Introduced in August 1998, KCC was developed by NABARD based on RV Gupta Committee recommendations to provide farmers with term loans and short-term credit for agricultural needs.
The scheme supports crop cultivation, post-harvest expenses, produce marketing, farm asset upkeep, and investment finance in agriculture and related sectors.
Purpose
Farmers (individuals or joint borrowers), tenant farmers, sharecroppers, SHGs, and JLGs can apply. Minimum age is 18 years.
1- Loans up to ₹3 lakh with no collateral for amounts up to ₹1.6 lakh.
2- Validity of 5 years, subject to annual review.
Interest and Repayment
Interest subvention is available for prompt repayment, with repayment options post-harvest and flexibility within 12 months of each drawl.
Additional Benefit
Farmers receive insurance coverage (up to ₹50,000 for disability/death), debit cards, cash discounts, and support for agricultural machines, fertilizers, and pesticides.
Extended Coverage
Fisheries, animal husbandry, and poultry farmers were included in the scheme in 2018-19.
Documents Required
ID and address proof, landholding proof, cropping pattern, security documents (if applicable), and other bank-specified documents.
Application Process
Applications can be submitted online via bank websites or offline by visiting a bank branch.
Customer Support
For inquiries, toll-free numbers (1800115526, 011-24300606) or the website (www.farmer.gov.in) can be accessed.