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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.

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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. [email protected] 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.