Running a dairy, poultry, goat, sheep or pig-rearing activity requires regular working capital. Feed has to be purchased every day, animals need medicines and veterinary care, electricity and water bills must be paid, and farmers may have to spend money several months before receiving sufficient income from milk, eggs or sale of livestock. For small livestock farmers, arranging this money through ordinary personal loans can be expensive.
The Pashu Kisan Credit Card, as it is commonly called, provides a more affordable alternative. Technically, it is not a completely separate nationwide credit-card scheme. It refers to the Kisan Credit Card (KCC) facility extended to animal husbandry and dairying farmers. The Government expanded KCC coverage to animal husbandry, dairy and fisheries in 2019 so that farmers engaged in allied agricultural activities could obtain institutional working-capital finance.
The facility can be particularly useful for dairy farmers, poultry operators and livestock rearers because the sanctioned amount can be used according to recurring production needs. Eligible farmers can also receive concessional interest under the Modified Interest Subvention Scheme, with an additional benefit for timely repayment.
What Is Pashu Kisan Credit Card?
Pashu Kisan Credit Card is the commonly used name for a KCC issued to eligible farmers for animal husbandry and dairying activities.
The credit can help meet short-term working-capital expenses associated with activities such as:
- Dairy farming
- Cow and buffalo rearing
- Goat farming
- Sheep farming
- Pig farming
- Poultry farming
- Rabbit rearing
- Other eligible livestock activities
The Department of Animal Husbandry and Dairying continues to promote KCC coverage for livestock farmers. More than 50 lakh animal-husbandry farmers were covered under KCC during FY 2025-26, according to government information released in August 2026.
What Expenses Can Be Paid Through Pashu KCC?
The facility is primarily meant to meet recurring working-capital requirements rather than finance an entire large livestock infrastructure project.
Depending on the activity and bank assessment, eligible expenses can include:
- Cattle or poultry feed
- Fodder
- Veterinary medicines
- Vaccination
- Labour expenses
- Electricity
- Water
- Minor repairs
- Insurance-related expenses where applicable
- Routine maintenance of livestock units
- Other recurring animal-rearing expenses
For example, a dairy farmer can use the working-capital facility to purchase cattle feed and pay veterinary expenses rather than borrowing separately every month.
Who Is Eligible for Pashu Kisan Credit Card?
Eligibility depends on the livestock activity.
Dairy Farmers
Eligible applicants can include:
- Individual dairy farmers
- Joint borrowers
- Tenant farmers
- Self Help Groups
- Joint Liability Groups
- Farmers owning cattle
- Farmers operating from owned, rented or leased sheds
Membership of a dairy cooperative or milk producer company can also make identification and processing easier in some cases. The Department of Animal Husbandry and Dairying has previously conducted special KCC drives for dairy farmers associated with milk cooperatives and producer companies.
Poultry Farmers
Eligible poultry applicants may include:
- Individual poultry farmers
- Joint borrowers
- Tenant farmers
- SHGs
- JLGs
The applicant should normally have access to an owned, rented or leased poultry shed and be genuinely involved in poultry activity.
Sheep, Goat, Pig and Other Livestock Farmers
Farmers engaged in rearing:
- Sheep
- Goats
- Pigs
- Poultry birds
- Rabbits
- Other eligible livestock
can also qualify, subject to having the required animals, sheds or other infrastructure and meeting bank conditions.
Importantly, a livestock farmer does not necessarily need to own agricultural land merely to qualify for animal-husbandry KCC. Tenant farmers and farmers using rented or leased sheds can also be eligible.
How Much Loan Is Available Under Pashu Kisan Credit Card?
There is no single fixed amount that every livestock farmer receives.
The sanctioned limit is based on the Scale of Finance, which is generally determined locally according to the type and scale of activity.
The calculation may consider:
- Number of cows or buffaloes
- Number of goats or sheep
- Number of poultry birds
- Feed requirement
- Veterinary expenses
- Labour cost
- Insurance
- Electricity and water expenses
- Other recurring production costs
The Scale of Finance may therefore be expressed on a per animal, per bird or per unit basis.
For example, a farmer maintaining four milch animals would normally have a different KCC requirement from another farmer operating a commercial dairy with 20 animals.
KCC Loan Limit Increased to ₹5 Lakh
The Government enhanced the Kisan Credit Card lending limit under the Modified Interest Subvention Scheme from ₹3 lakh to ₹5 lakh following the Union Budget 2025-26. Government material states that the enhancement is intended to improve credit availability for farmers, including dairy farmers and those engaged in allied activities.
However, ₹5 lakh should be understood as the applicable scheme ceiling rather than a guaranteed sanction.
A bank may sanction:
- ₹50,000
- ₹1 lakh
- ₹2 lakh
- ₹3 lakh
- Or a higher eligible amount
depending on the farmer’s actual working-capital requirement and the applicable Scale of Finance.
Interest Rate Under Pashu Kisan Credit Card
One of the biggest benefits of the KCC facility is concessional short-term agricultural credit.
Under the Modified Interest Subvention Scheme, eligible short-term KCC loans are provided at a concessional rate of 7% per annum.
Farmers who repay within the prescribed time can receive a further 3% Prompt Repayment Incentive.
This can reduce the effective interest burden to:
7% – 3% = 4% per annum
The government continued to describe the 7% concessional rate and 3% timely-repayment incentive in its March 2026 KCC updates.
The farmer must meet the repayment conditions to receive the full benefit. Delayed repayment can result in loss of the Prompt Repayment Incentive.
Is Pashu KCC a Government Subsidy?
Pashu KCC does not provide a capital subsidy for purchasing livestock in the same manner as schemes such as PMEGP or the National Livestock Mission.
Its main financial benefit is interest subvention.
This means the government helps reduce the cost of eligible bank borrowing instead of giving the farmer a portion of the livestock project cost as free cash.
A farmer planning to establish a new dairy, goat or poultry project may therefore need to examine other subsidy schemes separately, while using KCC for regular working-capital expenses.
Collateral Requirement
The collateral-free limit for short-term agricultural loans, including eligible allied activities, was raised from ₹1.60 lakh to ₹2 lakh per borrower with effect from January 1, 2025.
Therefore, eligible KCC borrowing up to ₹2 lakh can generally be provided without collateral, subject to applicable banking rules.
For higher amounts, the bank may examine:
- Security requirements
- Credit history
- Existing liabilities
- Repayment capacity
- Bank-specific lending policy
Applicants should confirm the exact security requirement with the financing bank when seeking a higher credit limit.
Documents Required for Pashu Kisan Credit Card
Exact documentation differs among banks and States, but applicants should normally keep the following ready:
- Aadhaar card
- PAN card, where required
- Recent photographs
- Address proof
- Bank account details
- Existing KCC details, if already a crop-loan borrower
- Details of animals or birds
- Proof of livestock activity
- Shed ownership, rental or lease documents where applicable
- Dairy cooperative membership details, where applicable
- Milk supply records, where available
- Existing loan details
- Any additional document required by the bank
Banks may also physically verify the livestock activity before sanctioning the credit limit.
How To Apply for Pashu Kisan Credit Card
Step 1: Approach a Participating Bank
Visit a bank providing agricultural KCC facilities.
These can include:
- Public sector banks
- Private-sector participating banks
- Regional Rural Banks
- Cooperative banks
- Other eligible financial institutions
Existing customers should first approach the branch where they already maintain their agricultural or KCC account.
Step 2: Ask for KCC for Animal Husbandry or Dairy
Tell the bank clearly that the credit is required for animal husbandry, dairy, poultry, goat farming or another eligible livestock activity.
A farmer who already has a crop KCC may request the bank to incorporate the eligible allied-activity requirement into the KCC structure rather than necessarily opening an entirely unrelated loan account.
Step 3: Complete the Application Form
The KCC system uses a simplified application process. The government has introduced a simplified KCC application form, and applications can also be facilitated through banking and digital channels.
Enter information such as:
- Applicant details
- Bank account
- Type of livestock activity
- Number of animals
- Shed details
- Existing credit
- Amount required
Provide accurate figures rather than requesting the maximum possible amount without justification.
Step 4: Submit Livestock Details and Documents
The bank may require proof of the actual animal-husbandry activity.
For example, a dairy farmer may provide:
- Number of milch animals
- Breed
- Milk production
- Cooperative membership
- Milk sale information
- Shed details
Similarly, poultry and goat farmers may have to provide information about flock or herd size.
Step 5: Bank Calculates the Credit Limit
The bank calculates the requirement based on the applicable Scale of Finance.
The limit is designed primarily to meet recurring operating expenditure.
A farmer with more animals can therefore qualify for a higher working-capital requirement if the activity is genuine and financially viable.
Step 6: Bank Verification and Sanction
The bank verifies:
- Identity
- Livestock activity
- Existing loans
- Credit history
- Repayment capacity
- Required working capital
Official animal-husbandry KCC guidelines state that complete applications should be processed expeditiously, with a target of up to two weeks after submission of a complete application, subject to verification and bank policy.
Step 7: Use and Repay the Credit Properly
Once sanctioned, KCC works as a revolving working-capital facility.
The farmer can draw funds according to business needs and repay them from income generated through milk, eggs, poultry or other livestock activity.
Repaying within the prescribed period is particularly important because it helps retain the Prompt Repayment Incentive.
Can Farmers Apply Online?
Digital access to KCC is expanding.
NABARD has introduced e-KCC facilities for Regional Rural Banks and Rural Cooperative Banks, while Common Service Centres can also assist farmers with digitally submitting eligible KCC applications to banks.
However, availability of a completely online process differs among banks and regions. Livestock farmers may still need branch-level verification before final sanction.
Main Benefits of Pashu Kisan Credit Card
The major advantages include:
- Affordable working-capital credit
- Coverage for dairy and animal husbandry
- Credit based on livestock activity
- Availability to tenant farmers in eligible cases
- Coverage of SHGs and JLGs
- Concessional KCC interest
- Effective interest as low as 4% for eligible prompt repayment
- Collateral-free agricultural credit up to the applicable ₹2 lakh limit
- Revolving credit instead of repeatedly taking separate small loans
- Reduced dependence on informal moneylenders
Pashu KCC vs Livestock Business Loan
Farmers should understand the difference between working capital and investment finance.
Pashu KCC is most suitable for recurring expenses, such as feed, medicines and daily operating costs.
A separate dairy, poultry or livestock term loan is generally more appropriate for major investments such as:
- Construction of a large shed
- Purchase of expensive machinery
- Milk chilling equipment
- Large-scale farm expansion
- Processing infrastructure
In some cases, farmers can use a term loan for fixed assets and KCC for day-to-day working capital.
Conclusion
Pashu Kisan Credit Card gives dairy and livestock farmers easier access to affordable working capital without requiring a fresh loan for every operating expense. The actual limit depends on the number of animals and local Scale of Finance, while timely repayment can significantly reduce the effective interest cost.
