Kisan Credit Card (KCC) 2026: Loan up to Rs 5 Lakh at 7% and New Rules From January 2027
KCC gives farmers a crop loan up to Rs 5 lakh. Eligible short-term loans up to Rs 3 lakh carry 7% interest, and on-time repayment brings a 3% incentive, making it about 4%. Loans up to Rs 2 lakh need no collateral.
Latest Update
- New RBI rules: The KCC Directions 2026 apply to loans sanctioned from 1 January 2027. Older loans follow current rules until maturity or renewal.
- What changes: Six-year composite facility, short-term plus investment credit, and collateral waiver up to Rs 2 lakh (up to Rs 3 lakh where crops are hypothecated and tie-up recovery exists).
- Note: Final rate, limit and charges are decided by your bank. Confirm at your branch.
Scheme at a Glance
| Item | Details |
|---|---|
| Scheme name | Kisan Credit Card (KCC) |
| Started | August 1998 |
| Crop loan limit | Up to Rs 5 lakh |
| Interest | 7% on eligible short-term loans up to Rs 3 lakh |
| Prompt repayment incentive | 3% (effective about 4%) |
| No collateral | Up to Rs 2 lakh per borrower |
| Validity | 5 years now; 6 years from 1 Jan 2027 |
| Apply mode | Bank branch, bank website or KRISHIKA app |
Interest Subvention Limits
| Component | Maximum limit |
|---|---|
| Crops and post-harvest expenses | Rs 3 lakh |
| Allied activities (dairy, fisheries, sericulture, bee-keeping, lac, mulberry) | Rs 2 lakh within the Rs 3 lakh ceiling |
What Changes From 1 January 2027
| Point | New rule |
|---|---|
| Tenure | Six-year composite facility |
| Credit type | Working capital and investment credit |
| Collateral waiver | Up to Rs 2 lakh; up to Rs 3 lakh with hypothecation and tie-up |
| Marginal farmers | Flexi KCC Rs 10,000 to Rs 50,000 |
| New expenses | Soil testing, weather advisory, digital services, organic certification |
| Land records | One-time documentation for fresh KCC |
| Sharecroppers | Local body certificate; affidavit up to Rs 50,000 |
Key Benefits
- Flexible credit for crops, post-harvest, marketing and farm upkeep.
- Allied activities such as dairy, fisheries, poultry, beekeeping and sericulture.
- RuPay Kisan card for ATM, PoS and branch withdrawals.
- Term loans for farm investments.
- Interest support on restructured loans after natural calamities.
- Marginal farmers: Flexi KCC for small needs like mini dairy or backyard poultry.
Who Is Eligible
- Owner cultivators, individual or joint.
- Tenant farmers, oral lessees and sharecroppers.
- Eligible Self Help Groups and Joint Liability Groups.
- One Farmer-One KCC: only one KCC account per farmer.
- Aadhaar or enrolment number needed for subvention and incentive, subject to exemptions.
Documents Required
- Identity proof (Aadhaar, Voter ID, Passport or Driving Licence)
- Address proof
- Two passport-size photos
- Land records or tenancy certificate
- Crop details
- Papers for allied activity, if any
- Any extra paper asked by the bank
How to Apply
- Visit a bank branch (public, private, small finance, RRB or cooperative) or its website, or use the KRISHIKA app.
- Fill the KCC form with land, crop or allied activity details.
- Attach land record or tenancy certificate, Aadhaar and photos.
- Bank verifies and fixes your limit by Scale of Finance.
- Receive the RuPay Kisan Credit Card.
- Repay on time to earn the 3% incentive; update crop details each season.
Important Government Links
Use these official sites for forms and updates. Links may change, so verify on the portal.
Helpline and Contact
Kisan Call Centre1800-180-1551
CSC toll free1800-121-3468
NABARD022-26539895
Frequently Asked Questions
Is collateral needed?
- Not up to Rs 2 lakh.
When do the new rules start?
- For loans sanctioned from 1 January 2027.
How many KCCs can I have?
- One per farmer.
Disclaimer
- Emitrawala.com is not a government website. This page is for information only and is written in our own words.
- Rules, amounts and dates can change. Always confirm on the official portal or at the concerned office before applying.
- Do not pay anyone extra for a government benefit. Apply only through official channels.
Need Help?
If you need help with the form, documents or formalities for this scheme, contact Emitrawala.com. Our team will be happy to help you.
