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GA Topper Series: Kisan Credit Card

Recent in news: Finance Minister reviewed the progress in issuance of Kisan Credit Card to Animal Husbandry, Dairying and Fisheries Sector with Banks and RRBs.

  • What is Kisan Credit Card?

The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs. The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004. The scheme was further revisited in 2012 by a working Group under the Chairmanship of Shri T. M. Bhasin, CMD, Indian Bank with a view to simplify the scheme and facilitate issue of Electronic Kisan Credit Cards. The scheme provides broad guidelines to banks for operationalizing the KCC scheme. Implementing banks will have the discretion to adopt the same to suit institution/location specific requirements.

Kisan Credit Card Yojna in Hindi


In the Budget 2018-19 the Union Government had announced their decision to extend the facilities of Kisan Credit Card (KCC) to Animal Husbandry farmers and Fisheries (AH & F) to help them meet their working capital requirements. In pursuance of the said budget announcement the matter has been examined, and in consultation with all stakeholders, it has been decided to extend the KCC facility for working capital requirement for activities related to Animal Husbandry and Fisheries.

  • What is the eligibility?

The criteria for eligible beneficiaries under KCC for Animal Husbandry and Fisheries will be as under:

  1. Fishery:
    1. Inland Fisheries and Aquaculture- Fishers, Fish Farmers (individual & groups/ partners/ share croppers/ tenant farmers), Self Help Groups, Joint Liability Groups and women groups.
    2. The beneficiaries must own or lease any of the fisheries related activities such as pond, tank, open water bodies, raceway, hatchery, rearing unit, possess necessary license for fish farming and fishing related activities, and any other State specific fisheries and allied activities.
    3. Marine Fisheries: who own or lease registered fishing vessel/boat, possess necessary fishing license/permission for fishing in estuary and sea, fish farming/mariculture activities in estuaries and open sea and any other State specific fisheries and allied activities.
  2. Poultry and small ruminant: Farmers, poultry farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmer of sheep/goats/pigs/poultry/birds/rabbit and having owned/rented/leased sheds.
  3. Dairy: Farmers and Dairy farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned /rented/leased sheds.
  4. Farmers –
    1. individual/joint borrowers who are owner cultivators;
    2. Tenant farmers, oral lessees & share croppers;
    3. Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc.
  • What is the validity period of the Kisan Credit Card?

The limit is valid for 5 years, subject to annual review.

  • What is the age requirement in order to apply for a Kisan Credit Card?

You should me a minimum of 18 years of age and be a maximum age of 75 years. If you are a senior citizen, then it is mandatory to have a co-borrower who is a legal heir

  • What is the interest rate applicable on the KCC?

The interest rate will be left to the discretion of the bank. However, according to the KCC circular dated 20 April 2012, the interest rate is 7% p.a. on short-term credit with a Rs.3 lakh upper limit on the principal amount.

  • Is revolving credit facility available on a Kisan Credit Card?

Yes, revolving cash credit facility is available on these cards for an unlimited number of withdrawals and repayments made within the credit limit.

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