Kisan Credit Card Scheme: Farmers Can Now Get ₹5 Lakh Loan at Just 4% Interest – Know Eligibility and Application Process

The government is running several welfare schemes with the goal of doubling farmers’ income, and the Kisan Credit Card (KCC) is one of the most impactful initiatives. Introduced to free farmers from the high-interest trap of moneylenders, this scheme allows them to access loans at affordable rates.

The highlight? Farmers can now avail a loan of up to ₹5 lakh through KCC — a significant increase from the earlier ₹3 lakh limit.

Special Drive in Uttar Pradesh

To ensure that every eligible farmer gets timely access to KCC benefits, the Uttar Pradesh government recently conducted a special campaign that ran till July 31. The aim was to connect as many needy farmers as possible to the credit card scheme, enabling them to secure funds for their agricultural needs without financial strain.

Under the Kisan Credit Card Yojana, farmers can take loans for:

• Short-term cultivation expenses

• Post-harvest activities

• Household needs

• Livestock and dairy farming

• Fishery and poultry farming

• Farm equipment repair and maintenance

Loan Details Under KCC

• Total Loan Limit: Up to ₹5 lakh

• Breakdown: ₹3 lakh for crop-related expenses + ₹2 lakh for allied agricultural activities

• Interest Rate: 7% per annum

• Government Benefits:

  • 2% interest subsidy from the government

  • 3% rebate for timely repayment

• Effective Interest Rate: Only 4% per annum after subsidies and rebates

This makes KCC one of the cheapest agricultural loans available in India today.

Who Can Apply for Kisan Credit Card?

The scheme covers a wide range of beneficiaries, including:

1. Small and marginal farmers

2. Landless agricultural labourers

3. Individuals engaged in animal husbandry, fisheries, silk production, horticulture, and dairy farming

4. Self-Help Groups (SHGs) and Joint Liability Groups (JLGs)

Required Documents for KCC Application

Applicants need to provide valid identification and address proof, which can include:

• Voter ID card

• PAN card

• Aadhaar card

Banks may also request additional documents depending on the applicant’s profile.

How to Apply for Kisan Credit Card Online

1. Visit the official website of your preferred bank.

2. Locate the Kisan Credit Card section on the homepage.

3. Click on the ‘Apply’ option.

4. Fill in the required details on the application form.

5. Submit the form online.

6. Note down the application reference number generated.

7. If eligible, the bank will contact you within 5 working days for further processing.

Why KCC is a Game-Changer for Farmers

The Kisan Credit Card scheme not only provides quick and affordable credit but also ensures that farmers can focus on increasing productivity instead of worrying about debts. With the effective interest rate reduced to just 4%, it offers a secure, transparent, and farmer-friendly alternative to private moneylenders.

If you are eligible and have not yet applied, this is the right time to take advantage of the Kisan Credit Card Yojana and strengthen your agricultural ventures.