How does a Kisan credit card work and how to apply?

Kisan credit card

Agriculture is a massive employer in the Indian economy. Around 70 percent of India’s population is employed by agriculture. For a long time, farmers have been dependent on wealthy landlords and the unorganized money lending process, which often traps them in the debt trap because of the high-interest rate charged by the lenders. This blog on Kisan credit card tells you how farmers can raise funds through organized means, which provides the facility of no collateral, flexible repayment,  and a low-interest rate.

What is a Kisan Credit card?

Kisan credit card is a scheme launched by the government of India in 1998-99 along with the Reserve  Bank of India. And the national bank for rural and agriculture development (NABARD) after seeing  the exploitation of small farmers by wealthy merchants. It provides loan relief to farmers in the  agriculture, animal husbandry and fisheries sector.

How does the Kisan credit card work? 

The scheme aims to provide short term credit requirements for crop cultivation, working capital for farm assets and meet the post-harvest expenses. So, the loan is targeted to meet bigger credit needs and day to day expenses of the farmers.

Applying for a Kisan credit card is different for different banks, but the process is simple. The farmers need to provide the details of landholding and the income earned from the land to the concerned bank. Like any other credit loan, the borrower’s credit history is considered before giving the Kisan credit card.

Who is eligible to borrow a loan under a Kisan credit card?

  • Individual or joint borrower who is owner cultivator.
  • Tenant farmers or sharecroppers.
  • Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers, including tenant farmers,  sharecroppers etc.

How to apply for a Kisan credit card? 

Kisan credit card is the best credit card in India option for someone looking to borrow for agriculture loan needs. Various banks offer Kisan credit cards. Some prominent banks offering loans are NABARD,  SBI, Bank of India, IDBI bank, etc.

Following are some of the mandatory documents you need to keep in handy in case you  apply:

  • Identity proof such as your Adhar card or voter id card
  • Address proof such as your Adhar card, pan card, or driving license.
  • Your land documents.
  • A passport size photograph
  • Duty filled in and signed in the application form.

Now you can either apply online by visiting the concerned bank’s website, or you can visit the nearest bank office.

In case of online application:

  • Visit the bank’s website and from the list of options, choose the agriculture sector. You can click on the Kisan credit card option and click “Apply”.
  • The website will redirect you to the application page. There you can fill out the required details and click “submit”.
  • You will receive a reference number. The bank will contact you in a few working days if you are eligible to guide you about the further process.

In case of offline application: 

If you want to apply offline, you can visit the preferred bank’s branch. You can contact the bank representative who will guide you regarding the process to apply for a credit card. Since most marginalized farmers won’t be familiar with the process, banks provide offline application facilities to remote parts.


A Kisan credit card is a convenient and the best credit tool that can help a farmer come out of an unjustified interest-driven loan by moneylenders. If you are looking for an agriculture loan and are eligible to apply, you can check and compare various banks to know the best offer that fits your requirement.

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