About Kishan Credit Card

Kisan credit card – KCC was launched to save the Indian farmers from the high interest rates charged by the money lenders in the unorganized sector. Farmers can avail a loan as and when they require. The interest charged is also dynamic, meaning if customers make timely payments then they are charged a lower rate of interest.

The Assam Co-operative Apex Bank Ltd. (ACAB) has launched the Kishan Credit Card Scheme for the benefit of the Farmers under direct finance w.e.f. 01.04.2000


The scheme aims at providing adequate and timely support for the comprehensive credit requirement of farmers for taking up agriculture and allied activities under single window with flexible and simplified procedure through Kisan Credit Card.


The KCC should be extended to farmers -

  • All farmers- Individual/joint borrowers who are owner cultivators
  • Tenant farmers, oral lesses & share croppers
  • SHGs or Joint Liability Groups including tenant farmers, share croppers etc.

Loan details:

  • Short Term loans for Seasonal Agricultural operation (SAO) are being provided by the Bank to raise both Rabi & Kharif crops through KCC. The Bank is catering to the needs of agricultural credit of the farmers mainly through the adopted GPSS/LAMPS and also to direct individuals.
  • KCC facility is sanctioned based on the land holding and crop grown including post harvest expenses repayable within due date in the nature of revolving cash credit. This, in turn, depends on the Scale of Finance fixed for every year. Under the KCC scheme, individual borrowers are provided with Rupay-Kisan Card and they can withdraw money from KCC A/c any number of times as per their requirement. Similarly, farmer members of adopted GPSS/ LAMPS can avail credit facility through their Societies to meet up their crop production requirement. In the case of GPSS/ LAMPS, credit facility is sanctioned in the name of respective Society and the loan amount of farmer members are transferred to their SB KCC A/c. The borrower farmer can withdraw money from their SB-KCC A/c through Rupay- Kisan Card as per requirement.
  • Rate of Interest @ 7% p.a , if paid within due date. In case of default, penal interest @ 2% p.a will be charged as per circular issued from H.O time to time.
  • The Govt. Of India Interest Subvention is available on KCC for prompt paying farmers
  • Repayment period is the due date fixed by the Bank for each crop. However, each drawal under KCC is to be liquidated within 12 months without the need to bring the debit balance to zero at any point of time. No withdrawal in the A/c should remain outstanding for more than 12 months.
  • The Revised Kisan Credit Card is valid for five years subject to annual review.
  • No separate margin need to be insisted as the Margin is inbuilt while fixing the Scale of Finance
  • The crops grown will remain hypothecated to the Bank .
  • Security-No collateral security is insisted on KCC till an amount of Rs 1.60 Lacs subject to discretion of the Bank.
  • Insurance-Notified crop has to be insured under the Crop Insurance scheme by the Bank by debiting the loan amount.
  • Personal Accident Insurance Scheme(PAIS)- The farmer should also be covered under PAIS as per norms of the Bank.