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Good news for farmers! Under the Government of India's Kisan Credit Card (KCC) scheme, farmers can now avail loans of up to ₹5 lakh at just 4% annual interest. With simple eligibility, minimal paperwork, and collateral-free limits up to ₹2 lakh, this scheme offers a great opportunity to fund all kinds of agricultural needs affordably and digitally.

🔹 What Is the Kisan Credit Card (KCC) Scheme?

Launched in 1998, the KCC scheme aims to provide short-term, low-interest loans to farmers for agricultural and allied activities like:

• Purchasing seeds, fertilizers, and farm tools

• Post-harvest expenses

• Domestic needs

• Animal husbandry, irrigation, and farm maintenance

💰 Interest Rate and Subsidy Benefits

• Base Interest Rate: 7% annually

• Govt Subsidy:

  • 2% interest subvention

  • 3% incentive for timely repayment

• Effective Interest: Only 4% per annum

This makes KCC one of the cheapest credit options available for Indian farmers.

🏦 How Much Loan Can a Farmer Get?

• As per Budget 2025, the loan limit has been raised from ₹3 lakh to ₹5 lakh.

• Collateral-Free loan available up to ₹2 lakh.

• Above ₹2 lakh, banks may require collateral depending on their policies.

• The loan amount depends on:

  • Size of landholding

  • Scale of finance

  • Type of crop

  • Farm-related expenses (including insurance & machinery upkeep)

📊 Why Are Loan Limits Split?

Banks divide the KCC limit into:

1. Short-Term Loan – for crop-related expenses

2. Term Loan – for long-term investments (e.g., buying tractors, irrigation systems)
   This helps tailor repayment and interest terms for each purpose.

💳 How Does the KCC Work?

• Farmers get a digital debit card linked to their KCC account.

• It can be used to:

  • Withdraw cash from ATMs or bank mitras

  • Make purchases at PoS machines (fertilizer/pesticide shops)

  • Use mobile banking or Aadhaar-enabled transactions

• Works just like a multipurpose digital debit card with biometric security options.

📍 Where Can You Use It?

• ATMs

• Bank Mitra (BC Points)

• Mobile banking apps

• PoS terminals at agro-stores

• Aadhaar-enabled Payment System (AePS)

👨‍🌾 Who Can Apply for a KCC?

• Land-owning farmers (individual or joint ownership)

• Sharecroppers, tenant farmers, and oral lessees

• Farmer groups like Self Help Groups (SHGs) or Joint Liability Groups (JLGs)

📝 Documents Required

1. Filled KCC Application Form

2. ID & Address Proof (Aadhaar, DL, etc.)

3. Passport-size Photo

4. Proof of land ownership

5. Crop pattern details

6. For loans above ₹1.6 lakh: Collateral/guarantee-related documents

🖥️ How to Apply for KCC (Online Process)

1. Visit the website of your preferred bank

2. Select the Kisan Credit Card section

3. Click on "Apply"

4. Fill in your details and submit the form

5. You’ll receive an application number

6. The bank will contact you within 3–4 working days

👉 For offline applications, visit your nearest bank branch and fill out the KCC form. Bank officials will guide you through the eligibility and verification process.

📈 KCC's Growing Popularity

• Over 7.75 crore active KCC accounts in India

• Credit disbursed under the scheme rose from ₹4.26 lakh crore (2014) to ₹10.05 lakh crore (2024)

• This reflects growing trust and reliance on KCC by Indian farmers

🧾 Summary

The Kisan Credit Card scheme is a powerful financial tool for Indian farmers. It provides:

• Low-interest loans

• Collateral-free limits

• Digital access to credit

• Flexible usage for various farm needs

With increasing digitization and government support, the KCC is helping millions of farmers move toward self-reliance and sustainable agriculture.