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Sinduja Shankar

Expert

Published on: Jul 30, 2026

Kisan Kalpataru Scheme - Andhra Bank

The Andhra Bank is one of the leading financial banking sectors which offers Kisan Kalpataru Scheme to the farmers for agricultural purposes. The primary objective of the AB Kisan Kalpataru Scheme is to satisfy the term credit requirements of the farmers to carry out various farm activities. In this article, we look at the AB Kisan Kalpataru Scheme in detail. To know about

Andhra Bank Current Account 

Fields Covered Under this Scheme

The following are the agriculture fields focused on this scheme are as follows:

  • Farm Mechanization
  • Land Development
  • Minor Irrigation
  • Water Conservation
  • Horticulture
  • Allied activities
  • Other agriculture-related activities

Eligibility Criteria

The below are the eligibility criteria to apply for the Kisan Kalpataru Scheme in Andhra Bank:

  • Individual Farmer or Joint/Group of Farmers owner-cultivators who are engaged in Agriculture and related farm activities
  • The applicant must be an existing borrower who is getting either Agriculture credit or Non-Agriculture credit facilities with a minimum of 3 years of satisfactory dealings in any bank branch.
  • In the case of joint applicant farmers, then any one of the member to be an owner farmer.
  • Corporates such as Partnership firms, Companies, etc., are not eligible to apply for this scheme.

Documents Required

The documents that have to be possessed by the applicant are given below:

  • Application form (Duly filled)
  • Identity Proof: PAN, Aadhar Card, Driving License, Voter Identity Card, etc.
  • Address Proof: Aadhar, Valid Passport, Utility bill, Property tax bill, etc.
  • Any other document required by the bank  

Type of Loan

  • A term loan limit is repayable within a maximum time frame of 9 years.
  • The objects for which the limit is provided would not be a part of the Kisan Credit Card (KCC) limit.

Quantum of Loan

The quantum of loan is based upon the investment plan given by the farmer to be initiated in the next 2 to 3 years with subject to the approval of the bank as per extant provisions. The plan can be a compound of investment and development activities relating to agriculture and allied activities.

  • The limit would also be fixed lower of the below following criteria:
    • Applicant must possess their own Agriculture land.
    • Term loan limit would be assessed based upon the different farm activities undertaken by the farmer applicant duly considering the economic viability of the unit with the maximum ceiling of Rs. 25 lakhs.
Note: If the borrower desires to change the farm activity in the due course, then it will be accepted as per eligibility criteria subject to not exceeding the pre-assessed limit.

Margin Money

  • A minimum of 15% of the unit cost to be paid by the Small and Marginal farmers, and for other farmers, it would be 25%.
  • The entire margin money need not be brought in upfront for the entire limit. Only at the creation of the asset, the required margin money would be brought.

Co-obligant/Guarantor

A third party guarantee/co-obligant who is suitable to be provided as per current guidelines.

Security

Primary security

Hypothecation of assets is formed out of a bank loan.

Collateral security

Amount Collateral security
To the maximum amount up to Rs. 1.50 lakhs No collateral security
To the maximum amount up to Rs. 2 lakhs No collateral security to the borrowers with the prompt repayment track record of 3 years
To the maximum amount up to Rs. 3 lakhs No collateral security to the borrowers with the prompt repayment track record of 5 years
For limits above Rs. 1.50 lakhs, Rs. 2 lakhs or Rs. 3 lakhs, the case may be as follows–
  • By way of mortgage, a minimum of 2 Acres of Agriculture land must be provided
  • In the case of the land-based activities, the total extent of agriculture property must be mortgaged where the farm activity is proposed as collateral security.
  • Note: The Reschedulement or Replacement of loans due to the natural calamity will not be treated as an irregularity in repayment of the loan. The instalment of restructured loans must have been paid within 3 months of the due date.

Rate of Interest 

For the MCLR based interest rates along with the term Premium. The applicable term premium is tabulated below:

Repayment period Term premium
Up to 36 months NIL
>36 months up to 60 months 0.25%
>60 months 0.50%

Repayment Period

The repayment period will be separately drawn for drawn each agricultural activity undertaken by the farmer. This will be based on the cash flows, and tenure would be fixed based on the viability of the activity, but it must not be exceeding more than 9 years.

Penal Interest

Penal Interest is given as per the guidelines of RBI.

  • Up to Rs. 25000 -  Nil
  • Above Rs. 25000-@ 2%

Upfront fee

The upfront fee is exempted for the Small and Marginal farmers irrespective of the limit and for the other framers the upfront fee will be as specified below:

Up to Rs.25000/- Nil
Above Rs 25000/- up to Rs. 2 lakhs Rs 1000/- per loan
Above Rs. 2 Lakhs up to Rs. 25 Lakhs 1.30% of the limit with a minimum of Rs. 3000/-
Unit inspection charges
Up to exposure of Rs 5 lakhs Rs. 75/- per quarter
More than Rs. 5 lakhs up to Rs. 25 lakhs Rs. 250/- per quarter 
Note: The Small and Marginal farmers will not be charged for Unit Inspection irrespective of the limit. All other service charges, such as Documentation, Mortgage, Term loan annual review charges, etc., are applied for all category of farmers under this Kisan Kalpataru scheme.

Insurance

The assets created must be insured for the full market value.

Sanction

A composite approval for all the activities proposed to be undertaken by the farmer applicant with the separate sub-limits for each activity with the duly incorporating details on margin, repayment schedule, etc., will be provided.

Application Procedure

To apply for the Kisan Kalpataru Scheme, the farmer applicant has to follow the below procedure:

Step 1: The applicant will have to approach the nearest bank branch to apply for the scheme.

Step 2: The applicant must fill out the Kisan Kalpataru Scheme application form with all the requested details and have to attach the specified documents as required.

Step 3: After completing the application form, submit it to the concerned bank official.

Step 4: Upon submission, the verification process will be done by the bank official.

Step 5: Then the applicant will be provided with an acknowledgement slip for further reference.

Back to Learn

Frequently Asked Questions

Common questions about Kisan Kalpataru Scheme for Farmers.

The Kisan Kalpataru Scheme is a term loan facility offered by Andhra Bank to farmers for meeting their credit requirements related to various agricultural activities. It aims to provide financial assistance to farmers for undertaking farm mechanization, land development, minor irrigation, water conservation, horticulture, and other allied agricultural activities.
Individual farmers or joint/group of farmers who are owner-cultivators engaged in agriculture and related farm activities are eligible for the Kisan Kalpataru Scheme. They must be existing borrowers with a minimum of 3 years of satisfactory dealings in any bank branch. Corporates such as partnership firms or companies are not eligible for this scheme.
The required documents include a duly filled application form, identity proof (PAN, Aadhar Card, Driving License, Voter ID, etc.), address proof (Aadhar, Passport, utility bill, property tax bill, etc.), and any other document specified by the bank.
The maximum loan amount available under the Kisan Kalpataru Scheme is Rs. 25 lakhs. The quantum of the loan is based on the investment plan provided by the farmer and is subject to the bank's approval and economic viability of the unit.
The repayment period for the Kisan Kalpataru Scheme is a maximum of 9 years. The repayment schedule is drawn separately for each agricultural activity undertaken by the farmer, based on the cash flows and viability of the activity.
For loan amounts up to Rs. 1.5 lakhs, no collateral security is required. For amounts above Rs. 1.5 lakhs, a minimum of 2 acres of agricultural land or the total extent of agricultural property where the farm activity is proposed must be mortgaged as collateral security.
Small and marginal farmers are required to contribute a minimum of 15% of the unit cost as margin money, while for other farmers, it is 25%. The margin money need not be brought upfront for the entire limit but only at the creation of the asset.
Small and marginal farmers are exempted from upfront fees irrespective of the loan amount. For other farmers, an upfront fee of 1.3% of the loan amount with a minimum of Rs. 3,000 is applicable for loans above Rs. 2 lakhs.
Yes, the assets created under the Kisan Kalpataru Scheme must be insured for their full market value.
To apply for the Kisan Kalpataru Scheme, the farmer must approach the nearest Andhra Bank branch, fill out the application form, attach the required documents, and submit the application to the bank official. After verification, the applicant will receive an acknowledgment slip for further reference.