Kisan Credit Card Scheme: Avail ₹5 Lakh Loan at 4% Interest – Step-by-Step Guide

Individual farmers with ownership of land, tenant farmers, sharecroppers, oral lessees, Joint liability groups (JLGs), and self-help groups (SHGs) can get up to ₹2 Lakh collateral-free loan under the Kisan Credit Card (KCC) Scheme.

The Uttar Pradesh Government has launched a special enrollment drive to help medium- and small-scale farmers take advantage of this scheme. The scheme is designed to help them access funds for agricultural inputs, such as seeds, fertilisers, and pesticides. 

The scheme also allows for the withdrawal of cash for production needs. Over the years, it has evolved to include investment in allied and non-farm activities (2004) and was simplified further in 2012 to incorporate Electronic Kisan Credit Cards.

Let’s break down the benefits, process, and essential information for farmers looking to avail up to ₹5 lakh in credit under this scheme, with interest rates as low as 4% per annum.

Interest Rate and Charges on Kisan Credit Card Scheme
 

One of the most attractive features of the KCC scheme is its low interest rate. The government extends support to reduce the financial burden on farmers, especially for timely repayment.
 

*Note: For interest subvention, Aadhaar submission is mandatory wherever applicable.

Benefits of Kisan Credit Card Scheme – Special Enrollment Campaign in UP Till July 31st
 

The government is currently running a special KCC enrollment drive in Uttar Pradesh until July 31st, with enhanced benefits for farmers.
 

This makes it one of the most affordable agricultural credit options available to farmers.

Kisan Credit Card at SBI – Features and Structure
 

State Bank of India (SBI) is among the leading banks implementing the KCC scheme with farmer-centric features.
 

As of July 2025, there are over 7.75 crore active KCC accounts across India. The scheme has got the farmers’ trust, as the scheme has scaled from ₹4.26 lakh crore in 2014 to ₹10.05 lakh crore in 2024.

Eligibility Criteria for Kisan Credit Card
 

KCC is not limited to just land-owning farmers. Here is a list of eligible applicants:

• Individual farmers and joint borrowers who are owner-cultivators
   
• Tenant farmers, oral lessees, and sharecroppers
   
• Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) including non-owner cultivators

Based on your agricultural needs, banks help you decide between a ‘Short-Term Loan’ or a ‘Term Loan.’ If the farmer has crop-related expenses, for example, purchasing seeds, fertilisers, or post-harvest expenses, then a short-term loan is preferred. 

However, if the farmer wants to buy tractors, irrigation systems, or expensive farm tools, then a term loan is more suitable.

Documents Required for Kisan Credit Card Scheme
 

To apply for a Kisan Credit Card, the following documents are generally required:

• Duly filled application form
   
• Proof of identity: Aadhaar card, Voter ID, PAN, Driving License
   
• Proof of address: Utility bills, Aadhaar, ration card
   
• Land documents: Proof of ownership or tenancy agreement
   
• Passport-sized photographs
   
• Bank passbook or account details

Application Process for Kisan Credit Card

Farmers can apply both online and offline, depending on their comfort and access to technology.

Online Process
 

1. Visit the official website of the bank (e.g., SBI: Kisan Credit Card – SBI).
    
2. Click on the ‘Application Form’ option on the left-hand side of the page and fill in the necessary details.
    
3. Upon submission, an application reference number will be generated.
    
4. The bank will verify and process the application within 3–4 working days, if eligible.

Offline Process
 

1. Visit the nearest branch of your bank or download the KCC form from its official website.
    
2. Submit the form along with the required documents to the bank officer.
    
3. The bank will guide you through the eligibility and documentation process.
    
4. On approval, the credit card and loan details will be issued.
    

For official scheme guidelines, you can refer to the RBI Notification on KCC.

What is the Loan Limit in the Kisan Credit Card Scheme?
 

The loan limit under KCC is calculated based on several factors, including:

• Type and scale of crop cultivation
   
• Cost of production
   
• Size of landholding
   
• Insurance and equipment maintenance needs

Loans up to ₹2 lakh are collateral-free, while higher amounts may require security as per the bank’s policy. Typically, the loan limit is reviewed annually, and it may increase by 10% each year over a five-year cycle.

Conclusion

The Kisan Credit Card scheme does a great job of offering affordable financial aid to farmers. With the special drive underway in UP till July 31st, it’s an opportune moment for farmers to avail themselves of the benefits, especially the 4% effective interest rate for those who repay on time.

For millions of small and marginal farmers, the KCC is more than a credit instrument; it’s a support system that secures their livelihood and promotes financial inclusion.

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