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Kisan Credit Card (KCC): features and exam facts
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The Kisan Credit Card (KCC) is a credit facility that lets farmers draw working capital for cultivation and related needs from a bank through a single card or passbook, instead of applying for a fresh loan every season. It was introduced in August 1998 as a model scheme by NABARD and has been adopted by commercial banks, regional rural banks and cooperative banks.
What it covers
- Short-term credit for crop production
- Post-harvest expenses
- Produce marketing loans
- Household consumption needs of the farmer
- Working capital for maintenance of farm assets and allied activities
- Investment credit for agriculture and allied activities
The 2018-19 Budget extended the facility to animal husbandry and fisheries farmers, so they can get working capital through KCC.
How it works
Banks fix a credit limit based on the scale of finance for the farmer's crops. The farmer draws money as needed, repays after harvest, and the card is valid for several years, usually five, subject to annual review. A RuPay debit card is issued so cash can be withdrawn from ATMs.
Interest support and collateral
Under the government's Modified Interest Subvention Scheme, farmers who take short-term crop loans through KCC and repay on time get an effective interest rate lower than the stated rate. The Union Budget 2025-26 announced raising the loan ceiling covered by this scheme from ₹3 lakh to ₹5 lakh. The RBI has also raised the collateral-free limit on agricultural loans in steps, most recently to ₹2 lakh from 1 January 2025. Check rbi.org.in and the Department of Agriculture's site for current numbers, because both are revised.
How it fits with PSL
KCC loans count as agriculture under priority sector lending, so banks are keen to issue them. The shortfall funds also flow through NABARD, as explained in that entry.
How bank exams ask about it
Questions ask for the year of launch, the sponsor (NABARD model scheme), what the card is for, and the facilities for livestock and fisheries. Newer stems ask about the interest subvention limit announced in the budget. Combine them with the agricultural credit points in banking awareness.
Frequently asked questions
Who can get a KCC?
Farmers who own or cultivate land, tenant farmers, sharecroppers and self-help groups of farmers. People in animal husbandry and fisheries are also covered.
Is KCC a credit card in the usual sense?
No. It is a revolving credit limit for agriculture with a card or passbook as the access tool. It carries lower rates and agriculture-specific repayment timing.
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