Andhra Bank
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KISAN KALPATARU
 
 Objectives

A Term loan limit to the farmer for all his term credit requirements to carry out different farm activities like Farm Mechanization, Land Development, Minor Irrigation, Water Conservation, Horticulture, Allied activities and other agriculture related activities etc.

 
 Eligibility

Applicant (Individual, Joint/Group of Farmers-owner cultivators engaged in Agriculture and related activities) should be an existing borrower who is enjoying either Agriculture credit or Non Agriculture credit facilities with minimum of 3 years of satisfactory dealings in any branch of our Bank.

In case of joint applicants, any one of them must be an owner farmer.

Corporates like Partnership firms/Companies etc., are not eligible under this scheme.

 
Type of Loan


A Term loan limit repayable within a maximum period of 9 years.
The purposes for which the limit is granted shall not be a part of the Kisan Credit Card (KCC) limit.

 
 Quantum of loan/Ceiling limit

Quantum of loan is to be based on the investment plan given by the farmer to be undertaken in the next 2-3 years subject to approval of bank as per extant guidelines. The plan can be a combination of investment/development activities relating to agriculture and allied activities.

 
 Limit shall be fixed lower of the following:

  1. Applicant should possess own Agriculture land.
  2. Term loan limit shall be assessed based on the different activities undertaken by the applicant duly considering economic viability of the unit with maximum ceiling of Rs 25.00 lakh.
Note: If the borrower wants to change the activity in due course, it will be accepted as per eligibility subject to not exceeding the pre -assessed limit.
 
 Unit cost

Unit cost as prescribed by the NABARD (state specific).
 
 Margin:

Small and Marginal farmers:                 15%
Other farmers                                       25%

The entire margin need not be brought in upfront for the entire limit. The required margin may be brought at the time of creation of asset only.

 
 Co-obligant/Guarantor

Suitable third party guarantee/ co-obligant to be provided as per extant guidelines.
 
 Security

Primary security: Hypothecation of assets created out of bank loan.

 
 Collateral security

Up to Rs. 1.50 lakh- No collateral security
Up to Rs 2.00 lakhs- No collateral security to the borrowers with *prompt repayment track record of 3 years
Up to Rs 3.00 lakhs- No collateral security to the borrowers with *prompt repayment track record of 5 years

For limits above Rs 1.50 lakh/Rs 2.00 lakh/Rs 3.00 lakh as the case may be –

  • Minimum of 2 Acres of Agriculture land by way of mortgage should be provided
  • In case of land based activities, total extent of agriculture land should be mortgaged where the activity is proposed as collateral security.
  • *Prompt payment track record means farmer repaying the loan/ installment of loan within 3 months from the due date consistently for 3/5 years. Reschedulement/ Rephasement of loans due to natural calamity will not be treated as an irregularity in repayment of loan. The installment of restructured loans should have been paid within 3 months of due date.

 
 Rate of Interest

MCLR+ *Term Premium
*Applicable term premia as below:
Repayment period Term premium
Up to 36 months NIL
>36 months upto 60 months 0.25%
>60 months 0.50%
 
 Repayment

Repayment schedule will be drawn separately for each activity based on the cash flows and tenure shall be fixed based on the viability of the activity but not exceeding 9 years.

 
 Penal Interest

As per guidelines of RBI.
Up to Rs.25000/                 - Nil
Above Rs.25000/               - @ 2%

 
 Upfront fee

Upto Rs.25000/- Nil
Above Rs 25000/- upto Rs 2.00 lakh Rs 1000/- per loan
Above Rs 2.00 Lakh upto Rs 25.00 Lakhs 1.30% of the limit with minimum of Rs 3000/-

*Upfront fee is exempted for Small and Marginal farmers irrespective of the limit

 
 Unit inspection charges

Upto exposure of Rs 5.00 lakh Rs 75/- per quarter
More than Rs 5.00 lakh upto Rs 25.00 lakh Rs 250/- per quarter

* Unit Inspection charges are exempted for Small and Marginal farmers irrespective of the limit
All other service charges (Mortgage/Documentation/ Term loan annual review charges etc.,) are exempted for all category of the farmers under this scheme.

 
 Insurance

Assets created have to be insured for full market value.

 
 Sanction

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

 
For further details contact the nearest branch
 
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