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Allahabad Bank Kisan Credit Card 2024, Overview, Interest Rates & Eligibility

Overview

Allahabad Bank offers the Kisan Credit Card (KCC) with the name "Akshay Krishi Kisan Credit Card Scheme". It is a unique Scheme to provide adequate and timely credit support under a single window to the farmers for their cultivation and other needs.

Objective

To provide adequate and timely credit support under a single window to the farmers for their cultivation and other needs.

Eligibility

  • All Farmers - Individuals/ Joint borrowers who are owner cultivators.
  • Owner cultivator cultivating leased land along with self cultivated land.
  • Tenant Farmers, Oral Lessees & Share Croppers.
  • SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.

Facility

  • Crop Loan Component : Cash Credit where overall limit will be fixed for 5 year.
  • Allied Activities Component: Cash Credit - Working capital for activities allied to agriculture.
  • Term Loan Component: To meet Capital requirementswhere repayment is ensured within 9 years.

Credit Limit

  • Crop Loan Component is sanctioned for a period of 5 years, subject to renewal of the limit each year. In the first year, the credit limit consists of production credit + 30% for contingency + 30% for domestic expenses. For every subsequent year, 10% is added to the limit towards increase in scale of finance and escalation cost. It repeats upto 5th year.
  • As Working Capital Component, 30% of the first year limit is granted for allied activities.
  • Term loan is granted with a maximum limit of Rs. 10 lakhs & its repayment is ensured within 9 years. Term loan limit shall be restricted to 7 times of annual surplus generated from present/ proposed farm operations & activities OR 50% of the value of land.

Margin

  • For Cash Credit Component: Nil
  • For Term Loan: Nil
  • In all other cases for loan above Rs. 1,00,000 : 15%

Interest

  • On Debit Balances : As applicable for agricultural advances.
  • On Credit Balances in C/C Accounts : The interest as applicable to S/B account (presently 4%) shall be paid on credit balances on daily product basis.

Security

  • For loans up to Rs. 1,00,000.00 - Hypothecation of crops/movable assets.
  • For loans above Rs. 1,00,000.00 - Hypothecation of crops/movable assets & anyone of the following:
    1. Mortgage/Charge Creation of land as per Agricultural Credit Operation Act of the states concerned
    2. Charge/lien over liquid securities in the form of Fixed Deposit/NSC/KVP etc. and gold, providing full cover to the limit granted
    3. Guarantee from two persons of adequate means and repute - acceptable to the Bank.

Documentation

The document shall be executed for maximum limit fixed for the fifth year. There is no need of fresh document during the validity of the limit.

Classification

Advances under the scheme will be classified under Direct agriculture within Priority Sector.

Discretionary Authority

As per existing norms applicable to agricultural advances.

Interest Rate

  1. On credit balances in Cash Credit account: Savings bank account rate(currently 4%) which is paid on daily basis.
  2. On debit balances in Cash Credit account: As per the applicable agricultural advances rate. Interest rates are listed below:
    • Credit Limit: Up to Rs. 50,000 - Base rate i.e. 9.70%
    • Credit Limit: From Rs. 50,000 to Rs. 2 lakhs - Base rate + 1% i.e. 10.70%
    • Credit Limit: From Rs. 2 lakhs - Rs. 10 lakhs - Base rate + 2% i.e. 11.70%
    • Credit Limit: Above Rs. 10 lakhs ( For AB-1, AB-2 & AB-3)- Base rate + 2.50% i.e. 12.20%
    • Credit Limit: Above Rs. 10 lakhs ( For AB-4 & AB-5)- Base rate + 3.50% i.e. 13.20%
    • Credit Limit: Above Rs. 10 lakhs ( For AB-6 & AB-7)- Base rate + 5% i.e. 14.70%

Insurance

  • Specified crops grown in notified areas will be covered under NCIP (National Crop Insurance Programme), Modified National Agriculture Insurance Scheme/(MNAIS)/ Weather Based Crop Insurance Scheme(WBCIS) /Coconut Palm Insurance Scheme (CPIS) as operated by concerned State Government
  • Personal Accident Insurance Scheme (PAIS)
  • Optional Health Insurance for famer customers

What is Personal Accident Insurance Scheme (PAIS) for KCC Holders?

Personal Accident Insurance Scheme (PAIS) is an accident insurance scheme especially designed for KCC holders. NABARD has, in consultation with the representatives of insurance companies, bankers and Govt. of India, finalised the Personal Accident Insurance Scheme for KCC holders, for uniform implementation by banks throughout the country. It was introduced on 14 June 2001.

It covers risk of KCC holders against:

  • Death (or)
  • Permanent Disability

Death (within 12 months of the accident) or permanent disability should be resulting from accidents caused by external, violent and visible means.

It gives following risk covers:

  1. Death due to accident (within 12 months of the accident) caused by outward, violent and visible means: Rs 50,000
  2. Permanent total disability: Rs.50,000
  3. Loss of two limbs or two eyes or one limb and one eye: Rs.50,000
  4. Loss of one limb or one eye: Rs.25,000

KCC holder has the option to take benefit of Accident Insurance (including PAIS) whose premium has to be paid by him through his KCC account. Premium payable Rs.15/- for a one year policy while Rs.45/- for a 3-year policy. Premium has to be borne by farmers/bank according to the terms of the Scheme. To avail this insurance cover, the applicant should not be over 70 years of age at the time of availing the Kisan Credit Card

 

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