Get A Loan Of ₹5 Lakh Without Security Through Kisan Credit Card, Check Full Details

The central government continues to introduce new measures to strengthen the financial condition of farmers and rural households. One of the most important tools for providing affordable credit to farmers is the Kisan Credit Card, often called KCC. Under this scheme, farmers receive timely and convenient access to short term loans for agricultural and allied activities.

In the Union Budget for 2025 26, the government has further expanded the scope of KCC loans. The maximum limit under the MISS framework for short term agricultural credit has been raised from ₹3 lakh to ₹5 lakh. This is a significant step toward increasing investment in farming and boosting production capacity in the agriculture sector.

With this change, eligible farmers can now access loans up to ₹5 lakh, often without the need for traditional security, subject to bank guidelines and scheme rules. The loan comes at a concessional interest rate, with additional subsidies and rebates for those who repay on time.

What Is The Kisan Credit Card Scheme

The Kisan Credit Card scheme is a government backed initiative designed to give farmers easy and flexible access to credit for their day to day agricultural requirements. Instead of taking a separate loan every season, farmers can use a single revolving credit facility to meet various needs such as

• Purchase of seeds and fertilisers
• Buying pesticides and farm inputs
• Payment of labour costs
• Expenses for irrigation and machinery repair
• Feed and medicines for livestock and dairy animals

The KCC works somewhat like an overdraft or credit line. The bank sanctions a credit limit based on the landholding, cropping pattern, scale of finance and repayment capacity of the farmer. Within this limit, the farmer can withdraw and repay multiple times during the season. Interest is charged only on the amount actually used.

Short Summary Table

New Loan Limit Of ₹5 Lakh Under MISS

Earlier, the Kisan Credit Card typically allowed short term agricultural loans up to a maximum of ₹3 lakh. Under the revised arrangement announced in the 2025 26 budget, this limit has been increased to ₹5 lakh for eligible farmers under the MISS framework.

This higher limit offers several advantages

1. More working capital
   Farmers can invest more in quality seeds, fertilisers and modern agriculture equipment, which can improve crop yield and income.
2. Support for allied activities
   Many farmers are engaged in dairy, poultry, fisheries and other allied sectors. The increased limit gives them more credit for feed, medicines and expansion.
3. Reduction in dependence on informal lenders
   With greater access to formal credit at reasonable interest rates, farmers are less likely to rely on moneylenders who often charge very high rates.

Interest Rate And Subsidy Structure

The Kisan Credit Card scheme not only increases the loan limit but also provides an attractive interest structure.

• The basic interest rate on KCC loans is around 7 percent per annum.
• The government provides an interest subsidy of 1.5 percent, which is directly paid to the bank on behalf of the farmer.
• In addition, if the farmer repays the loan amount within the specified time, they receive a further interest rebate of 3 percent.

When both benefits are applied, the effective interest rate for a farmer who repays on time can come down to only 4 percent per annum.

This low effective interest rate makes KCC one of the most affordable ways for farmers to finance their short term agricultural needs. It encourages prompt repayment and builds a healthy credit history for the farmer.

Who Is Eligible For A Kisan Credit Card

The Kisan Credit Card scheme is designed to cover a wide set of beneficiaries connected to agriculture and allied activities. Eligibility includes

1. Cultivating farmers
   • Individual farmers who own or cultivate agricultural land.
   • Joint borrowers who own land collectively and farm together.
2. Tenant farmers and sharecroppers
   • Farmers who cultivate land on lease or sharecropping basis are also eligible, subject to proof and local bank policies.
3. Livestock and dairy farmers
   • Individuals engaged in cattle rearing, dairy farming, goat rearing and similar activities.
4. Poultry and piggery farmers
   • Farmers running poultry units or piggery units for commercial purposes.
5. Fishermen and boat owners
   • Licensed fishermen and small boat owners involved in inland or marine fishing, fish rearing and related activities.
6. Small and marginal farmers
   • Special emphasis is given to small and marginal farmers who form a large portion of the rural population and often face difficulty getting credit from other sources.

Because of this wide coverage, almost every category of farmer involved in agriculture, animal husbandry or fisheries can benefit from the KCC scheme if they meet the basic criteria set by the lending bank.

Documents Required For KCC Application

When applying for a Kisan Credit Card, farmers need to submit certain documents to the bank. These help confirm identity, address and eligibility. Commonly required documents include

1. Identity proof
   • Aadhaar card
   • Voter ID card
   • PAN card
   • Any other government approved identity document
2. Address proof
   • Aadhaar card
   • Voter ID with address
   • Utility bill, ration card or similar document accepted by the bank
3. Photographs
   • Passport size photographs of the applicant
4. Land and cultivation details
   • Documents related to land ownership, lease agreement, or cultivation rights, depending on the category of farmer
5. Bank account details
   • Existing savings account information, if the farmer already has an account with the bank

The exact list can vary somewhat between banks, but identity and address proof are mandatory in all cases.

Step By Step Application Process For Kisan Credit Card

One advantage of the scheme is that the application process has been made simple and farmer friendly. In many cases, farmers can start the process from home and only visit the bank with completed documents.

Step 1: Download The KCC Application Form

1. Visit the official PM Kisan website or the relevant government portal.
2. Look for the Kisan Credit Card application section.
3. Download and print the KCC application form.

Step 2: Fill In The Application Form

1. Enter personal details such as name, address, age and contact number.
2. Provide information about landholding, type of crops and allied activities.
3. Mention existing bank account details if any.
4. Specify the required credit limit based on the farm needs.

Step 3: Attach Required Documents

1. Attach photocopies of identity proof and address proof.
2. Add land related documents, lease papers or any other eligibility proof.
3. Keep original documents ready for verification at the bank.

Step 4: Submit The Form To The Bank

1. Visit the nearest branch of a bank that offers Kisan Credit Card facilities, such as public sector banks, private banks or regional rural banks.
2. Submit the completed form along with documents to the bank official.
3. The bank will verify the information, conduct field verification if needed and assess the credit limit.

Step 5: Approval And Card Issuance

1. Once the application is approved, the bank will open the KCC account and issue a card or passbook.
2. The approved limit can be used by the farmer to withdraw funds for agriculture and allied needs.
3. The farmer must repay the borrowed amount as per the schedule in order to enjoy the benefit of interest subsidy and repayment rebate.

How Farmers Can Use The KCC Loan

Under this enhanced scheme, farmers can use the Kisan Credit Card loan up to ₹5 lakh for a variety of purposes, such as

• Buying certified seeds, fertilisers and plant protection chemicals
• Paying wages to farm workers during peak seasons
• Repairing or hiring tractors, pump sets and agricultural machinery
• Meeting expenses for milk production, animal feed and veterinary care
• Managing input costs in poultry, fisheries and other allied sectors
• Handling urgent cash needs during crop failure or delayed payments

With a credit facility in place, farmers can plan their operations in a better way and avoid distress sales or high cost borrowing from informal sources.

Frequently Asked Questions

1. What is the maximum loan amount available under Kisan Credit Card now

Under the revised framework mentioned here, the short term loan limit under the Kisan Credit Card scheme has been increased from ₹3 lakh to ₹5 lakh for eligible farmers, subject to the bank’s assessment and scheme guidelines.

2. What interest rate will I pay on a KCC loan of ₹5 lakh

The basic interest rate on KCC loans is around 7 percent per annum. Farmers receive a 1.5 percent interest subsidy from the government, and those who repay on time get an additional 3 percent interest rebate, which can reduce the effective interest rate to around 4 percent.

3. Can tenant farmers and sharecroppers also apply for KCC

Yes, tenant farmers, sharecroppers and oral lessees can also apply for Kisan Credit Card, provided they are able to submit suitable proof of cultivation and meet the bank’s eligibility conditions.

4. Is security or collateral required for a KCC loan up to ₹5 lakh

The objective of the scheme is to provide easy and largely collateral free credit for genuine small and marginal farmers for their short term agricultural needs. However, the exact collateral requirement and documentation are decided by the individual bank based on scheme rules and risk assessment.

5. What can I use the KCC loan for

You can use the Kisan Credit Card limit for almost all short term agricultural and allied activities, including purchase of seeds, fertilisers, pesticides, animal feed, irrigation expenses, minor equipment repairs and working capital needs in dairy, poultry or fisheries. It is not intended for non agricultural personal expenses.

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