A Study on Kisan Credit Card Scheme in India: Performance, Challenges and Prospects

Abstract

The Kisan Credit Card (KCC) Scheme, introduced by the Government of India in 1998, has emerged as one of the most significant institutional credit support mechanisms for Indian farmers. The scheme was designed to provide timely, adequate, and affordable credit to farmers for agricultural operations and allied activities such as dairy farming, fisheries, and animal husbandry. The present study examines the performance, impact, challenges, and future prospects of the KCC scheme in India. The study is based entirely on secondary data collected from reliable sources including the Reserve Bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), Ministry of Agriculture and Farmers Welfare, Economic Survey of India, and other government publications.
The study analyses major indicators such as the number of KCC accounts, credit disbursement, institutional credit share, repayment performance, and farmer coverage using percentage analysis and mean score analysis. The findings reveal that the KCC scheme has significantly enhanced institutional agricultural credit, reduced dependence on informal moneylenders, improved agricultural productivity, and strengthened financial inclusion in rural areas. During 2020–2025, the scheme recorded considerable growth in credit disbursement and farmer participation, reflecting its increasing importance in rural economic development.
Despite its achievements, the scheme continues to face challenges such as low awareness among farmers, procedural complexities, inadequate credit limits, and limited access in remote rural regions. The study suggests policy measures including digital banking expansion, simplified loan procedures, financial literacy programmes, and flexible repayment mechanisms to improve the effectiveness of the scheme. Overall, the KCC scheme plays a vital role in promoting sustainable agricultural development and improving the socio-economic condition of Indian farmers.