Allahabad Bank Kisan Credit Card

Updated: 23-04-2021 06:58:38 AM

Allahabad Bank offers Kisan Credit Card to farmers under Akshay Krishi Scheme to assist them in agricultural activities. Getting funds from such formal sources saves the farmers from paying huge interest to the moneylenders from the unorganized sector. With the help of Kisan Credit Card, the farmers can arrange for their working capital needs as well as other short to medium-term capital requirements.

Features and Benefits of Allahabad Bank Kisan Credit Card

Allahabad Bank Kisan Credit Card Interest Rate

Allahabad Bank Kisan Credit Card Eligibility Criteria

Features and Benefits of Allahabad Bank Kisan Credit Card

With a Kisan Credit Card, farmers can avail the following benefits:

1. Timely Credit

As it is readily available, farmers can access credit to keep their crops safe from any hazard at any time.

2. Multi-Purpose Loan

This loan is segregated into three components to meet different needs. A term loan is provided to meet capital needs. Repayment duration is nine years. The crop loan provides cash credit for five years, the continuation, and the limit increase is decided after the annual review. Cash credit for household consumption, taking care or purchase of dairy animals or similar activities.

3. Credit Limits

Separate credit limits are set for different purposes that the Kisan Credit Card is used for-

Crop Loan Component – In the first year, the credit limit considers production credit + 30% for household expenses + 30% for emergency needs. 10% is added to the credit for subsequent years. Increase in scale and cost increment is considered.

Working Capital Component – 30% limit is provided for the first year for farm-related activities.

Term Loan Component – For term loan component, below-mentioned values should be met.

50% of the land value.
Seven times of calculated annual surplus from the present or ongoing activities of the farm along with equivalent activities.

4. Margin

For crop loan and loans above ₹ 1 Lakh, no margin is required.
If the credit limit was decided on 50% of the land value, no margin is required.
15% margin is compulsory when loans of more than ₹ 1 Lakh are taken.
For loans up to ₹ 1 Lakh, crops or other movable assets are hypothecated.
For loans exceeding ₹ 1 Lakh, security is taken as a lien over movable assets or crops along with any one of the following-
- Two people of secure and legally acceptable income should come as guarantors.
- Charge over liquid assets such as NSC, Fixed Deposit, KVP, and gold. Full cover to the limit is mandatory.
- Mortgage creation or charge is mandatory under the Agricultural Credit Operation Act of the concerned states.

5. Insurance

Following types of insurance benefits may be offered with a Kisan Credit Card-

Health insurance (optional).
Personal Accident Insurance Scheme.
Insurance covers some crops that are grown in approved areas. The insurance schemes comprise of-
- Modified National Agriculture Insurance Scheme (MNAIS),
- National Crop Insurance Programme (NCIP)
- Weather Based Crop Insurance Scheme (WBCIS)
- Coconut Palm Insurance Scheme (CPIS)

Please Note: Allahabad Bank is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.