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Fact Check on KCC: Has Government Increased Interest on KCC Loan from 7 to 12 Percent; Know the Truth

Pronami Chetia
Pronami Chetia
kisan credit card
State Bank of India offers loans for crop production in the form of ACC / KCC

Recently one news has been viral over social media related to Kisan Credit Card. As per the viral news, Modi government has increased the interest on Kisan Credit Card Loan from 7 percent to 12 percent. This claim is being made in viral news which has totally proved wrong by PIB Fact Check. 

Moreover, it is also reported that the Central Government has not made any such announcement regarding increasing the interest rate of KCC loan. 

Today we will uncover the truth from the viral news and moreover PIB Fact Check has warned people not to fall on the trap of such news by tweeting.  

KCC Account Features and Benefits 

State Bank of India offers loans for crop production in the form of ACC / KCC. The loan covers the crop production expenses, post-harvest expenses, contingencies, etc. Kisan Credit Card is available in the form of electronic Rupay Card, through which the farmer can draw the money from ATMs, purchase items like fertilizers through PoS.  

  • Get interest at saving bank rate on credit balance in KCC account.

  • Free ATM cum debit card (State Bank Kisan Card) for all KCC borrowers

  • Interest subvention @2% p.a is available for loan amount upto Rs. 3 Lacs

  • Additional interest subvention @3% p.a for prompt repayments

  • Notified crops / notified areas are covered under crop insurance for all KCC loans

  • Quantum of loan for 1st year will be assessed on the basis of Cost of cultivation, post-harvest expenses and farm maintenance cost

  • For subsequent 5 year loan will be sanction on the basis of increase in scale of finance

  • Collateral security is waived for KCC limit upto Rs. 1.60 lac.

  • Sanctioned KCC limit will be considered for the purpose of fixing collateral security requirement

  • Simple interest @7% p.a will be charged for one year or upto the repayment due date, which ever is earlier.

  • In case of non-repayment within the due dates interest is applied at card rate

  • Beyond due date interest will be compounded half yearly

  • The repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted.

(Source: State Bank of India) 

 You Can Make KCC in These Banks 

The Kisan Credit Card can be obtained from any Co-operative Bank, Regional Rural Bank. Or this card can also be taken from SBI, BOI and IDBI Bank. Apart from this, National Payments Corporation of India Rupees also issues Kisan Credit Card. 

You can get your KCC from Bank of India, State Bank of India, Bank of Baroda, Axis Bank. However, the government has superseded many other national banks including ICICI Bank. The farmer should submit his application on these banks. 

How to Apply for Kisan Credit Card from Mobile? 

  1. Go to the Official Website (https://eseva.csccloud.in/KCC/Default.aspx)

  2. To get a Kisan Credit Card and a loan through it, farmers need to visit the official website of Kisan credit card.

  3. Click Here- https://eseva.csccloud.in/KCC/Default.aspx

  4. After clicking on this link, you can visit the website of the Ministry of Agriculture and Farmers Welfare. After this, you have to click on 'Apply New KCC'.

  5. After that, you need to fill every detail that is required for Adhaar Card.

  6. This is the easiest way to apply for KCC from mobile.

  7. Now submit the application of this Kisan Credit Card with all the necessary documents to the nearest bank. Verification of your documents by a bank official! After 7 days your Kisan Credit Card (KCC) will be made!

These Documents are needed for KCC 

If you want to apply for this scheme then you must have Voter ID card / PAN card / Passport / Aadhaar card / Driving license etc. for ID proof. 

To get a Kisan Credit Card (KCC), farmers have to have the acknowledgement of the land, the Khasra number of the land and all other documents along with the Aadhaar card. 

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