Andhra Bank - Kisan Sampathi Scheme

Andhra Bank has launched a scheme entitled “Kisan Sampathi” for the farmers in the state. Under this scheme, the bank provides security to the farmers against distress sales of their crop production when the prices are low. In this article, we look at the Kisan Sampathi in detail. To know about Kisan Kalpataru Scheme – Andhra Bank

Features of the Scheme

The below following are the features of the AB Kisan Sampathi Scheme:

This scheme helps needy farmers to get agricultural loans at ease.
It is mandatory for all the eligible farmers to have a bank account.
The Bank branch will directly transfer the subsidy to the farmer’s account.
This scheme also aims to improve the financial status of farmers to promote stability in their livelihood.
Collateral for loan – The scheme also ensures to make the availability of agricultural credit secure and easy.

Eligibility Criteria

The farmer applicant should satisfy the below criteria to apply for the AB Kisan Sampathi scheme:

Loans can be sanctioned to all farmers.
Both loanee and Non-loanee farmers are eligible to apply for this scheme.
Loanee Farmers who already availed crop production loans should not be overdue.

The below mentioned are some of the eligible crops under AB Kisan Sampathi scheme:

Paddy
Groundnut, Rapeseed/Mustard
Bengal Gram (Chana), Arhar/tur
Turmeric
Dry chillies
Maize
Millets (Jowar/Ragi/Bajra)
Yam
Green gram, Black gram
Jaggery

Purpose of the Scheme

The purpose of the scheme is to meet the requirements of short term credit to adjust/repay the outstanding Kisan Credit Card (KCC) limit availed by farmers from the bank. This scheme offers the facility of loan against the stocks stored in farmhouses, in addition to the loan against warehouse receipts.

Documents Required

The following documents/Proofs are to be furnished along with the application form:

Application form (Duly filled)
Identity Proof: Aadhaar, Driving License, PAN card, Voter Identity Card, etc.
Address Proof: PAN, Valid Passport, Utility bill,
Bank account details.
Passport size photo of the applicant.
Any other document required by the bank

Quantum of Loan

65% of the average market value of the past 3 years (as obtained from Agriculture Market Committee) or at Government announced procurement prices whichever is lower, subject to a maximum of Rs. 50 Lakhs per farmer.
The limit will be based on the area of crop cultivated by the farmer and yield thereon.

Repayment Period

The loan must be repaid within a maximum period of 12 months, based on the shelf life of the commodity stored.

Security

Primary Security: The security of produce stored with the cultivator or by the security of warehouse receipts issued by:

(i) Godowns and cold storages approved by the Bank.

(ii) Central and State warehouse Corporations and Food Corporation of India.

Collateral Security: Produce stored with the cultivator,

Limits up to Rs. 2 Lakhs: NIL
Above Rs. 2 Lakhs: Collateral security not less than 75% of the bank loan component to be obtained, besides suitable guarantee of two persons of sufficient worth.

Produce stored at CWC/SWC/FCI/STARAGRI approved warehouse:

Limits up to Rs. 10 Lakhs: NIL (But the personal guarantee of two persons required).
Above Rs. 10 Lakhs and up to Rs. 50 Lakhs: Collateral security not less than 75% of the bank loan component to be obtained, besides the guarantee of two persons of sufficient worth.

Rate of Interest

Loan Amount

For individual borrowers

For Corporate and Non-Corporate borrowers

Kisan Sampathi Scheme (Produce Marketing loans)

Loans up to Rs. 5 Lakhs

Loans above Rs. 5 Lakhs up to Rs. 10 Lakhs

Loans above Rs. 10 Lakhs up to Rs. 25 Lakhs

Bank Reconciliation = 10.25% Per annum Bank Reconciliation + 0.50 = 10.75% Per annum Bank Reconciliation + 1.50 = 11.75% Per annum

Self Help Groups (cash credit) Both farm and non-farm sector

Bank Reconciliation + 3.25% = 13.50% Per annum

Not applicable

Application Procedure

To apply for the AB Kisan Sampathi Scheme, the farmer applicant has to follow the below procedure:

Step 1: The applicant will have to approach the nearest Andhra Bank branch to apply for the scheme.

Step 2: The applicant must fill out the Kisan Sampathi 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. Then, the applicant will be provided with an acknowledgement slip for further reference.