Kisan Credit Card (KCC)

The Kisan Credit Card (KCC) scheme was introduced in 1998 by the Government of India, the Reserve Bank of India (RBI), and the National Bank for Agriculture and Rural Development (NABARD) to rescue farmers from informal usurious moneylenders and ensure timely access to affordable institutional credit. KCC functions as a revolving cash credit facility tailored to the crop cycle and agricultural production needs. It covers short-term credit requirements for crop cultivation, purchase of fertilizers, seeds, and pesticides, post-harvest expenses, produce marketing loans, household consumption requirements of farmer families, and working capital for maintenance of farm assets and allied activities (dairy, poultry, fisheries, and animal husbandry). The credit limit is determined scientifically using the District Level Technical Committee (DLTC) Scale of Finance, crop acreage, with an additional 10% for post-harvest/household needs and 20% for farm asset maintenance. Under the Government of India's Modified Interest Subvention Scheme (MISS), short-term agricultural credit up to ₹3.00 Lakh is available at a benchmark concessional rate of 7.0% per annum, and farmers who repay their dues promptly on or before the due date receive an additional 3.0% Prompt Repayment Incentive (PRI), reducing the effective interest rate to an unprecedented 4.0% per annum. Furthermore, in accordance with RBI guidelines, agricultural loans up to ₹1.60 Lakh (and up to ₹2.00 Lakh under approved tie-up arrangements) are completely collateral-free. In West Bengal, KCC is widely disbursed through Public Sector Banks, Regional Rural Banks (such as Bangiya Gramin Vikash Bank and Paschim Banga Gramin Bank), and District Central Cooperative Banks (DCCBs/PACS). It is strictly a credit facility and does not replace or conflict with direct grant schemes like Krishak Bandhu (Natun) or PM-KISAN.