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 →
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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.
Worked example: ₹3 lakh KCC loan for one year
- Base rate under the interest subvention scheme: 7% → interest ₹21,000.
- Repay on time and you get a 3% prompt-repayment incentive, so you pay 4% → ₹12,000.
- Delaying repayment by a few months can mean losing the ₹9,000 incentive.
How the KCC loan calculator works: the rules
- Under the Modified Interest Subvention Scheme, short-term crop loans carry 7% interest, reduced to 4% on prompt repayment.
- The Union Budget 2025-26 raised the MISS limit from ₹3 lakh to ₹5 lakh.
- KCC loans up to ₹2 lakh are collateral-free.
KCC loan calculator: frequently asked questions
What is the KCC interest rate?
7% for short-term crop loans under MISS, reduced to 4% if you repay on time.
What is the KCC limit?
The subvention limit was raised to ₹5 lakh in Budget 2025-26.
Is collateral needed for KCC?
Not for KCC loans up to ₹2 lakh — banks give these without collateral or third-party guarantee. Above that, banks may ask for land documents or other security.
What happens if I repay late?
You lose the 3% prompt-repayment incentive and pay the higher rate.
Can dairy or fishery farmers get KCC?
Yes, KCC covers allied activities like animal husbandry and fisheries.
Where do I apply for KCC?
At your bank branch or through PM-KISAN-linked KCC drives.
Official sources: PIB — KCC limit raised· Last reviewed 2026-10-30. Results are estimates — confirm final figures with your lender, insurer or tax adviser.