Definition
Kisan Credit Card (KCC) is a credit-delivery mechanism introduced for farmers to provide timely and affordable short-term institutional credit for cultivation and allied needs.
Exam-ready points
- The PIB backgrounder says the KCC scheme was introduced in 1998.
- KCC is meant to reduce dependence on informal borrowing by giving farmers easier access to formal bank credit.
- It is closely linked to the Modified Interest Subvention Scheme, under which eligible short-term crop loans can carry a subsidised interest rate.
- The 2026 PIB note says short-term KCC loans are available at 7% interest, and prompt repayment can reduce the effective rate to 4%.
- For revision, connect KCC with NABARD, rural credit, priority sector lending and farmer financial inclusion.
Common mistakes
- Do not treat KCC as a cash-transfer scheme.
- Do not confuse KCC with crop insurance, even though both matter for agriculture questions.
- Do not forget that KCC sits inside the broader rural-credit and subsidised-loan framework.
Difficulty
Foundation
Revision time
About 10 minutes
Self-check questions
- Why was KCC introduced in India’s rural-credit system?
- How does interest subvention change the effective cost of a short-term KCC loan?
- Which larger institutions and policy tools should you connect with KCC in exam answers?