Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Allahabad Bank Kisan Credit Card

    Allahabad Bank offers the Kisan Credit Card under the Akshay Krishi Scheme to farmers who require financial assistance. The loan is available to all farmers for the purpose of agricultural and allied activities. The Kisan credit card comes with attractive benefits and at low interest rates. The Government also offers interest subventions from time to time on this scheme to promote the agricultural sector. With long tenures, this loan scheme benefits farmers, share croppers, oral lessees, and SHGs.

    Features and Benefits of Allahabad Bank Kisan Credit Card:

    Timely credit:

    With the Allahabad Bank Kisan Credit Card, farmers have access to credit when they need it to take care of their cultivation and allied needs.

    Multi-purpose loan:

    The loan provided is broken down into three components.

    • The crop loan component consists of cash credit sanction for a period of 5 years. The continuation of the loan and increasing the credit limit is subject to annual review and renewal.
    • Allied activities comprises of cash credit required for home consumption, dairy animals, and so on.
    • Term loan component is given to meet capital requirements. The repayment period is 9 years.

    Credit Limits:

    • Crop Loan Component - In the first year, the credit limit consists of production credit + 30% for contingency needs + 30% for household expenses. For every subsequent year, 10% is added to the limit. This is done in consideration of increase in scale and cost escalation.
    • Working Capital Component - 30% of the first year limit is granted for allied activities.
    • Term Loan Component - The credit limit is considered based on either of the values given below.
      1. Up to 7 times the annual surplus that is generated from the present or proposed operations of the farm including allied activities.
      2. 50% of the land value.


    • For loans up to Rs. 1 lakh, there is no margin required.
    • There is no margin required for the crop loan component.
    • There is no margin required for the term loan component if the credit limit was determined based on 50% of the land value.
    • In all other cases here loans exceed Rs. 1 lakh, 15% margin is required.


    • For loans up to Rs. 1 lakh, only hypothecation of the crops and movable assets is required.
    • For loans above Rs. 1 lakh, hypothecation of the crops and movable assets is required plus one of the following.
      • Lien or charge over liquid securities such as NSC, Fixed Deposit, KVP, and gold. Full cover to the limit must be granted.
      • Charge or mortgage creation of land done as per Agricultural Credit Operation Act of the concerned states.
      • A guarantee by two reputable people of adequate means that that bank deems acceptable.


    • Insurance will cover specific crops that are cultivated in notified areas. The insurance schemes include the National Crop Insurance Programme (NCIP), Weather Based Crop Insurance Scheme (WBCIS), Modified National Agriculture Insurance Scheme (MNAIS), and the Coconut Palm Insurance Scheme (CPIS) as operated by government in the concerned state.
    • Personal Accident Insurance Scheme.
    • Health insurance is optional.

    Interest rates:

    The interest rates on the Akshay Krishi Kisan Credit Card scheme are classified into debit and credit balances.

    • On credit balances in Cash Credit account, the interest rate is based on the Savings bank account rate. This is currently 4% and will be paid on the credit balance calculated on a daily basis.
    • For debit balances, the interest rate is charged as per the applicable agricultural advances rate. The table for interest rates is listed below. For loans above Rs. 10 lakhs, the interest rate is linked to the rating of the account.
    Credit Limit Component of Interest Interest rate
    Up to Rs. 50,000 Base rate 9.70%
    Rs. 50,000 - Rs. 2 lakhs Base rate + 1% 10.70%
    Rs. 2 lakhs - Rs. 5 lakhs Base rate + 2% 11.70%
    Rs. 5 lakhs - Rs. 10 lakhs Base rate + 2% 11.70%
    Above Rs. 10 lakhs    
    AB-1 Base rate + 2.50% 12.20%
    AB-2 Base rate + 2.50% 12.20%
    AB-3 Base rate+ 2.50% 12.20%
    AB-4 Base rate + 3.50% 13.20%
    AB-5 Base rate + 3.50% 13.20%
    AB-6 Base rate + 5.00% 14.70%
    AB-7 Base rate + 5.00% 14.70%

    Allahabad Bank Kisan Credit Card Eligibility:

    The eligibility criteria for the Allahabad Bank Akshay Krishi Kisan Credit Card Scheme is detailed below.

    • Any Farmer is eligible. Individuals and joint borrowers who are owner cultivators can apply.
    • Tenant Farmers, Share Croppers and Oral Lessees are eligible.
    • Owner cultivators who are cultivating leased land as well as self-cultivated land can apply.
    • Joint Liability Groups of Farmers or SHGs which includes share croppers, tenant farmers, etc, are also eligible.

    How to apply for an Allahabad Bank Kisan Credit Card?

    You can apply for an Allahabad Bank Kisan Credit Card using the following methods.

    • You can apply for this credit card online by visiting the bank’s website.
    • You can approach the nearest Allahabad Bank branch.

    Other Agricultural Products offered by Allahabad Bank:

    Crop Loan:

    • Akshay Krishi
    • Potato Growers

    Term Loan:

    1. Allied Activities
    2. Development Loans
      • Loans under National - Rural Livelihood Mission (NRLM)- Aajeevika
      • Restructuring of SJSRY - as National Urban Livelihood Mission (NULM)- Aajeevika
      • Scheme for Financing SHGs or Self Help Groups
      • Scheme for Financing Joint Liability Groups (JLGs) of Small Farmers (SF), Marginal Farmers (MF), Tenant Farmers, Oral Lessees and Share Croppers
      • Scheme for Financing Joint Liability Groups (JLGs) of Micro Entrepreneurs, Artisans, Others in Rural Non Farm sector
      • Scheme for re-lending to Individual Borrowers - (Singly or Jointly) who have settled their Direct Agriculture Loan dues under Compromise / One Time Settlement Scheme (OTS) / Legal Action
      • Non-Institutional Debt - Swapping Scheme for farmers and Agricultural labourers
      • Tractor/ Power Tiller
      • Purchase of land
      • Cold Storage
      • Godown under FCI
      • Rural Godown

    FAQs on Allahabad Bank Kisan Credit Card

    1. Is there any interest subsidy available under the Allahabad Bank Akshay Krishi Kisan Credit Card Scheme?

      Yes, interest subsidy is available as and when the State or Central Government announces. Interest subvention is granted to promote the agricultural sector.

    2. What security can I offer if I do not own the land?

      You only need to offer collateral in case your loan exceeds Rs. 1 lakh. For these loans you need to hypothecate the crops and movable assets on your farm to Allahabad Bank. You also need to offer collateral in the form of land mortgage. You can alternatively offer either of the following:

      • Guarantee from two people of adequate means which is acceptable to Allahabad Bank.
      • Charge over liquid securities. This could be a fixed deposit, National Savings Certificate, KVP, etc. Gold is also acceptable provided full cover up to the loan limit is granted.
    3. What do debit and credit balance mean?

      If you have a debit balance in your cash credit account, this means you have money remaining in your loan account. In this case, the bank will pay you interest of 4% on a daily basis for the amount you have left in your cash credit account.

      If you have a credit balance, this means you have used the loan money and will be charged as per the agricultural loan rates.

    4. What is the maximum loan amount I can get under the Allahabad Bank Akshay Krishi Kisan Credit Card Scheme?

      The loan limit is divided into crop loan, working capital and term loan.

      • Crop loan limit is determined by the Production credit + 30% for Contingency + 30% for Domestic Expenses. From the second year, 10% is added to the limit.
      • The Working capital is 30% of the first year limit of crop loan.
      • The maximum term loan limit is Rs. 10 lakhs.

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