The Kisan Credit Card scheme was launched throughout the country in the month of August in 1998. The main objective behind this scheme was to help the farmers, by reducing their dependence on the lucrative yet exorbitant informal money lenders. Andhra Bank provides Kisan Credit Cards that help a farmer to carry out his cultivation needs. Not just that, the Kisan Credit Cards also gives the farmer many other benefits. Let us take a look at the features and benefits of the Andhra Bank Kisan Credit Card.
Credit Limit – The bank fixes a credit limit that revolves around the cropping pattern, holding of land and the share of finance for Kharif and Rabi crop season. There is an additional 10%-20% for maintenance, repair and insurance (personal accident, crop and asset insurance). An extra 10% allows the farmer to meet the post-harvest expenses. For requirements like irrigation, development of land, etc. the credit card also makes the farmer eligible for a term loan.
Repayment – The Andhra Bank Kisan Credit Card has five-year validity, and every year the card is renewed. The cardholder does not need to make the debit balance to be nil at any time. Within a year of the first withdrawal, the repayment has to be made.
Security – For both current and future crops, hypothecation is needed for up to credit card limit of ₹ 50,000. In case the amount is between ₹ 50,000 and ₹ 1,00,000, then a third party guarantee with hypothecation of the crops and the assets is needed.
Please Note: Andhra Bank is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.