • limit up to Rs.3 lacs for loans with tie-up arrangement for recovery.
  • KCC accounts should be renewed annually, well before the above due dates, every year to continue the limit during the KCC validity period of 5 years.
  • Eligible crops shall be covered under Crop Insurance Scheme - National Agricultural Insurance Scheme (NAIS).

Advantages of the KCC Scheme to the farmers

Salient features Scheme

  • Eligible farmers to be provided with a Kisan Credit Card and a pass book or card-cum-pass book.
  • Revolving cash credit facility involving any number of drawals and repayments within the limit.
  • Limit to be fixed on the basis of operational land holding, cropping pattern and scale of finance.
  • Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit.
  • Sub-limits to cover short term, medium term as

    well as term credit are fixed at the discretion of banks.

  • Card valid for 3 to 5 years subject to annual review. As incentive for good performance, credit limits could be enhanced to take care of increase in costs, change in cropping pattern, etc.
  • Each drawal to be repaid within a maximum period of 12 months.
  • Conversion/reschedulement of loans also permissible in case of damage to crops due to natural calamities.
  • Security, margin, rate of interest, etc. as per RBI norms.
  • Operations may be through issuing branch (and also PACS in the case of Cooperative Banks) through other designated branches at the discretion of bank.
  • Withdrawals through slips/cheques accompanied by card and passbook.
  • Crop loans disbursed under KCC Scheme for notified crops are covered under Rashtriya Krishi Bima Yojna (National Crop Insurance Scheme), a crop insurance scheme introduced at the behest of Government of India to protect the interest of the farmer against loss of crop yield caused by natural calamities, pest attacks etc

Contents of Credit Card

Beneficiaries covered under the Scheme are issued with a credit card and a pass book or a credit card cum pass book incorporating the name, address, particulars of land holding, borrowing limit, validity period, a passport size photograph of holder etc. which may serve both as an identity card and facilitate recording of transactions on an ongoing basis.

Borrower is required to produce the card cum pass book whenever he/she operates the account

Personal Accident Insurance Scheme -Salient features

Scheme covers risk of KCC holders against death or permanent disability resulting from accidents caused by external, violent and visible means, as under: Death due to accident (within 12 months of the accident) caused by outward, violent and visible means -- Rs.50,000/- Permanent total disability -- Rs.50,000/- Loss of two limbs or two eyes or one limb and one eye -- Rs.50,000/- Loss of one limb or one eye -- Rs.25,000/-

  • Nominated office of insurance company to issue a Master Insurance Policy to each DCCB/RRB covering all its KCC holders.
  • Premium payable Rs.15/- for a one year policy while Rs.45/- for a 3-year policy.
  • Designated insurance company will nominate one office at district level to function as nodal office for co-ordinating implementation of personal accident insurance scheme for KCC holders in the district.
  • Insurance coverage available under Policy only from date of receipt of premium at insurance company
  • Banks to ensure to incorporate name of Nominee in Kisan Credit Card-cum-Pass Book.
  • Simplified claim settlement procedure evolved under Scheme whereby an Enquiry-cum-Verification Committee comprising Branch Manager of implementing bank, Lead Bank Officer and representative of insurance company to certify nature of accident causing disability/death and recommend settlement of insurance claims.

RuPay Kisan Credit Cards

RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfill the Reserve Bank of India ’s desire to have a domestic, open loop, and multilateral system of payments in India. RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCard and Visa in India.

NABARD, in January, 2013 set up Special Project Unit- Kisan Credit Card (SPU-KCC) with a mandate for encouraging cooperative banks and Regional Rural Banks across the country to issue Rupay KCC debit cards. The overarching goal is to develop cash-less eco system by enabling the farming community to avail all new banking facilities at par with urban area of the country.

Category: Credit

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