The Kisan Credit Card (KCC) scheme was introduced in 1998 to provide adequate and timely credit support from the banking system to the farmers for their cultivation needs.

The scheme aims to provide credit to farmers for agricultural needs like purchase of seeds, fertilizers, pesticides, and other production needs. It also covers expenses related to animal husbandry and fisheries.

Features of the KCC scheme include:

• Short-term credit limits for crops and working capital for animal husbandry and fisheries
• Long-term credit limit for investment in agriculture and allied activities
• Interest subvention of 2% per annum for short-term crop loans up to ₹3 lakh
• Additional 3% interest subvention for prompt repayment
• Flexible repayment options aligned with crop cycles
• Personal accident insurance cover of ₹50,000 for death and ₹25,000 for disability

The credit limit is determined based on the scale of finance for the crop plus 30% for other expenses, multiplied by the area of the crop cultivated. For term loans, the credit limit is based on the proposed investment.