Crop loans and Kisan Credit Card
A crop loan pays for the cost of growing a crop — seed, fertiliser, labour, water — and is repaid after the harvest. Most crop lending now runs through the Kisan Credit Card (KCC), a revolving limit set by the bank from your land and your crops. Government interest support brings the rate down on loans up to a limit, and further if you repay on time.
We explain what lenders usually ask for and help you get your papers in order — the first call is free.
Estimate before you talk to a lender
Crop loan repayment planner (illustrative)
Crop loans are repaid in one amount after the harvest, within the period the bank sets. Enter the amount, the yearly rate your bank charges you (after any government interest subsidy) and the months until repayment. Simple interest is assumed; the bank’s method and the subsidy rules decide the actual figure.
Estimate only. Your lender sets the actual rate, EMI and charges.
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Details
What banks usually check
- Land records: ownership or a registered lease or tenancy, and the area under each crop.
- The crops grown and the "scale of finance" — the per-acre cost the district sets for each crop.
- Past repayment of crop loans; any earlier waiver or settlement.
- Identity, and Aadhaar linked to a bank account for scheme benefits.
- For allied activities (dairy, fisheries), the activity and its income.
Documents to keep ready
- Land records: patta / chitta / adangal or the state equivalent, and recent land tax receipts.
- Identity and address proof; Aadhaar; PAN if you have one.
- Passport photographs.
- Crop details and, where required, a declaration of the crops to be grown.
- For tenant farmers: the lease or tenancy document the bank accepts.
- Bank passbook.
Repayment
Repaid in one amount after the harvest, within the period the bank sets for that crop (usually up to 12 months, longer for long-duration crops). A KCC limit is renewed yearly and the limit can rise each year. Paying on time keeps the subsidised rate and the card active.
Interest and charges
Under the government interest-subvention scheme, short-term crop loans up to a limit are available at a reduced rate, with a further reduction for prompt repayment; the limit and rates are set by the government — confirm the current figures with your bank. Above the limit, the bank’s normal rate applies. Ask about processing fees (often waived for small limits) and crop-insurance premium deducted from the loan.
Security or own contribution
Small crop loans are usually secured on the crop itself (hypothecation). Above a bank-set amount, a mortgage on the land or other collateral is asked for.
How to prepare
Bring your land records up to date and in your name. Keep last year’s loan repaid or regularised before the new season. Know the scale of finance for your crop in your district. Enrol in crop insurance where it applies. Do not sign for a loan you did not apply for.
Questions about crop loans
What is a Kisan Credit Card?
A revolving credit limit for farmers, used like a cash-credit account, for crop and allied needs. It comes with a card or passbook and is renewed yearly.
How much can I borrow?
The bank multiplies the scale of finance for each crop by your area, adds an allowance for post-harvest and maintenance costs, and sets the limit.
Can a tenant farmer get a crop loan?
Yes, if the bank accepts the tenancy document; some states have specific schemes for tenants and joint liability groups.
What is the subsidised rate and up to what amount?
Set by government each year. Ask your bank for the current limit and rates in writing rather than relying on figures you hear.
What happens if the crop fails?
Tell the bank at once. Crop insurance may cover the loss; banks can convert or reschedule the loan after a declared natural calamity. Do not wait for the due date.
Do I need to repay before the next season?
Yes — the KCC limit is renewed on repayment. An overdue crop loan loses the subsidised rate and affects the next season’s loan.
Is a loan waiver coming?
Waivers are government decisions and are not predictable. Plan to repay; treat any waiver as a bonus, not a plan.
What we do here: we explain what lenders usually ask for and help you get your documents in order. We do not lend, arrange loans or take commission. The first call is free. See what we do.
