Kisan Credit Card (KCC) with interest subvention
Short-term farm credit at 7% interest, effectively 4% for farmers who repay on time.
India · Farmers · Checked October 2026
At a glance
- Interest rate
- 7% a year on short-term loans under the interest subvention scheme
- Prompt repayment incentive
- Extra 3% for repaying on time, so the effective rate is 4%
- Loan limit for the subsidy
- Up to ₹3 lakh
- Collateral-free limit
- Up to ₹2 lakh per borrower (RBI, from 1 January 2025; earlier ₹1.60 lakh)
- Type of credit
- Revolving credit line, valid up to five years
- Animal husbandry or fisheries only
- Interest benefit applies up to ₹2 lakh
- Disasters
- Interest relief for up to one year, and up to five years in severe disasters
Who can apply
- Farmers who need short-term credit for crops. Since 2019, KCC also covers working capital for animal husbandry, dairying and fisheries.
- Your bank decides the sanctioned limit and the land or tenancy papers it needs.
How to apply
- Apply at a commercial bank, a regional rural bank or a cooperative society (PACS).
- You can also start on the government's Jan Samarth portal, which links applicants to government-backed loans including KCC. Whether it is available depends on your bank.
- Ask for a limit that matches your actual costs, and ask for the fee schedule in writing before you sign.
Documents you usually need
- Aadhaar
- Photograph
- Bank account details
- Proof of land or tenancy as your bank requires
Things to know
- The 2025 Budget announced raising the interest-subsidy limit from ₹3 lakh to ₹5 lakh, but the government's March 2026 statement still describes the ₹3 lakh scheme. Ask your bank which limit applies today.
- The 3% incentive is lost if you repay late, so plan repayment around your harvest sale.
- We found no official 2026–27 continuation notice for the interest subvention scheme at the time of checking; the March 2026 statement describes the 7% and 4% terms as current.
Frequently asked questions
What is Kisan Credit Card?
Kisan Credit Card (KCC) with interest subvention: Short-term farm loans at 7%, falling to an effective 4% if you repay on time. No collateral up to ₹2 lakh.
Who is eligible for Kisan Credit Card?
Farmers who need short-term credit for crops. Since 2019, KCC also covers working capital for animal husbandry, dairying and fisheries. Your bank decides the sanctioned limit and the land or tenancy papers it needs.
What do you get under Kisan Credit Card?
Short-term farm credit at 7% interest, effectively 4% for farmers who repay on time.
How do I apply for Kisan Credit Card?
Apply at a commercial bank, a regional rural bank or a cooperative society (PACS). You can also start on the government's Jan Samarth portal, which links applicants to government-backed loans including KCC. Whether it is available depends on your bank. Ask for a limit that matches your actual costs, and ask for the fee schedule in writing before you sign.
Read next
- Kisan Credit Card: How a Bihar Farmer Gets a Loan at 4% InterestWhat a Kisan Credit Card is, how the 7% rate becomes 4%, the ₹2 lakh no-collateral limit, and the steps to apply, from official sources.
- Money Guide for Bihar Farmers: Schemes, Loans, Insurance and Savings (2026)A plain-language guide for Bihar farmers: PM-KISAN, Kisan Credit Card loans, crop insurance, pension and safe places to save, with official sources.
Sources
Details checked on October 2026 against:
- PIB — Kisan Credit Card measures: 7% loans, 3% incentive, ₹2 lakh collateral-free limit (30 Mar 2026)
- PIB — Interest subvention and KCC: ₹3 lakh limit, revolving credit, calamity relief (28 May 2025)
General information from official sources, not legal or financial advice. SaveItIndia is not a government website. Schemes change, so confirm amounts, dates and eligibility on the official portal or with your bank before you apply.