Credit Limits & Scale of Finance Assessment
The KCC credit limit is calculated systematically based on the farmer's operational landholding, crop patterns, and the district-level Scale of Finance (SOF) determined annually by District Level Technical Committees (DLTC).
The facility operates as a revolving cash credit account valid for five years, featuring automatic annual 10% limit step-ups to accommodate inflation and rising input costs.
- Scale of Finance: Loan limit derived per acre based on specific crop production costs notified by the DLTC
- Post-Harvest / Household Component: Additional 10% of limit earmarked for post-harvest household consumption
- Farm Maintenance Component: Additional 20% allocated for crop insurance and farm asset upkeep
- Five-Year Revolving Limit: Single documentation provides credit for five continuous years with annual renewals
Interest Subvention & Prompt Repayment Incentive
Under the Modified Interest Subvention Scheme (MISS), the central government subsidizes crop loan interest rates for short-term working capital up to 3 lakh rupees.
While the benchmark lending rate is 9%, the government provides a 2% upfront interest subvention, reducing the effective rate to 7%. Farmers who repay their dues on or before the due date receive an additional 3% Prompt Repayment Incentive (PRI), resulting in a net 4% interest rate.
- Concessional Interest Rate: Effective 7% base interest rate on crop loans up to 3 lakh rupees
- Prompt Repayment Incentive: Extra 3% rebate for prompt annual repayment, lowering net interest to 4%
- Collateral-Free Limit: Loans up to 1.60 lakh rupees are sanctioned without requiring land mortgage or third-party security
- Animal Husbandry & Fisheries: Working capital loans up to 2 lakh rupees available for dairy, goat, poultry, and fishery activities
Eligibility Criteria & Digital JanSamarth Application
All owner-cultivators, tenant farmers, oral lessees, sharecroppers, and Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers are eligible for KCC coverage.
Farmers can apply through their local bank branch, Primary Agricultural Credit Society (PACS), or submit digital applications through the National Portal for Credit-Linked Government Schemes (JanSamarth).
- Required Documents: Completed one-page KCC form, Aadhaar card, PAN card or Form 60, land title record (7/12, Khasra, Khatauni)
- Online Application: Submit digital applications through the JanSamarth portal (jansamarth.in)
- ATM-cum-Debit Card: Banks issue RuPay KCC debit cards allowing card withdrawals at any bank ATM or fertilizer POS terminal
Official source
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National Bank for Agriculture and Rural Development (NABARD) ↗Related on KisanPe
Common questions
What is the net interest rate on a Kisan Credit Card loan?
The base rate is 7%, but farmers who repay on time receive a 3% prompt repayment incentive, reducing the net interest rate to just 4% per annum for loans up to 3 lakh rupees.
Can a tenant farmer without land ownership get a Kisan Credit Card?
Yes, tenant farmers, oral lessees, and sharecroppers can access KCC loans individually or through Joint Liability Groups (JLGs) without pledging land collateral.
What is the collateral-free loan limit under the KCC scheme?
The Reserve Bank of India has waived collateral and land mortgage requirements for agricultural loans up to 1.60 lakh rupees.
General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.
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