The Kisan Credit Card (KCC) is a credit scheme introduced in August 1998 by Indian public sector banks to provide farmers with timely and affordable access to credit. The scheme was formulated by the National Bank for Agriculture and Rural Development (NABARD) based on the recommendations of the R. V. Gupta Committee. Its primary objective was to solve the problem of farmers' dependency on informal, high-interest credit sources by offering a single-window system for their comprehensive credit requirements.
The KCC provides a revolving cash credit facility, allowing multiple drawals and repayments within a fixed limit. The credit limit is determined based on the farmer's operational land holding, cropping pattern, and the scale of finance. Initially focused on short-term credit for crop cultivation, the scheme was expanded in 2004 to include investment credit for allied and non-farm activities, such as animal husbandry and fisheries. The credit covers short-term needs like purchasing agricultural inputs (seeds, fertilizers), post-harvest expenses, and consumption requirements of the household. The scheme is implemented by Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, and Cooperatives.
The KCC has undergone several changes, including the extension of its scope to cover fisheries and animal husbandry by 2019. In the Union Budget 2025, the credit limit under the Modified Interest Subvention Scheme (MISS) was increased from ₹3 lakh to ₹5 lakh. More recently, the Reserve Bank of India (RBI) issued draft guidelines in February 2026 proposing a major overhaul to create a unified framework for all implementing banks. These proposed changes include extending the maximum loan tenure to six years and aligning drawing limits with the actual cost of cultivation for each crop season. The draft also expands eligible expenses to include modern farming practices like soil testing and real-time weather forecasting.