Kisan Credit Card (KCC) & Modified Interest Subvention Scheme (MISS) – Guide for Farmers

The Kisan Credit Card (KCC) is a revolutionary scheme by the Government of India that provides farmers with timely and affordable credit for their agricultural needs. The KCC offers working capital to purchase seeds, fertilizers, pesticides, and pay for labor or irrigation expenses. To further reduce the financial burden, the Modified Interest Subvention Scheme (MISS) provides additional benefits on interest rates for timely repayment. Launched in 1998, KCC has evolved into a comprehensive credit facility covering all types of crops, including horticulture and allied activities such as dairy, poultry, and fisheries. Farmers can avail short-term loans up to ₹3 lakh at subsidized interest rates, ensuring liquidity during sowing and harvesting seasons. MISS complements KCC by offering an additional interest subvention of 3% per annum to small and marginal farmers who repay their loans promptly.

Key Features of KCC and MISS

Simple, hassle-free loan with low processing charges and minimal documentation.
Credit limit depends on landholding size, crop type, and input costs.
Flexible repayment schedule aligned with crop cycles.
Interest subvention under MISS reduces effective rate to 4% per annum for timely repayment.
Available to individual farmers, joint borrowers, tenant farmers, and farmer groups.

How Farmers Can Use KCC and MISS

Farmers can maximize benefits from KCC and MISS by following these steps:

Approach an eligible bank, including public sector banks, cooperative banks, or regional rural banks.
Submit Aadhaar, land records, and identity documents to apply for the KCC.
Specify the type of crops or allied activities requiring credit along with expected costs.
Maintain timely repayment of principal and interest to avail the interest subvention under MISS.
Use the sanctioned credit efficiently for seeds, fertilizers, machinery, irrigation, or other farming requirements.

Proper planning and use of KCC funds can reduce dependency on informal lenders and high-interest loans, improving farm profitability.

Benefits for Farmers

KCC and MISS provide multiple advantages to farmers. Low-cost credit ensures smooth financial management during crop cycles. Timely availability of funds increases productivity by enabling the purchase of quality inputs. Interest subvention under MISS encourages prompt repayment, instilling discipline and improving creditworthiness. Farmers also benefit from insurance coverage linked to KCC, which protects them against unforeseen crop or asset losses.

By integrating KCC with schemes like PM-KISAN, PMFBY, and AIF, farmers can access financial support, crop insurance, and infrastructure funding simultaneously. This combination creates a strong safety net, helping farmers invest in modern technologies and sustainable practices.

Official Resources

Farmers can visit the RBI Kisan Credit Card portal for details, eligibility, and participating banks. District agriculture offices and cooperative banks provide local support for application, processing, and disbursal of KCC loans.

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