Kisan Credit Card

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Kisan Credit Card

The farmer in India has to face many difficulties to arrange short-term funds that’s why Reserve Bank of India and NABARD has launched Kisan credit card in 1998. Earlier farmers had to take loans from informal lenders for agriculture and they used to charge such a high-interest rate on Borrowed Amount and it was difficult for the farmers to return the borrowed amount. Commercial banks, regional rural banks (RRBs) and cooperative banks offer Kisan credit card.

Benefits and features of Kisan credit card:-

  • You do not have to bother much to apply it, the process of applying it is very simple and easy.
  • It requires just a few basic documents to apply and its tenure is also flexible.
  • Its interest rate is so low that farmers can easily pay back the borrowed amount.
  • Its features have been made so simple and easy that even a less educated or uneducated person can easily use it.
  • This can be availed not only for agriculture but also for fisheries.
  • This credit card is valid for 5 years, so farmers can take a loan of up to 3 lakhs anytime in these 5 years.
  • Farmers also get discounts from merchants or dealers by using this credit card.
  • There is an option to choose a single credit loan facility or term loan.
  • You do not have to have your own field to apply it if you also cultivate someone else’s land, then you can apply for it.
  • It gives insurance coverage in case of natural disaster or pest disease outbreak.

Types of the loan offered by Kisan Credit card:-

There are two types of loan provided by the Kisan Credit card

  1. Cash credit
  2. Term loan

Cash credit:-

In this type of loan, you can take a loan of up to 3 lakhs, which you have to repay within 1 year in case you pay back the amount before one-year completion then you will get some discount on the interest rate.

Term loan:-

A term loan is given for investment credit but it can be also used for crop cultivation, buying equipment, irrigation, etc.

Who are eligible for applying Kisan credit card:-

  • All farmers who are either individuals/Joint borrowers of the land and involved in farming or allied activities
  • Individuals who are owner cum cultivators
  • All the Tenant farmers or Oral lessees and Share Croppers in the agricultural land
  • Self Help Groups or Joint Liability Groups including tenant farmers or sharecroppers.
  • Farmers should be eligible for a production credit of Rs.5,000 and above, and then he/she is entitled to a Kisan Credit Card.
  • All such farmers who are eligible for short term credit loan towards crop production or any allied activities as well as non-farm activities.
  • The farmers should be the residents of the bank’s operational area.

Document required for Kisan credit card:-

  • Identity proof– Aadhar card/ Voter ID card/ Driving Licence etc
  • Address proof- Aadhar card/ Voter ID card/ Driving licence or any other govt. id
  • Passport size two Photographs
  • Fully filled the application form in an appropriate manner

How to apply for Kisan credit card online:-

  • Go to the or the official bank website by which you want to take credit card
  • Select the Kisan credit card from the available option
  • Fill the application form and submit it with the required documents
  • After submitting the form you will receive an application reference number on the screen note it down.

List of banks which provide Kisan credit card:-

  • State Bank Of India
  • Axis Bank
  • Bank Of India
  • Cooperative Bank
  • National Payments Corporation of India (NPCI)
  • National Bank for Agriculture and Rural Development (NABARD)
  • Industrial Development Bank of India (IDBI)
  • Punjab National Bank
  • ICICI Bank

Interest rates and charges for the Kisan credit card:-

Bank Name Interest Rates Tenure
State Bank Of India (SBI)  7% per annum  5 years
Axis Bank 7% per annum 5 years
Bank Of India (BOI) 7% per annum 5 years
Cooperative Bank 7% per annum 5 years
National Payments Corporation of India (NPCI) 7% per annum 5 years
National Bank for Agriculture and Rural Development (NABARD) 7% per annum 5 years
Industrial Development Bank of India (IDBI) 7% per annum 5 years
ICICI Bank 7% per annum 5 years
Punjab National Bank (PNB) 7% per annum 5 years


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