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Kisan Credit Card (KCC) Scheme

Reserve Bank of India (RBI) has issued directions on Kisan Credit Card (KCC) Scheme.

To whom are the directions applicable?

The directions are applicable to the following entities –

  • Commercial Banks (excluding overseas branches of Indian banks)
  • Small Finance Banks (SFBs)
  • Regional Rural Banks (RRBs)
  • Rural Co-operative Banks –
    • State Co-operative Banks (StCBs)
    • Central Co-operative Banks (CCBs)

To which loans shall the directions be applicable?

The directions shall be applicable to loans sanctioned under the KCC Scheme with effect from January 01, 2027. 

What are the crop seasons?

  • Crop season means the period up to harvesting and marketing of the crops raised.
  • Short duration crops shall mean crops with anticipated period from sowing to marketing up to 12 months.
  • Long duration crops mean crops which are not short duration crops. The crop season for long duration crops i.e., anticipated period from sowing to marketing is more than 12 months and up to 18 months.
  • For the purpose of the KCC Scheme, crop seasons shall be standardized at 12 months for short duration crops and 18 months for long duration crops.

Who are small and marginal farmers?

  • Marginal farmer means a farmer with landholding of up to 1 hectare.
  • Small farmer means a farmer with landholding of more than 1 hectare and up to 2 hectares.

What shall be the purpose and tenure of loans under the KCC Scheme?

  • Under the KCC Scheme, banks shall extend credit to eligible borrowers for their farming and other needs as indicated below in the form of a composite facility with a tenure of 6 years –

Purpose of credit Type of credit
  • Short term credit requirements for cultivation of crops
  • Short term credit requirements for allied activities –
    • Animal husbandry
    • Fisheries & aquaculture
    • Other allied activities – production related activities concerned with sericulture, lac culture, beekeeping, and other similar allied activities
  • Post-harvest / post-production expenses
  • Consumption requirements of farmer household
  • Expenses for maintenance of assets related to agriculture and allied activities, soil testing, real-time weather forecasts / other technological support services and organic / good agricultural practices or similar relevant certification
  • Crop insurance, accident insurance, health insurance and asset insurance
  • Produce marketing loans
 The aggregate of these components shall form the short-term credit limit portion of the composite facility.
Investment requirements for agriculture and allied activities It shall constitute the long-term credit limit portion of the facility.

  • The short-term component of the KCC limit for the purposes of crop cultivation and allied activities shall be in the nature of revolving cash credit facility. There shall be no restriction on the number of debits and credits.

What shall be the KCC limit?

The short-term credit limit fixed for the 6th year together with the estimated long-term credit limit shall be the Composite Maximum Permissible Limit (CMPL) and is to be treated as the KCC limit.

What are the types of credit facilities under the KCC Scheme?

Working capital loans for cultivation of crops

  • Eligible borrowers –
    • Farmers (individual / joint borrowers), who are owner cultivators
    • Tenant farmers, oral lessees, and sharecroppers
    • Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers / cultivators including tenant farmers, oral lessees, and sharecroppers
  • The drawing limit for each crop season shall be the sum total of the following –
    • A = Scale of Finance (SoF) [as notified by State Level Technical Committee (SLTC) / District Level Technical Committee (DLTC)] for the respective crops for the current crop season multiplied by extent of area of cultivation
    • B = 10% of ‘A’ above towards post-harvest expenses and consumption requirements of household
    • C = 20% of ‘A’ above towards repairs and maintenance of farm assets, soil testing, weather advisory and agri-extension service subscriptions, software and digital advisory platforms fees, drone-based crop health surveys and spraying services, remote sensing and satellite-based crop monitoring services, other technological support services, organic / good agricultural practices certification and similar other services, in the nature of working capital expenses
    • D = Premium for crop insurance, accident insurance, health insurance and asset insurance, if any
  • In case the cropping pattern changes for any subsequent season, the drawing limit shall be reworked by taking into consideration the crops proposed to be grown.
  • In situations where the SoF has not been notified by SLTC for a particular crop season, the bank shall apply a 10% notional hike over the SoF applicable for the previous season and determine the drawable limit for the ensuing season. However, in cases where the SoF has been notified but not revised, banks shall adopt the existing SoF.
  • In respect of crops not covered in the SoF finalised by the SLTC / DLTC of the respective State, loans extended shall be outside the KCC framework. 
  • The KCC credit limit shall be rounded off to the nearest ₹1,000.
  • At the time of sanction, the maximum permissible limit (MPL) for the short-term crop loan shall be arrived at on a notional basis by adding 10% to the limit of the previous crop season, from the second crop season onwards. In case the drawing limit exceeds the MPL in any crop season / year, the MPL shall be reassessed at the time of review.
  • Marginal farmers shall also be eligible for a flexible credit limit of ₹10,000 to ₹50,000 (as Flexi KCC) without relating it to the value of the land. The composite KCC limit shall be fixed for 6 years on this basis. 
  • Banks shall fix the repayment period as per the crop season applicable.

Working capital loans for allied activities

  • Eligible borrowers –
    • Animal husbandry farmers, fishers, fish farmers and farmers (including tenant farmers and sharecroppers), undertaking allied activities as individual / joint borrowers
    • SHGs / JLGs of individuals as above
  • Banks shall fix the drawing limits for allied activities based on the SoF (as notified by SLTC / DLTC) for the respective activities and number of units (acre / unit / animal / bird, etc.) by adopting the method analogous to that of working capital loans for cultivation of crops.
  • In respect of allied activities not covered in the SoF finalised by the SLTC / DLTC of the respective State, loans extended shall be outside the KCC framework. 
  • In cases where a borrower avails credit for both crop cultivation and allied activities, the additional component towards consumption requirements (10%) shall be considered only once and shall not be reckoned separately for each activity.
  • Banks shall fix the repayment period as per the cash flow / income generation pattern of the activity undertaken by the borrower.

Investment credit for agriculture and allied activities

  • Eligible borrowers – The borrowers eligible for working capital loans for cultivation of crops and allied activities shall be eligible to avail investment credit for purposes related to agriculture and allied activities, illustratively – 
    • Land development 
    • Minor irrigation 
    • Purchase of farm / fishing, etc., equipment 
    • Construction of animal / bird shed 
    • Purchase of livestock 
    • Purchase of equipment related to allied activities 
    • Similar other purposes
  • The term loan limit shall be based on the proposed investments during the tenure of the KCC facility.
  • The term-loan component shall be repayable within 6 years depending on the type of activity / investment. If the nature of investment involves a tenure longer than 6 years, the term loan may be treated as a separate facility outside the KCC framework.

What are the directions on collateral security and margin requirements?

  • Banks shall waive collateral security and margin requirements for agricultural loans including loans for allied activities up to ₹2 lakh per borrower. RBI guidelines on collateral free limit pertain only to secondary collateral and not primary security or assets financed by the loan.
  • Banks shall decide the collateral security and margin requirements for loans above ₹2 lakh.
  • In case of KCC loans against hypothecation of crops / stock and involving tie-up arrangements for recovery, banks may waive collateral security for loans up to ₹3 lakh.

What are other directions?

  • Where there are difficulties in getting certification regarding identity and occupational status of sharecroppers and oral lessees, banks shall accept an affidavit submitted by such borrowers giving their occupational status (i.e., details of land tilled / crops grown), for loans up to ₹50,000.
  • The KCC holder will have the option to avail any type of crop insurance, asset insurance, accident insurance (including Personal Accident Insurance Scheme) or health insurance and may pay the premium through the KCC account. 


References

Reserve Bank of India. (2026, June 19). 'Reserve Bank of India [Commercial Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13522&Mode=0

Reserve Bank of India. (2026, June 19). 'Reserve Bank of India [Regional Rural Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13524&Mode=0

Reserve Bank of India. (2026, June 19). 'Reserve Bank of India [Rural Co-operative Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13525&Mode=0

Reserve Bank of India. (2026, June 19). 'Reserve Bank of India [Small Finance Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13523&Mode=0


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