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Kisan Credit

Card (KCC)
Crop Loaning

ACA-TM-37 (v2.2-20-

Salient features of the

KCC Scheme

Farmers to be provided with a KCC and a pass

book or card-cum-pass book.
Revolving cash credit facility.
Limit on the basis of operational land holding,
cropping pattern and scale of finance.
Limit for entire production credit needs for full
year plus ancillary activities related to crop
Card valid for 3 years subject to annual review.
Withdrawals through slips/cheques
accompanied by card and passbook.
ACA-TM-37 (v2.2-20-

Salient features contd.....

Each drawal to be repaid within 12 months.
Conversion/reschedulement of loans in case
of damage to crops due to natural calamities.
Security, margin, rate of interest, etc. as per
RBI norms.
Operations may be through issuing branch
and also through other designated branches
at the discretion of bank.
KCC loans for notified crops covered under

ACA-TM-37 (v2.2-20-

Revised KCC Scheme

ACA-TM-37 (v2.2-20-

Adequate and timely credit
Single window for cultivation & other
Short term credit for cultivation of crops
Post harvest expenses
Produce Marketing loan
Consumption requirements of farmer household
Working capital for maintenance of farm assets
Investment credit for agriculture and allied activities
ACA-TM-37 (v2.2-20-

All Farmers Individuals / Joint
Tenant Farmers, Oral Lessees &
Share Croppers
SHGs or Joint Liability Groups of
Farmers including tenant farmers,
share croppers etc.
ACA-TM-37 (v2.2-20-

Fixation of Maximum
Permissible Limit
Short Term Limit at the end of the
validity period
Term Loan Component

ACA-TM-37 (v2.2-20-

Fixation of ST credit limit

(Farmers other than MF)
First Year
Scale of finance x Extent of area cultivated
+ 10% of limit towards post-harvest /
household / consumption requirements
+ 20% of limit towards repairs and
maintenance expenses of farm assets
+ crop insurance, PAIS & asset insurance.

ACA-TM-37 (v2.2-20-

ST credit limit contd.

(Farmers other than MF)

Second & subsequent years

Previous year limit plus 10% of increase
towards cost escalation for every successive
year ( 2nd, 3rd, 4th & 5th year)
In case the cropping pattern adopted by the
farmer is changed in the subsequent year, the
limit may be reworked
In case the revision of scale of finance for any
year exceeds the notional hike of 10%, a
revised limit may be fixed
ACA-TM-37 (v2.2-20-

Short term component of the KCC limit
Revolving cash credit facility
Drawals as per convenience of farmer
No restriction in number of debits and credits

Term loan component

Installments withdrawn based on nature of
investment and repayment schedule drawn
as per the economic life of the proposed

ACA-TM-37 (v2.2-20-

Marginal Farmers
A flexible limit of Rs.10,000 to Rs.50,000
(as Flexi KCC) based on:

land holding and crops grown

post harvest warehouse storage related
credit needs and other farm expenses,
consumption needs, etc.,
small term loan investments
establishing mini dairy/backyard poultry

ACA-TM-37 (v2.2-20-

Validity & Documentation

Validity period to be decided by the
Annual review.
Margin to be decided by the bank.
One time documentation at the time of
first availment and simple declaration
Processing fee to be decided by the banks.
ACA-TM-37 (v2.2-20-

Repayment & NPA


Repayment period as per anticipated

harvesting and maturity period of the crops.
Term loan component: Normally repayable
within a period of 5 years depending on the
type of activity / investment.
Financing banks at their discretion, may provide
longer repayment period for term loan.
Extant prudential norms for income recognition,
asset-classification and provisioning will apply.

ACA-TM-37 (v2.2-20-

Hypothecation of crops up to card limit of Rs.
1.00 lakh
With tie-up for recovery: Banks may consider
sanctioning loans on hypothecation of crops
upto card limit of Rs.3.00 lakh
Collateral security at the discretion of Bank for
loan limits above Rs.1.00 lakh in case of non tieup and above Rs.3.00 lakh in case of tie-up
Banks to ensure on-line creation of charge on
the land records in States where facility
ACA-TM-37 (v2.2-20-

Other Features
Interest Subvention/Incentive by GoI and / or State Govt.
Mandatory Crop Insurance and PAIS.
Farmer to have option to take benefit of Assets
Insurance & Health Insurance (wherever product is

facility of all insurance premia paid through KCC


KCC Short Term sub-limit cum SB account

Separate electronic card for ST & long term sub-limits
until both the sub-limits are integrated through an
electronic card with suitable software .

ACA-TM-37 (v2.2-20-

Delivery Channels

Through branch
Using Cheque facility
Through ATM / Debit cards
Through BCs and Ultra Small Branches
Through PoS available in Sugar Mills/
Contract farming companies, etc.,
Through PoS available with input dealers
Mobile based transfer transactions at
agricultural input dealers and mandies
ACA-TM-37 (v2.2-20-

Thank You
ACA-TM-37 (v2.2-20-