Key Facts and Data Points

  • Launch: 1998; Revised KCC: 2020 (RuPay‑enabled, single‑window credit).
  • Credit Limits (2025‑26):
  • Crop loan limit raised to ₹5 lakh per farmer.
  • Fisheries & allied activities limit: ₹5 lakh.
  • Collateral‑free loan limit: ₹2 lakh per borrower.
  • Interest Rate: Short‑term crop loans up to ₹3 lakh at 7% interest with 3% subvention under MISS, effective rate 4%.
  • Beneficiaries: Owner‑cultivators, joint borrowers, tenant farmers, oral lessees, sharecroppers, SHGs, JLGs.
  • Outstanding Credit (2025‑26): ₹10.2 lakh crore across 457 banks.
  • Active Cards: 7.72 crore KCCs.
  • Digital Initiatives: Integration with PM‑KISAN data, Kisan Rin Portal (2023), RuPay‑enabled cards.

Background and Context

  • The scheme was introduced to address the chronic shortage of institutional credit for agriculture, which previously relied heavily on informal moneylenders.
  • Modified Interest Subvention Scheme (MISS), launched in 2006‑07, subsidises interest to make credit affordable and provides relief during natural calamities.
  • The 2020 revision aligns the KCC with digital payments, enabling flexible withdrawals, revolving credit for up to 5 years, and single‑window processing.

Significance for India / Governance / Policy

  • Financial Inclusion: Collateral‑free credit expands access for marginal and land‑less farmers, SHGs, and JLGs.
  • Agricultural Productivity: Timely credit for inputs, post‑harvest, and allied activities boosts yields and reduces distress sales.
  • Risk Mitigation: Interest relief during calamities (up to 1 year, extendable to 5 years) cushions farmer debt burden.
  • Digital Governance: Use of RuPay cards and the Kisan Rin Portal enhances transparency, reduces processing time, and curbs leakages.
  • Policy Synergy: Complements PM‑KISAN income support, Atmanirbhar Bharat Abhiyan, and broader inclusive growth agenda.

Related Constitutional / Legal Provisions

  • Article 246 – Union’s competence to legislate on agriculture and credit.
  • RBI’s Directions – Guidelines on agricultural credit, interest subvention, and digital payment infrastructure.
  • National Bank for Agriculture and Rural Development (NABARD) Act, 1981 – Supports institutional credit flow to the agricultural sector.
  • Food Security Act, 2013 – Indirectly linked as credit availability affects procurement and storage.

References

  • Press Information Bureau (PIB) releases on KCC and MISS.
  • RBI Annual Report 2025‑26 – Agricultural Credit.
  • NABARD publications on farm credit.