Kisan Credit Card (KCC)

Source: Reserve Bank of India Master Circular.

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.

Applicability of the Scheme

The Kisan Credit Card Scheme is to be implemented by Commercial Banks, Regional Rural Banks, Small Finance Banks and Cooperatives.

Objective / Purpose

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers for their cultivation and other needs as indicated below:

  1. To meet the short term credit requirements for cultivation of crops;
  2. Post-harvest expenses;
  3. Produce marketing loan;
  4. Consumption requirements of farmer household;
  5. Working capital for maintenance of farm assets and activities allied to agriculture;
  6. Investment credit requirement for agriculture and allied activities.

Eligibility

i. Farmers – individual/joint borrowers who are owner cultivators;

ii. Tenant farmers, oral lessees & share croppers;

iii. Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc.

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