Kisan Credit Card (KCC) 2026: 4% Interest, up to ₹5 Lakh — Full Guide
The Kisan Credit Card (KCC) gives low-cost credit for crops, animal husbandry and fisheries. Up to ₹3 lakh at 7% interest, with a 3% incentive for timely r
The Kisan Credit Card (KCC) gives low-cost credit for crops, animal husbandry and fisheries. Up to ₹3 lakh at 7% interest, with a 3% incentive for timely repayment — an effective 4%. The interest-subvention limit has been raised to ₹5 lakh, and up to ₹2 lakh needs no collateral. The card is valid for up to 5 years.
01How much loan, at what interest?
| Item | Under KCC |
|---|---|
| Interest rate (up to ₹3 lakh) | 7% |
| Timely repayment incentive | 3% |
| Effective interest | 4% |
| Interest subvention limit (MISS) | Up to ₹5 lakhearlier ₹3 lakh; PIB March 2026 |
| Collateral-free loan | Up to ₹2 lakhfrom 1 January 2025 |
| Animal husbandry / fisheries | Up to ₹5 lakhearlier ₹2 lakh |
| Card validity | Up to 5 years |
Confirm with your bank how the subvention applies to the ₹3–5 lakh portion.
02Example: ₹3 lakh KCC loan for 1 year
| Situation | Yearly interest |
|---|---|
| At 7% (not repaid on time) | ₹21,000 |
| At 4% (repaid on time) | ₹12,000 |
| Saving | ₹9,000 |
Simple maths: ₹3,00,000 × 7% = ₹21,000; × 4% = ₹12,000. Repaying on time is the real benefit.
03Who can get it?
- Farmers who own land
- Tenant farmers and sharecroppers
- Self Help Groups (SHGs) and Joint Liability Groups (JLGs)
- Livestock farmers (dairy, goat, poultry) and fish farmers
04Documents needed
- Land records, or proof of tenancy/sharecropping
- Details of crops grown / number of animals
- Aadhaar, PAN and photo
- A simple one-page form for PM-KISAN beneficiaries (on the PM-KISAN portal)
- Choose a bank: A public sector, regional rural or co-operative bank branch near you.
- Fill the form: Submit the KCC form with documents.
- Limit is set: The bank fixes the limit based on land, crops and animals.
- Card: After approval, draw money with the RuPay KCC card and repay on time.
05KCC or business loan — what is the difference?
KCC is for running costs — crop inputs, animal feed and medicine, fish feed. To build a shed, buy machines or set up a processing unit you need a term loan with a government scheme such as AIF, PMFME, PMEGP or PMMSY. Many businesses use both: the unit on a term loan, daily costs on KCC.
06Frequently asked questions
What is the interest rate on KCC?
7% up to ₹3 lakh; with a 3% incentive for timely repayment, the effective rate is 4%.
How much KCC loan is collateral-free?
Up to ₹2 lakh without collateral, from 1 January 2025.
Is KCC available for animal husbandry and fisheries?
Yes. KCC covers running costs of dairy, goat, poultry and fish farming; the limit has been raised to ₹5 lakh.
Can I use KCC to buy machines or set up a unit?
No, KCC is for running costs. For a unit, take a term loan with a scheme like AIF, PMFME or PMEGP.
What happens if I do not repay KCC on time?
You lose the 3% incentive, pay more interest and your CIBIL score suffers — the next loan becomes harder.
KCC — next step?
Tell us your district and budget — an expert will suggest the next step for free.
Talk on WhatsApp+91 90961 12806All business opportunities →Last checked: 05-10-2026. Scheme rules can change; confirm with the bank/official portal before applying. The bank decides the loan/subsidy; we prepare you for it.
Utkrishi Team
Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 90961 12806