Compare Kisan Credit Card interest rates from different banks to get funds at lower costs!
The Kisan Credit Card (KCC) scheme was introduced by the Government of India to provide farmers with quick access to credit to manage agricultural needs. KCC interest rates are typically low, making it an affordable option for individuals. These rates are fixed by the respective issuing bank and decided based on the amount borrowed.
Here are some of the top banks offering the Kisan Credit Card in India with details of the interest rate.
Bank |
Kisan Credit Card Interest Rate |
SBI |
7% p.a. (Up to ₹3 Lakhs) |
Axis Bank |
8.85% p.a. onwards |
HDFC Bank |
8.75% p.a. |
Indian Overseas Bank |
9% p.a. onwards |
UCO Bank |
7% p.a. (Up to ₹3 Lakhs) |
Note: The interest rates provided above may change at the issuer’s discretion and the Government of India’s policies.
Here are some factors that impact the Kisan Credit Card scheme interest rate-
Credit History
A strong credit history, marked by timely repayments, may lead to lower interest rates.
Crop and Livestock Type
The nature of farming operations, such as crop type or livestock, could impact the perceived risk, influencing interest rates.
Loan Amount
You may only get a reduced interest rate up to a certain loan amount. Larger loans will have regular interest rates.
Government Policies
Government initiatives aimed at supporting farmers may lead to lower interest rates on kisan credit cards.
Knowing the eligibility checklist and documents required for KCC can help streamline the application process. To check whether you qualify for KCC, you can go through the following sections:
1. Eligibility Criteria
To apply for the scheme, you must be:
- An individual or joint borrower who is an owner cultivator
- A tenant farmer, shared cropper, or oral lessee
- A member of a Self-Help Group or joint-liability group consisting of shared croppers, tenant farmers, etc.
2. Documents Required
If you meet the Kisan Credit Card eligibility, you can apply for the scheme with the following set of documents:
- A completed Kisan Credit Card application form
- Two passport-size photographs
- A valid ID proof such as your PAN Card, Aadhaar Card, Passport, Driving License, or Voter’s ID
- A valid address proof such as your PAN Card, Aadhaar Card, or Driving License
- Certified proof of landholding by relevant revenue authorities
- Cropping pattern with details of acreage
- Security documents for loans exceeding ₹1.6 Lakhs or ₹3 Lakhs (as applicable)
- Any other documents required by the bank
About Credit Cards Services
- Apply for Credit Card
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- Credit Card Documents
- Credit Card Eligibility Criteria
- Credit Card EMI
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- International Credit Card
- Credit Card Limit
- Credit Card Lounge Access
- Credit Card Netbanking
- Credit Card Bill
- Credit Card Pin Generation
- Credit Card Reward
- Shopping Credit Card
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Frequently Asked Questions
What is the difference between simple interest and compound interest for kisan credit cards?
Simple interest means that the banks calculate Kisan Credit Card interest based only on the principal amount at a set point in time. Under the compound interest option, banks compute interest also on the accumulated interest over time.
How is KCC interest calculated?
Banks compute KCC interest based on the rates stipulated under the DBR Master Directions on Interest Rate on Advances. For short-term crop loans, farmers can receive interest subsidies from the Government of India.
Are KCCs interest-free?
Banks charge interest rates for the Kisan Credit Card, but they will be lower than regular credit card interest rates.
What is the KCC limit?
The maximum limit of credit available under kisan credit cards depends on the issuer’s policies.
What are the foreclosure/prepayment charges on a Kisan Credit Card?
The prepayment charges on the Kisan Credit Loan vary per the bank’s specific policies. It could range from NIL to 4% of the foreclosure amount.
What is the maximum tenor and interest rate of the loan you can take on a Kisan Credit Card?
The maximum tenor for Kisan Credit Card loans can be 5 years. The maximum Kisan Credit Card interest rate may extend up to 14.10%, but this differs across banks.
What will be the security or collateral the bank demands to sanction the loan amount?
For hypothecation of crops, you can get a loan of up to ₹3 Lakhs with KCC without pledging an asset as collateral. In case of non-tie-up and tie-up advances, you can obtain collateral security for loans ranging between ₹1 Lakh and ₹3 Lakhs, respectively.
What activities can one use the Kisan Credit Card loan for?
You can use the funds received from KCC to purchase inputs for agricultural purposes and livestock needs. The funds could be used to buy seeds, fertilisers, equipment, and more.
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