Kisan Credit Card Loan, Limit Increase From ₹3 Lakh to ₹5 Lakh, Check Steps To Apply

The Kisan Credit Card (KCC) Loan Scheme is a revolutionary initiative introduced in 1998 by the Government of India to provide affordable and timely credit to farmers. This scheme aims to reduce farmers’ dependency on informal moneylenders who charge exorbitant interest rates. Designed to meet the diverse financial needs of farmers, the KCC loan covers expenses related to crop cultivation, post-harvest activities, allied agricultural activities, and even household consumption. Over the years, the scheme has evolved significantly, with enhancements in loan limits, interest subsidies, and inclusivity.

The recent Union Budget 2025 further strengthened the KCC scheme by increasing the loan limit from ₹3 lakh to ₹5 lakh and extending its benefits to an additional 10 million farmers. This expansion reflects the government’s commitment to empowering rural communities and ensuring food security.

Below is a detailed exploration of the Kisan Credit Card Loan Scheme, including its features, eligibility criteria, application process, benefits, and recent updates.

Kisan Credit Card Loan 2025

Also Read

Indiramma Housing Yojana 2025, Financial Assistance To Individual To Construct Homes

Key Features of Kisan Credit Card Loan

• Affordable Interest Rates: Farmers can avail loans at interest rates ranging from 2% to 7%, depending on their repayment history and loan amount.
• Flexible Repayment Schedule: The repayment period aligns with crop harvesting cycles, ensuring convenience for farmers.
• Insurance Benefits: The scheme includes crop insurance against natural calamities and personal accident insurance for permanent disability or death.
• Collateral-Free Loans: Loans up to ₹1.6 lakh do not require any collateral.
• High Loan Limits: As of 2025, farmers can borrow up to ₹5 lakh under the revised guidelines.
• Simple Interest for Timely Payments: Farmers who repay on time are charged simple interest instead of compound interest.
• Multi-Purpose Usage: Funds can be used for crop production, post-harvest expenses, marketing needs, farm equipment maintenance, and household consumption.

Eligibility Criteria For Kisan Credit Card loan

1. Age Limit:
   • Minimum: 18 years
   • Maximum: 75 years (for borrowers above 60 years, a co-borrower is mandatory).
2. Eligible Beneficiaries:
   • Individual farmers or joint cultivators who own or lease land.
   • Tenant farmers and sharecroppers.
   • Self-Help Groups (SHGs) or Joint Liability Groups (JLGs).
   • Farmers engaged in allied activities like dairy farming, poultry farming, fisheries, etc.
3. Additional Requirements:
   • Proof of landholding or lease agreement.
   • Valid identification documents such as Aadhaar card or voter ID.

Documents Required

• Completed application form with recent passport-sized photographs.
• Proof of identity (Aadhaar card, PAN card, voter ID).
• Proof of address (utility bills or Aadhaar card).
• Land records or lease agreements certified by revenue authorities.
• Bank statements or income proof for self-employed applicants.

How to Apply For The Kisan Credit Card Loan?

Online Application:

1. Visit the official website of your preferred bank or PM-Kisan Portal.
2. Select the “Kisan Credit Card” option and fill out the application form.
3. Upload the required documents and submit your application.
4. Upon verification, your application will be processed within a few days.

Offline Application:

1. Visit your nearest bank branch offering KCC loans.
2. Collect the application form and attach all required documents.
3. Submit the form at the branch for processing.
4. Once approved, you will receive your Kisan Credit Card.

Benefits of Kisan Credit Card Loan

1. Financial Inclusion: The scheme ensures that even marginal farmers have access to formal credit facilities.
2. Low-Cost Loans: With government subsidies on interest rates, loans are highly affordable.
3. Convenient Access: Farmers can withdraw funds using their KCC cards at ATMs or micro-ATMs.
4. Insurance Protection: Coverage against crop failure due to natural disasters provides financial security.
5. Ease of Renewal: Cards are valid for five years with annual reviews allowing adjustments based on changing needs.

Also Read

Maiya Samman Yojana 2025, ₹2,500 Per Month To Women Of Jharkhand, Check Steps To Apply

Recent Updates in Budget 2025

• The maximum loan limit was increased from ₹3 lakh to ₹5 lakh.
• An additional 10 million farmers were brought under the scheme’s coverage.
• Enhanced focus on allied agricultural activities like fisheries and animal husbandry.

Comparison: Old vs New Features

Conclusion

The Kisan Credit Card Loan Scheme is a lifeline for millions of Indian farmers, providing them with timely financial support at affordable rates. By addressing both short-term and long-term agricultural needs, this scheme plays a vital role in boosting agricultural productivity and rural development.

With recent enhancements like increased loan limits and expanded coverage under Budget 2025, the scheme continues to evolve as a robust tool for empowering India’s farming community. Farmers are encouraged to leverage this initiative not only for cultivation but also for allied activities like dairy farming and fisheries, ensuring holistic growth in rural economies.

For more information on how you can benefit from this scheme or apply for a Kisan Credit Card loan today, visit your nearest bank branch or explore government portals like PM-Kisan!