Kisan Credit Card

About this loan scheme

Kisan Credit Card gives farmers a running credit line — much like an overdraft — that they can draw against for seed, fertiliser and other cultivation costs without reapplying for a fresh loan every season. Introduced in 1998 and revamped several times since, the card also covers post-harvest expenses, farm-asset maintenance and allied activities like dairy and fishing, with the limit fixed against each district’s official Scale of Finance rather than a flat amount. Loans up to Rs.3 lakh carry a 2% interest subvention on the 9% base rate, and repaying within 12 months earns a further 3% prompt-repayment incentive, bringing the effective cost down to about 4% per annum.