KCC Loan: 4% vs 7%
Last updated: September 2026 (MISS FY2025-26).
At 7% (late/no incentive)
₹14,000
interest for 1 year on ₹2,00,000
At 4% (prompt, 12 mo)
₹8,000
interest for 1 year on ₹2,00,000
Promptness saves
₹6,000
per year, every year
How to use this calculator
- Enter your KCC loan amount (up to Rs. 3 lakh for subvention).
- Tell us if you will repay within 12 months — that decides 4% vs 7%.
- Compare both outcomes and see exactly what prompt repayment saves.
What is this tool?
A Kisan Credit Card gives farmers crop loans at 7%, dropping to 4% if repaid within 12 months. This calculator compares both outcomes and shows exactly what prompt repayment saves. Use it every season before renewal.
What banks don't tell you (KCC loans)
The 4% rate is not automatic — it is 7% lending minus a 3% prompt-repayment incentive. Repay even a day late past 12 months and the incentive is gone.
Allied-only loans (dairy, fishery, poultry) get the benefit only up to Rs. 2 lakh. Aadhaar e-KYC is mandatory for the subvention to flow.
Overall KCC limits were enhanced toward Rs. 5 lakh, but interest subvention still operates at Rs. 3 lakh. Borrow above that and the excess runs at normal rates.
Read the full Real Loan & EMI Guide →
Also searched as: kcc loan kaise le, kisan credit card kaise banaye, किसान क्रेडिट कार्ड, kcc 4 percent, kcc renewal, kcc pashupalan loan
This tool gives an estimate for guidance only. It is not financial advice. Confirm MISS terms for the current financial year with your bank.
Common KCC questions
How is KCC interest 4%?
Banks lend at 7% under MISS FY2025-26; the government adds 1.5% subvention to banks and 3% prompt-repayment incentive to you — 7 minus 3 equals 4%, only if repaid within 12 months.
What if I repay late?
You lose the 3% incentive and pay the base rate plus any penal interest the bank charges for overdue agri loans. The Kisan Rin Portal tracks every claim digitally.
Do I need collateral?
No collateral up to Rs. 2 lakh per borrower. Above that, banks may ask as per their policy.
Who can apply for KCC?
Individual farmers, tenant/sharecropper farmers, JLG/SHG groups and allied-activity (dairy, fishery, poultry) farmers. Aadhaar e-KYC is mandatory.
How to apply for KCC?
At a bank branch with land papers and Aadhaar, or online via the JanSamarth portal. A RuPay KCC card is issued on approval.