Calculate your KCC eligible loan limit and repayment under the Kisan Credit Card scheme. See interest at 7% rate and 4% effective rate after government subsidy.
Kisan Credit Card (KCC) is a government scheme that provides short-term formal credit to farmers for agricultural needs at subsidized interest rates. Farmers can use it like a credit card or withdraw cash for purchasing seeds, fertilizers, pesticides, and other inputs.
The KCC interest rate is 7% per annum. However, if the farmer repays within 1 year, the government provides a 3% interest subvention, making the effective rate just 4% per annum. This makes KCC one of the cheapest sources of agricultural credit.
Scale of Finance (SoF) is the credit limit fixed per crop per acre/hectare by the State Level Bankers Committee (SLBC). It is based on crop-wise input costs including seeds, fertilizers, irrigation, and labor. SoF varies by state and crop.
KCC limit = (Scale of Finance × Area × No. of crops per year) + 10% for post-harvest/household expenses + 20% for farm asset maintenance. The limit increases by 10% each year for renewal. Maximum limit for short-term loans is ₹3 lakhs under interest subvention scheme.
Documents required for KCC: Aadhaar card, PAN card, land records (Khasra/Khatauni), passport-size photos, bank account details, and a filled application form. Apply at your nearest bank branch — all scheduled commercial banks, RRBs, and cooperative banks offer KCC.
The Kisan Credit Card (KCC) scheme was introduced in 1998-99 on the recommendations of the R.V. Gupta Committee and NABARD, with the objective of providing timely and adequate credit to farmers for their agricultural operations. Over 7 crore active KCC accounts exist today, making it one of the world's largest targeted agricultural credit programmes.
The headline interest rate on KCC is 7% per annum. However, the government provides a 2% interest subvention, bringing the effective rate to 5%. Farmers who repay on time get an additional 3% prompt repayment incentive, reducing the effective rate to just 4% per annum — one of the lowest credit rates available in India for any borrower category.
The credit limit is determined by the bank based on the scale of finance for the crop (set by the District Level Technical Committee — DLTC), the land holding, and the farmer's credit history. Typically it covers: cost of cultivation for one season × number of crop seasons + 10% for post-harvest expenses + 20% for farm maintenance. Our calculator estimates the limit based on these standard NABARD norms.
All KCC holders are automatically enrolled in the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Weather-Based Crop Insurance. The insurance premium is deducted directly from the KCC account — typically very small (1.5–2% for Kharif crops, 1% for Rabi). This covers losses due to floods, drought, pest attacks, and other calamities.