What is the Kisan Credit Card (KCC)? ; How to apply online; Verify Eligibility, Process, and Features | UPSC


Kisan Credit Card System: Finance Minister Nirmala Sitharaman announced on May 14, 2020 a concessional loan of Rs 2 lakh crore benefit 2.5 crore from farmers through the Kisan Credit Card System (KCC). The government will undertake a special campaign to provide this credit to PM-KISAN beneficiaries through the Kisan credit card. In addition, the Minister also announced that the KCC program will now cover fishermen and livestock. This decision should allow farmers to obtain loans at concessional rates. Here in this article, we have shared everything about the Kisan credit card program like what is the program, who can apply, how to apply online, what is the eligibility and its main features. . The information is important for the UPSC IAS 2020 exam.

Let’s take a look at all the key Kisan credit card information below that answers all your questions:

Main features of Kisan credit cards

Offers institutional credit or loans to farmers to carry out agricultural activities

Farmers benefit from flexible loan repayment options

Farmers can benefit from a loan for a period of up to 3 years

Kisan credit card holders can also take advantage of the National Crop Insurance Plan and PM-KISAN benefits.

Help farmers buy seeds, fertilizers, etc.

Allows farmers to withdraw money from the card

Provides protection against crop loss due to pest attacks and natural disasters

What is the Kisan Credit Card?

The Kisan Credit Card is a government program that allows farmers to borrow money from banks at preferential rates in the form of loans.

When and why was the Kisan credit card program launched?

The Kisan Credit Card Scheme was launched in 1998 to meet the financial needs of farmers in India.

How is the Kisan credit card system beneficial for farmers?

The program helps farmers access institutional credit at concessional rates. It reduces the dependence of farmers on the informal banking system or pawn shops.

What is covered by the Kisan credit card?

Cheap interest rate loan

Post harvest costs

Working capital to maintain farm assets and farming related activities

Investment credit for planting, drip irrigation, land development, pump units, etc.

Consumption requirements of farmers

Who can apply for a Kisan credit card?

  1. Small and marginal farmers
  2. Sharing collectors
  3. Fishermen
  4. People involved in breeding
  5. Tenants and sharecroppers
  6. Support groups (SHG)
  7. Joint Responsibility Groups (JLGs)
  8. What are the eligibility criteria for the Kisan credit card?

People involved in agriculture and farming activities can apply for the KCC. Farmers who cultivate on other people’s land can also apply for the card.

Applicant’s age must be between 18 and 75 years old.

For people over 60, it is mandatory to have a co-applicant.

How do I apply for the Kisan credit card online?

Take a look at the online application process for a Kisan credit card:

Step 1: Visit the bank’s official website – SBI / Axis Bank / PNB / Indian Overseas Bank / Bank of India / HDFC Bank / Others

2nd step: Search “Apply for KCC” online and download and print the application form

Step 3: Complete the KCC form completely

Step 4: Send the completed form to the nearest branch of the Bank

Step 5: The loan officer will review your form, issue the request reference number

Step 6: Record the reference number of the request

Step 7: Once the loan is sanctioned, the Kisan credit card will be shipped

Direct link to apply online for PM KISAN credit card


KCC – Bank of India



What documents are needed to apply for a Kisan credit card?

Completed KCC Application Form

Copy of proof of identity with photo – Aadhaar card / PAN card / voter ID / driver’s license / passport / NREGA work card / letter issued by UIDAI

Copy of proof of address – Aadhaar card / voter card / driver’s license / utility bill / ration card / property registration document / NREGA labor card / bank statement

Land documents

2 passport size photos

Documents requested by the bank

How much loan can we get with the Kisan credit card?

The farmers get the short term loan through the Kisan credit card up to Rs. 3 lakh. To benefit from the loan higher than Rs 1 Lakh, the farmers have to mortgage the crops or their land.

What is the interest rate for a loan with the Kisan credit card?

Farmers get a loan of up to Rs 3 Lakh at a reduced interest rate of 7%. Whether a farmer is able to repay the loan amount on the due date; he or she gets another 3% discount. In this case, the effective interest rate becomes only 4%.

How can we use the Kisan credit card?

Farmers can use the KCC card to buy seeds, pesticides, fertilizers, to pay workers, to withdraw money, and to buy agricultural products and equipment. Farmers who have received a loan of Rs 25,000 and more obtain a checkbook with the KCC.

Which banks offer Kisan credit cards?


State Bank of India – SBI

Axis Bank

National Bank of Punjab – PNB

Indian Overseas Bank

Bank of India




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