Kisan Credit Card Loan 2026: Limit, 4% Rate, How to Apply

A Kisan Credit Card (KCC) is a revolving farm loan from a bank that covers crop costs, allied activities like dairy or fisheries, post-harvest needs and small farm investments, with a RuPay card to withdraw money as needed. Short-term crop borrowing on a KCC carries 7% interest, which falls to an effective 4% if you repay on time, and loans up to ₹2 lakh need no collateral. You apply with a one-page form at any bank branch, Regional Rural Bank or co-operative bank, or through the PM-Kisan portal.

All terms below are as of October 2026. Two changes are moving through the system this year: the government has announced a higher ₹5 lakh limit for the interest concession, and RBI has issued new KCC Directions that apply to loans sanctioned from 1 January 2027. Both are explained below.

Who can get a Kisan Credit Card

According to RBI and the Ministry of Agriculture, KCC is open to:

• Owner cultivators, individually or jointly.
• Tenant farmers, oral lessees and sharecroppers, who do not own the land they farm.
• Self-help groups (SHGs) and joint liability groups (JLGs) of farmers, including groups of tenant farmers.
• Farmers in allied activities: animal husbandry, dairy, poultry, fisheries and aquaculture, also eligible since 2018-19.

Banks set their own age rules, typically requiring a co-borrower or legal heir as joint borrower for older applicants. Your CIBIL record is checked too, so an old default or settlement can slow approval. You can check it free before applying; see how to check your CIBIL score free.

KCC interest rate and the 4% effective rate

The rate comes from the government's Modified Interest Subvention Scheme (MISS), which pays banks so they can lend cheaply. As approved for 2025-26 and continued since:

The Union Budget 2025-26 announced that the loan limit under MISS would rise from ₹3 lakh to ₹5 lakh for KCC loans, and a March 2026 PIB backgrounder says the limit has been enhanced. The same document still describes the 7% rate on loans up to ₹3 lakh, and banks have applied the change unevenly. If your limit is above ₹3 lakh, ask your branch in writing what rate applies to the part between ₹3 lakh and ₹5 lakh. Our guide to the KCC interest subvention scheme covers how the incentive is credited.

Borrowing above the concessional limit, or for long-term investment, is charged at the bank's normal agricultural lending rate.

How the KCC limit is calculated

Under the RBI KCC guidelines in force for loans sanctioned before 1 January 2027, banks work out the limit in steps:

1. Crop finance: scale of finance for the crop (fixed each year by the District Level Technical Committee) × area cultivated.
2. Plus 10% of that for post-harvest, household and consumption needs.
3. Plus 20% for repairs and maintenance of farm assets.
4. Plus crop insurance, accident insurance and asset insurance premiums where applicable.
5. Each later year, the limit rises by 10% for cost escalation, over the validity of the card.

Long-term investment needs, such as a pump set or dairy animals, are added as a term loan within the composite limit. The PIB backgrounder describes the composite limit as fixed for five years.

Worked example (illustrative)

Suresh grows wheat on 2 hectares. Assume the district scale of finance is ₹60,000 per hectare. These figures are only for illustration; your district's numbers will differ.

If Suresh draws ₹1,50,000 for one year and repays on time:

• Interest at 7%: ₹1,50,000 × 7% = ₹10,500
• Prompt repayment incentive at 3%: ₹1,50,000 × 3% = ₹4,500 credited back
• Net cost: ₹10,500 − ₹4,500 = ₹6,000, which is 4%

Because a KCC is a cash-credit account, interest is charged only on the amount drawn and for the days it is outstanding. Drawing ₹50,000 in June and the rest in November costs less than drawing the full limit on day one. For a term loan inside the KCC repaid in instalments, you can check the schedule with the EMI calculator.

What changes from 1 January 2027

RBI issued its final Kisan Credit Card Directions, 2026 in June 2026 for commercial banks, small finance banks, Regional Rural Banks and rural co-operative banks. Key points:

• Effective date: KCC loans sanctioned from 1 January 2027. Loans sanctioned earlier continue under the old guidelines until maturity or the next renewal.
• Six-year tenure: the composite KCC limit runs for six years instead of five.
• Standard crop seasons: 12 months for short-duration crops and 18 months for long-duration crops, which sets repayment due dates.
• Marginal farmers: a flexible limit of ₹10,000 to ₹50,000 based on the bank's assessment, not linked to land value.
• Collateral: unchanged at ₹2 lakh collateral-free.

Collateral-free limit

Banks must waive collateral security and margin for agricultural loans, including allied activities, up to ₹2 lakh per borrower, a limit raised from ₹1.6 lakh from 1 January 2025. Where the bank has a recovery tie-up against hypothecated crop or stock, it can lend up to ₹3 lakh without collateral. A farmer may still pledge gold voluntarily; see agriculture gold loan for how that works.

Documents needed

• Filled one-page KCC application form.
• Identity and address proof: Aadhaar, voter ID, PAN or other officially valid document.
• Land records: record of rights, khatauni or 7/12 extract, depending on your state.
• For tenant farmers: lease deed, tenancy certificate or local authority certificate as accepted by the bank.
• Crop and area details for the season, or details of the dairy, poultry or fisheries activity.
• Passport-size photographs.

The IBA has advised banks to waive processing, documentation and inspection charges on KCC loans up to ₹3 lakh. This is an advisory, not a rule, so check your bank's schedule of charges.

How to apply for a Kisan Credit Card

1. Get the form. Download the one-page KCC form from pmkisan.gov.in, the Department of Agriculture website or your bank's website. If you receive PM-Kisan, some details may come pre-filled from bank records.
2. Choose a branch. Apply at the branch where you hold your savings account, ideally one that serves your village. A Common Service Centre (CSC) can help fill and send the form digitally.
3. Attach documents listed above and submit.
4. Field verification. The bank checks land records and crops, and may visit.
5. Sanction and card. The bank fixes the limit, opens the KCC account and issues a RuPay KCC card.
6. Insurance. Crop insurance under Pradhan Mantri Fasal Bima Yojana is offered with the loan. Since 2020 it is voluntary; you can opt out with a written declaration before the cut-off.

Nothing in this process requires paying an agent. The form and the application are free.

Common rejection reasons

• Land or tenancy proof missing or not matching the crop declared.
• Existing overdue farm loan in the same or another bank. Clear it or seek restructuring first.
• Poor credit history, such as a written-off or settled loan.
• Duplicate KCC in another bank. A farmer should hold only one KCC.
• Area outside the branch's service area.

How to complain

1. Write to the branch manager, keeping a copy with the date.
2. If there is no reply in 30 days, use the bank's grievance redressal officer or nodal officer (details on the bank's website).
3. If still unresolved, file a complaint with the RBI Integrated Ombudsman at cms.rbi.org.in. See bank not resolving complaint.
4. For co-operative banks, also inform the District Central Co-operative Bank or NABARD regional office.

If a crop fails and you cannot repay, ask in writing about restructuring under RBI's natural calamity norms; read loan restructuring options.

Key takeaways

• A KCC is a revolving farm loan for crops, allied activities and household needs, with a RuPay card.
• Short-term borrowing costs 7%, or 4% effective if you repay on time; confirm with your bank how the announced ₹5 lakh limit applies.
• The limit is based on scale of finance × area, plus 10% and 20% margins, rising 10% a year.
• No collateral is needed up to ₹2 lakh, or ₹3 lakh with a crop-recovery tie-up.
• RBI's new KCC Directions, with a six-year tenure, apply to loans sanctioned from 1 January 2027.
• Apply free at your bank branch, a CSC or via the PM-Kisan portal form; never pay an agent.