Kisan Credit Card Scheme 2025: Interest Rates, Benefits, Loan Limits & How to Apply

The Kisan Credit Card (KCC) Scheme, launched in 1998 by the Government of India in collaboration with the National Bank for Agriculture and Rural Development (NABARD), remains a cornerstone of financial inclusion for Indian farmers. Designed to provide timely and affordable credit, the KCC scheme empowers farmers to meet their agricultural and allied needs without relying on high-interest moneylenders. In 2025, the scheme has been further strengthened with increased loan limits and expanded outreach, as announced in the Union Budget 2025-26. This article delves into the details of the Kisan Credit Card Scheme 2025, covering its interest rates, benefits, loan limits, eligibility, and application process, offering a comprehensive guide for farmers and stakeholders.

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What is the Kisan Credit Card Scheme?

The Kisan Credit Card Scheme is a government-backed initiative that provides farmers with a flexible, revolving credit facility to meet their financial requirements for agriculture, allied activities, and household needs. It operates as a single-window solution, simplifying access to credit through a hassle-free process. The scheme enables farmers to purchase essential inputs like seeds, fertilizers, and pesticides, invest in farm equipment, and cover post-harvest expenses. Over the years, the scheme has evolved to include allied activities such as animal husbandry, fisheries, poultry, and even non-farming activities, making it a holistic financial tool for rural India.

Kisan Credit Card Scheme

The KCC scheme is implemented by a range of financial institutions, including Public Sector Banks, Private Sector Scheduled Commercial Banks, Small Finance Banks, Regional Rural Banks (RRBs), and Rural Cooperative Banks. In 2012, the scheme was revised to facilitate the issuance of electronic Kisan Credit Cards, and in 2025, it continues to embrace digital advancements, such as the Digital KCC by Union Bank of India, to streamline loan sanctions and disbursals.

Pradhanmantri Dhan Dhanya Krishi Yojana

Kisan Credit Card Scheme (KCC) Highlights

Scheme	Kisan Credit Card Scheme (KCC)
Purpose	Provides revolving credit for agriculture, allied activities (dairy, poultry, fisheries), and household needs.
Loan Limit	Up to ₹5 lakh for crop cultivation, post-harvest expenses, and allied activities, with annual increases.
Interest Rates	7% per annum for loans up to ₹5 lakh; 4% with Prompt Repayment Incentive for loans up to ₹3 lakh. Rates for higher amounts range from 8.85% to 13%.
Eligibility	Individual farmers, tenant farmers, sharecroppers, SHGs, and JLGs engaged in agriculture or allied activities.
Collateral	Collateral-free loans up to ₹2 lakh; up to ₹3 lakh exempt if recovery arrangements are made.
Benefits	Low interest rates, crop and accident insurance, flexible repayments, no processing fees for loans up to ₹3 lakh, and RuPay/debit card access.
Repayment Period	Five-year tenure with annual reviews; repayments aligned with crop harvest/marketing, extendable for calamities.
Application Process	Apply offline at bank branches or online via bank portals
Category	Central Govt Scheme
Year	2025

Rural Prosperity And Resilience Programme

Interest Rates in 2025

One of the most attractive features of the Kisan Credit Card Scheme is its subsidized interest rates, designed to make credit affordable for farmers. As per the Modified Interest Subvention Scheme (MISS) announced in the Budget 2025-26, the interest rates for KCC loans are structured as follows:

Loans up to ₹5 lakh: Short-term agricultural loans up to ₹5 lakh are offered at a concessional interest rate of 7% per annum, subject to the government providing interest subvention. This is a significant increase from the previous limit of ₹3 lakh, reflecting the government’s commitment to supporting farmers’ growing financial needs.
Prompt Repayment Incentive (PRI): Farmers who repay their loans on time are eligible for an additional 3% interest subvention, effectively reducing the interest rate to 4% per annum for loans up to ₹3 lakh. For allied activities like fisheries and animal husbandry, this benefit applies to loans up to ₹2 lakh.
Loans above ₹5 lakh: For amounts exceeding ₹5 lakh, interest rates are determined by individual banks’ policies and may range from 8.85% to 13% per annum, depending on the bank, loan amount, and the borrower’s credit profile.

Factors Influencing Interest Rates:

Loan Amount: Loans up to ₹5 lakh attract lower rates due to government subsidies, while higher amounts carry standard bank rates.
Repayment Behavior: Timely repayments qualify for the PRI, reducing the effective interest rate.
Bank Policies: While the government sets a standard 7% rate for subsidized loans, banks have flexibility for higher amounts, leading to variations (e.g., Axis Bank at 8.85%, SBI starting at 2% for specific cases).
Simple vs. Compound Interest: Prompt repayments attract simple interest, which is more affordable, while delayed repayments may lead to compound interest, increasing the financial burden.

To avail of the interest subvention, farmers must submit their Aadhaar details to the bank, as mandated by the government.

Namo Drone Didi Scheme

Benefits of the Kisan Credit Card Scheme

The KCC scheme offers a range of benefits tailored to meet the diverse needs of farmers. Here are the key advantages:

Affordable Credit: With interest rates as low as 4% (after PRI) for loans up to ₹3 lakh, the scheme protects farmers from exploitative moneylenders charging exorbitant rates.
Flexible Credit Facility: The KCC operates as a revolving cash credit account, allowing farmers to withdraw funds as needed without restrictions on the number of debits or credits.

Comprehensive Coverage: The scheme supports:

Short-term credit for crop cultivation (seeds, fertilizers, pesticides).
Post-harvest expenses (storage, transportation).
Produce marketing loans to store and sell produce at better prices.
Working capital for farm asset maintenance and allied activities (dairy, poultry, fisheries).
Investment credit for purchasing farm equipment, minor irrigation, and land development.
Household and consumption needs (up to 10% of the loan limit).

Collateral-Free Loans: Loans up to ₹2 lakh are collateral-free, and up to ₹3 lakh are exempt if tied to recovery arrangements. For fisheries, the collateral-free limit has been raised to ₹2 lakh from January 1, 2025.

Insurance Benefits: KCC includes:

Crop insurance against natural calamities and pest attacks.
Personal Accident Insurance Scheme (PAIS) offering up to ₹50,000 for permanent disability or death and ₹25,000 for other risks.
Asset and health insurance options.

Flexible Repayment: Repayment schedules align with crop harvesting and marketing periods, with extensions available for crop losses due to natural calamities. The loan tenure is typically five years, with annual reviews.

Digital Access: Farmers receive RuPay Kisan Cards or debit cards for seamless transactions at ATMs, POS terminals, and micro-ATMs. Some banks offer digital KCC applications with reduced turnaround times (e.g., Union Bank’s Digital KCC sanctions loans within minutes).

No Processing Fees: Loans up to ₹3 lakh incur no processing or inspection charges, reducing the cost of borrowing.

Integration with PM-KISAN: The scheme complements the PM-KISAN program, which provides ₹6,000 annually in three installments, enhancing farmers’ financial stability.

In 2025, the scheme aims to reach an additional 10 million farmers, bringing the total to 7.7 crore beneficiaries, with operative KCC accounts crossing ₹10 lakh crore.

Loan Limits in 2025

The loan limit under the KCC scheme is determined based on the farmer’s land holdings, cropping pattern, and financial needs. The Budget 2025-26 increased the maximum loan limit from ₹3 lakh to ₹5 lakh, enabling farmers to address rising costs. The limit is calculated as follows:

Crop Cultivation: Scale of finance (set by the District Level Technical Committee) × area cultivated + 10% for post-harvest, household, and consumption needs + 20% for farm asset maintenance, crop insurance, and PAIS.
Annual Increase: An additional 10% of the crop loan component is added each year (2nd to 5th year) to account for cost escalation and changes in the scale of finance.
Term Loans: For investments in farm equipment, irrigation, or allied activities, the limit is based on the unit cost of the asset, the farmer’s repayment capacity, and existing loan obligations.
Allied Activities: For activities like fisheries and animal husbandry, the limit is capped at ₹2 lakh for interest subvention benefits.

The total limit combines short-term credit for cultivation and working capital with term loans for long-term investments, valid for five years with annual reviews. If the cropping pattern changes, the limit is recalculated accordingly.

Pradhan Mantri Fasal Bima Yojana

Eligibility Criteria

The KCC scheme is inclusive, covering a wide range of farmers and groups:

Individual Farmers: Owner-cultivators, tenant farmers, oral lessees, and sharecroppers.
Groups: Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers, including tenant farmers and sharecroppers.
Allied Activity Participants: Those engaged in dairy, poultry, fisheries, sericulture, or other agricultural activities.
Age Requirements: Applicants must be between 18 and 75 years. For those over 60, a co-borrower (legal heir or immediate kin) is mandatory.
Residency: Tenant farmers or sharecroppers must have resided in the village for at least three years and cultivated land for a similar period to qualify for smaller limits (e.g., up to ₹10,000).

Farmers must provide proof of land ownership or lease agreements and valid identity documents to meet Know Your Customer (KYC) requirements.

Key Documents Required

Aadhaar Card (mandatory for interest subvention).
Voter ID, Driving License, or Passport.
Land ownership or lease documents certified by revenue authorities.
Two passport-size photographs.
Crop details and proposed cropping pattern.
Additional documents as per bank requirements (e.g., income proof for higher limits).

How to Apply for a Kisan Credit Card in 2025

The application process for the KCC scheme is designed to be simple and accessible, with both online and offline options available. Here’s a step-by-step guide:

Offline Application

Visit a Bank Branch: Approach a participating bank (e.g., SBI, PNB, HDFC, Axis Bank, or regional banks like Karnataka Bank).

Submit Documents:

Identity Proof: Aadhaar Card, Voter ID, Driving License, or Passport.
Address Proof: Aadhaar Card, utility bills, or other valid documents.
Land Ownership/Lease Proof: Certified land records or lease agreements.
Photographs: Two passport-size photos.
Other Documents: As required by the bank (e.g., crop details, income proof).
Fill Application Form: Complete the KCC application form provided by the bank.
Loan Assessment: The bank assesses the loan limit based on land holdings, cropping pattern, and repayment capacity.
Approval and Disbursal: Upon approval, the KCC is issued (often as a RuPay card or debit card), and funds are disbursed to the account.

Online Application

Many banks, such as SBI, Union Bank of India, and Karnataka Bank, offer online application options:

Visit the Bank’s Website: Access the KCC application portal .
Fill Online Form: Provide details about land holdings, cropping pattern, and KYC information.
Upload Documents: Submit scanned copies of required documents.
Digital Verification: Some banks use satellite imagery, geotagging, and credit bureau checks for faster processing.
E-Sign Documents: Complete loan agreements digitally using Aadhaar-based e-signing.
Receive KCC: Once approved, the digital KCC is activated, and funds are accessible via ATM or POS.

Considerations

While the KCC scheme is transformative, farmers should be aware of potential challenges:

Timely Repayments: Delayed repayments lead to compound interest, increasing costs.
Bank Discretion: Interest rates for loans above ₹5 lakh vary, requiring farmers to compare bank offers.
Documentation: Accurate land and KYC documents are critical to avoid delays.
Awareness: Some farmers, especially in remote areas, may not be aware of digital application options or interest subvention benefits.

Farmers are advised to maintain good financial records, use credit for intended agricultural purposes, and communicate with banks promptly in case of repayment difficulties.

Conclusion

The Kisan Credit Card Scheme 2025 is a game-changer for Indian farmers, offering affordable credit, flexible repayment options, and comprehensive financial support. With increased loan limits of up to ₹5 lakh, subsidized interest rates starting at 4% (with PRI), and digital application processes, the scheme is more accessible than ever. By empowering 7.7 crore farmers and expanding to an additional 10 million in 2025, the KCC scheme strengthens the backbone of India’s economy—its farmers. Whether you’re an individual cultivator, tenant farmer, or part of a farming group, the KCC scheme provides a robust platform to meet your agricultural and allied needs. Visit your nearest bank branch or explore online portals to apply and unlock the benefits of this farmer-friendly initiative.

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FAQs: Kisan Credit Card Scheme 2025

Q. What is the Kisan Credit Card (KCC) Scheme?

The KCC Scheme provides farmers with a revolving credit facility to meet agricultural, allied, and household expenses, offering affordable loans with subsidized interest rates.

Q. Who is eligible for a KCC?

Individual farmers, tenant farmers, sharecroppers, Self-Help Groups (SHGs), and Joint Liability Groups (JLGs) engaged in agriculture or allied activities like dairy, poultry, and fisheries are eligible.

Q. What is the loan limit under KCC in 2025?

The maximum loan limit is ₹5 lakh, covering crop cultivation, post-harvest expenses, farm maintenance, and allied activities, with annual increases based on cost escalation.

Q. What are the interest rates for KCC loans?

Loans up to ₹5 lakh have a 7% interest rate, reducible to 4% with prompt repayment. Loans above ₹5 lakh have rates between 8.85% and 13%, depending on the bank.

Q. What are the key benefits of the KCC Scheme?

Benefits include low interest rates, collateral-free loans up to ₹2-3 lakh, flexible repayments, crop and personal accident insurance, and digital access via RuPay/debit cards.

Q. How can I apply for a KCC?

Apply offline at a bank branch with documents like Aadhaar, land records, and photos, or online via bank portals (e.g., Union Bank’s Digital KCC) with digital verification.

Q. What documents are required for a KCC?

Required documents include Aadhaar, Voter ID or other identity proof, land ownership/lease papers, two passport-size photos, and crop details.

Q. Is collateral required for KCC loans?

Loans up to ₹2 lakh are collateral-free, and up to ₹3 lakh may be exempt with recovery arrangements. Higher amounts may require collateral based on bank policies.

Q. What is the repayment period for KCC loans?

The loan tenure is five years with annual reviews, and repayments align with crop harvesting/marketing periods, with extensions for natural calamities.

Q. Can I use KCC for non-agricultural purposes?

Up to 10% of the loan limit can be used for household and consumption needs, ensuring flexibility for farmers’ personal expenses.