Kisan Credit Card Calculator
This Kisan Credit Card (KCC) calculator estimates the interest and total repayment on a KCC crop loan, India's short-term agricultural credit scheme. Farmers who repay within the due date get a combined 3% government subvention and prompt-repayment incentive, cutting the effective rate on loans up to ₹5,00,000 to just 4% p.a. Enter your loan amount and repayment timing to see the real cost, including how much a missed deadline costs you.
The subsidized 4% effective rate applies up to ₹5,00,000 total KCC credit.
The low effective rate only applies if you repay by the due date — late repayment forfeits the subvention and reverts to the higher base rate plus penal interest.
KCC crop loans are typically seasonal, repaid within 12 months of disbursement to align with the harvest cycle.
Total repayable
Log in to save₹2,08,000
Principal plus interest, due at the end of the loan period.
4% if you repay by the due date, 9% if you don't.
How to use this kisan credit card calculator
- 1Loan amount: your total KCC crop loan amount — the subsidized 4% effective rate applies up to ₹5,00,000.
- 2Repayment timing: whether you'll repay within the due date. This single choice swings your effective rate from 4% to 9%, so get it right.
- 3Loan period: KCC crop loans are typically seasonal, running up to 12 months to match the crop cycle.
Understanding your results
Total repayable is what you owe at the end of the loan period — principal plus interest. Total interest shows the actual rupee cost, calculated as simple (not compounding) interest since KCC crop loans don't amortize like an EMI loan. Effective interest rate is the rate actually used in the calculation — 4% if you repay on time, or 9% if you don't, reflecting the loss of the government subvention and incentive.
The formula
Interest = Loan amount × Effective rate × (Tenure in months ÷ 12), on a simple-interest basisKCC crop loans use simple interest rather than a compounding EMI structure — interest accrues once, on the original principal, based on time held. The effective rate is what drives the whole outcome: the government's 7% base rate is reduced by a 1.5% interest subvention plus a 1.5% prompt-repayment incentive when you repay on time, together bringing it down to an effective 4% p.a. on loans up to ₹5,00,000. Miss the deadline and you lose both, reverting to the base rate plus up to 2% penal interest.
A worked example
A ₹2,00,000 KCC loan for 12 months, repaid on time, works out to 4% effective interest: ₹2,00,000 × 0.04 × (12/12) = ₹8,000 in interest, for a total repayable of ₹2,08,000. Repay the same loan late instead, and the rate jumps to 9% (7% base + 2% penal interest): ₹2,00,000 × 0.09 × (12/12) = ₹18,000 in interest, for a total repayable of ₹2,18,000 — a ₹10,000 difference purely from missing the repayment deadline.
Things to know
Repaying on or before the due date is the single most important factor in KCC economics — it's the difference between an effective 4% rate and a 9% rate on the same loan, a gap most other loan products don't have. The ₹5,00,000 cap for the subsidized rate is recent: it was raised from ₹3,00,000 in the 2025-26 Union Budget, so older sources quoting the ₹3 lakh limit are now outdated. Always confirm current subvention rules and your exact due date with your bank, since scheme parameters can change.
Frequently asked questions
What is the Kisan Credit Card interest subvention?+
It's a government scheme that reduces the 7% base KCC rate by 1.5 percentage points for farmers, plus a further 1.5 percentage point prompt-repayment incentive if the loan is repaid on time — together bringing the effective rate down to 4% p.a. on eligible loans.
What happens if I don't repay my KCC loan on time?+
You lose both the interest subvention and the prompt-repayment incentive, and the rate reverts to the 7% base plus up to 2% penal interest — roughly 9% p.a. in total, more than double the subsidized rate.
Is KCC interest simple or compound?+
Simple interest — it's calculated once on the original loan amount for the time it's outstanding, unlike an EMI loan where interest compounds on a reducing balance.
What is the maximum loan eligible for the 4% effective rate?+
₹5,00,000 in total KCC credit, as of the 2025-26 Union Budget, which raised the cap from the earlier ₹3,00,000 limit. Amounts above this cap are charged at the bank's normal, non-subsidized rate.
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