Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
The Kisan credit card scheme offered by Andhra Bank intends to cover the production and cultivation needs of farmers. The Kisan credit card also provides for other investment needs to establish dairy farms, and poultry shelters and also supports allied agricultural activities. If a farmer procures a Kisan card from Andhra Bank, the facilities available to him/her are cash withdrawals and funds for purchasing fertilizers, seeds, pesticides and other equipment.
Credit Limit:
Andhra bank will fix a revolving credit limit based on the cropping pattern, land holding and the quantum of finance for Rabi and Kharif crop seasons along with an additional limit of 10%, a limit of 20% for farm asset maintenance and repairs and insurance cover in the form of personal accident insurance, crop insurance and asset insurance. This extra limit of 10% is given to meet household expenses and post-harvest requirements of farmers. A term loan limit is also set to meet investment requirements like minor irrigation activities, land development, allied agricultural activities and buying farm equipment.
The maximum permissible limit (MPL) will be calculated based on the short-term limit of the fifth year along with the estimated long-term loan amount. This will be considered as the limit of the Kisan Credit Card.
Kisan credit card holders can also get a RuPay card from Andhra Bank. The assigned drawing limit can be taken using the mentioned methods -
Repayment:
An Andhra Bank Kisan credit card comes with a validity of five years. The bank will also carry an annual review on the card. It is not required for the card holder to make the debit balance nil at any time. If the credits are equal to the principal debits, other charges and debits relevant to the interest, then the bank considers that the repayment has been done. This repayment should be done within one year after the first drawal date for Rabi and Kharif crops. The term loan should be paid back within five years, depending on the borrower.
Security:
Hypothecation of crops (current and future) is required for up to a KCC limit of Rs. 50,000. If the loan amount is more than Rs. 50,000 and within Rs.1, 00,000, a third-party guarantee or a co-obligation along with hypothecation of the assets and crops is required. For loan amounts over Rs.1, 00,000, a collateral security equal to a hundred per cent of the loan amount should be given. This should be in the form of land mortgage, mortgage of charge as per state laws, in addition to third-party guarantee or co-obligation and hypothecation of crops. If the borrower has been regularly paying his debts for the last three years, then collateral security for aggregate limit up to an amount of Rs. 1, 50,000 should not be taken. If the borrower has been regularly paying his debts for the last five years, then collateral security for aggregate limit up to an amount of Rs. 2, 00,000 should not be taken.
For sugarcane tie-ups, the hypothecation of crops to up to a limit of Rs. 3 lakhs should be done for borrowers. Collateral security is not required here, but a co-obligation from a cultivator of equal status should be taken. For tobacco tie-ups, the hypothecation of crops to up to a limit of Rs. 10 lakhs should be done for farmers.
Other Features:
The Pattabhi Agri Card is a Kisan card that offers exceptional features to farmers and provides loans for crop production. Card holders can withdraw cash,and make agricultural purchases like fertilizers, seeds, pesticides, etc. Additionally, Pattabhi Agri Card holders can also get accident insurance for a value of Rs. 1, 00,000 as per the Bank's Insured Current Deposit Scheme. The insurance cover is offered as an optional benefit for farmers.
A Kisan Credit Card holder also has the option of taking health insurance, PAIS and asset insurance along with the loan.
The AB Pattabhi Agri Card comes with a validity of five years.
Credit Limit:
Initially, Andhra Bank will fix a revolving credit limit based on the farmer’s requirement and the quantum of finance for both Rabi and Kharif crop seasons. An additional 10% will be sanctioned to meet household expenses and post-harvest costs for farmers. 20% of the allotted limit would be dedicated towards crop insurance, repair work, farm maintenance, asset insurance and PAIS. A specific limit will also be set for term loans taken for investments done for minor irrigation, development of land, allied agricultural activities and for purchasing farm equipment. The maximum permissible limit (MPL) will be calculated based on the short-term limit of the fifth year along with the estimated long-term loan amount. This will be considered as the limit of the Kisan Credit Card.
Optional Features:
AB Pattabhi Agri Card holders can also get RuPay Kisan cards from Andhra Bank. The assigned drawing limit can be taken using the mentioned methods - a) through the branch, b) through cheques, c) ATM/Debit card withdrawals, d) through ultra-thin branches and Business Correspondents, e) at Point of Sale (PoS) at sugar mills and contract farming companies for tie-up advances, f) PoS with input dealers and g) mobile transfers at mandis and agricultural input dealers.
Other Features:
The AB Kisan Vikas Cards takes banking a step ahead by incorporating technology while issuing crop loans for farmers. Customers holding AB Pattabhi Agri Cards can get access to ATMs to make cash withdrawals via the Andhra Bank Kisan Vikas Card. An AB Kisan Vikas Card is generally issued for short-term crop production loans and the same terms and conditions will be applicable on an AB Kisan Vikas Card that an AB Pattabhi Agri Card carries.
Card Limit:
The quantum of finance is determined by Andhra Bank based on the land held by the farmer, the required loan amount and cropping patterns.
Validity:
The AB Kisan Vikas Card is valid for a period of three years and comes with a renewal facility.
Insurance:
The borrower can get insurance cover as per the Personal Accident Insurance Scheme (PAIS) with a nominal premium.
Service Charges:
The AB Kisan Vikas Card will be issued at no extra cost and will be completely free for farmers.
Interest Rates:
The interest rates levied will be determined by Andhra Bank as per market conditions and other factors.
The AB Kisan Sampathi scheme offers finance for distress sales of crop produce after harvest. This is given when the price of the produce is quite low.
Loan Amount:
The loan amount that is sanctioned is 65% of the average market rate stipulated by the Agriculture Market Committee for the previous three years or procurement prices announced by the Government, whichever is lower. The maximum amount will be Rs. 50, 00,000 for one farmer applicant. The loan amount will be determined based on the area of the land and the yield of the crop got by the farmer.
Security:
As primary collateral, the stored produce or warehouse receipts issued by the Centre or the State ware house Corporations and Food Corporation of India/ godowns/ Bank approved Cold storage facilities should be pledged by the farmer. For stored produce with the farmer and sticks available under the collateral management of National Collateral Management Services Ltd, with a loan limit of up to Rs. 2 lakhs, no security will be asked. For loan amounts above Rs. 2 lakhs, collateral security of more than 100% of the loan shall be taken, i.e., a guarantee of two individuals meeting the required value. For stored produce at CWC/SWC/FCI, with a loan limit up to Rs. 10 lakhs, no security will be asked, but a guarantee from two people will be taken For loan amounts above Rs. 10 lakhs to up to Rs. 50 lakhs, collateral security of more than 100% of the loan shall be taken, i.e., guarantee of two individuals meeting the required value.
Other Conditions:
Andhra Bank's Base Rate = 10.25% per annum
| Schemes | For Individual farmers | Non-Corporate / Corporate borrowers | ||
|---|---|---|---|---|
| Short-Term Production Loans - Kisan Credit Card / PAGCC accounts | ||||
| Tobacco Tie-ups | Base Rate / 10.25% | Base Rate / 10.25% | ||
| Other Crops (Nurseries included) | Base Rate + 1.75% = 12.00% p.a | CRS/CRAS Ratings | CRRM Ratings | Interest rates |
| A+++ | A++ | Base Rate + 1.50% | ||
| A++ | Base Rate + 1.75% | |||
| A+ | A+ | Base Rate + 2.00% | ||
| A | A | Base Rate + 2.00% | ||
| B | B++ | Base Rate + 1.75% | ||
| C | B+/B | Base Rate + 2.50% | ||
| D | C | Not accepted | ||
| Fisheries | Base Rate +1.50% = 11.75% | CRS/CRAS Ratings | CRRM Ratings | Interest rates |
| A+++ | A++ | Base Rate + 1.50% | ||
| A++ | Base Rate + 1.75% | |||
| A+ | A+ | Base Rate + 1.75% | ||
| A | A | Base Rate + 1.75% | ||
| B | B++ | Base Rate + 2.00% | ||
| C | B+/B | Base Rate + 2.50% | ||
| D | C | Not accepted | ||
| Kisan Sampathi - Produce Marketing loans |
Loan amounts up to Rs. 5 lakhs - Base Rate / 10.25% Loan amounts above Rs. 5 lakhs to up to Rs.10 lakhs - Base Rate + 0.50 = 10.75% Loan amounts above Rs. 10 lakhs to up to Rs.25 lakhs - Base Rate + 1.50 = 11.75% |
Loan amounts up to Rs. 5 lakhs - Base Rate / 10.25% Loan amounts above Rs. 5 lakhs to up to Rs.10 lakhs - Base Rate + 0.50 = 10.75% Loan amounts above Rs. 10 lakhs to up to Rs.25 lakhs - Base Rate + 1.50 = 11.75% |
||
| Working capital limits - Poultry | Base Rate + 1.00% = 11.25% | CRS/CRAS Ratings | CRRM Ratings | Interest rates |
| A+++ | A++ | Base Rate + 0.50% | ||
| A++ | Base Rate + 0.50% | |||
| A+ | A+ | Base Rate + 0.50% | ||
| A | A | Base Rate + 0.75% | ||
| B | B++ | Base Rate + 1.00% | ||
| C | B+/B | Base Rate + 1.25% | ||
| D | C | Not accepted | ||
| Self-Help Groups - cash credits Farm/ non-farm sector | Base Rate + 3.25% = 13.50% | NA | ||
Agricultural Term Credit:
Women Empowerment:
Special Schemes:
Rural Self Employment Training Institutes - RSETIs
Agri Procedure
Yes, customers will be able to apply for crop loans under the Kisan credit card scheme on the Andhra bank website.
Yes, along with the Kisan credit card holders can also get mandatory crop insurance, personal accident insurance, health insurance and asset insurance.
Yes, Andhra Bank does impose a limit on the crop loans and term loans, depending on the applicant’s crop patterns, land held and quantum of finance required.
Interest rates are determined based on the base rate of Andhra Bank. An additional interest rate percentage will be added to arrive at the total interest rate.
Yes, loan applicants will be able to easily check the status of their KCC applications online on the bank’s website.
No, crop insurance is mandatory for loanee farmers and all eligible crops are covered.
Yes, here are the other agricultural offers by Andhra Bank:
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
