Andhra Bank

• Kisan Credit Card Scheme for Cash and Purchase of Agricultural Inputs
• Kisan Chakra Scheme for Financing Two Wheelers to Farmers
• Kisan Samraksha Scheme for Persons Engaged in Storing and Marketing Of Agriculture Commodity
• Kisan Vivek Scheme for Graduate in Agriculture Allied Subjects
• Kisan Sampathi for providing security to farmers against distress sales soon after crop harvest.
• Kisan Bandhu for Tractor Financing.
• SHG Credit Card Scheme
• Scheme to provide Term finance to small & marginal farmers for purchase of agricultural/fallow/wastelands.
• Scheme for financing dairy agents.
• Andhra Bank Kisan Green Card Scheme to meet agricultural expenses & allied activities.
• Surya Sakthi Scheme for Solar Water Heating System & Solar Cookers

Pattabhi Agricard ( Kisan Credit Card Scheme)

• The kisan credit card is proposed by the Govt. of India and a model scheme is developed by RBI. We have added additional features to make it Truly Farmers' Friendly.
• The card holder can draw cash and purchase agricultural inputs like seeds, fertilizers, pesticides etc. against the card. All the card holders are covered under accidental insurance benefit of Rs.50,000/- with very nominal premium. In addition card holders are having option to get coverage under accidental insurance up to Rs.1.00 lakh under ICD scheme of Bank

Features of Andhra bank Pattabhi Agricard

Eligibility : Individual Farmers who are Owner Cultivators

Validity : The limit is valid for 3 years.

Limit :

• A revolving credit limit will be fixed basing on the credit requirement and the scale of finance.
  
• Additional finance to the extent 10% of eligible scale of finance to meet post harvest/house hold expenses.
  

Interest & other charges :

• As per the rates/rules in force: Interest will be paid at SB rate on the minimum credit balance in the account from 10 th to last day of month.

Operational Features :

• A photo card-cum -pass book will be issued with the card holder's signature/ thumb impression.
  
• The card valid within the district where it is issued.
  
• The Card holder can draw cash as per his requirement from any of our branches in the District.
  
• The literate card holder can purchase agriculture inputs from notified dealers in the mandal to the extent of sub limit sanctioned.
  
• The card holder has to sign the charge slip while purchasing inputs from notified dealers.
  
• Multiple credits and debits into the accounts are permitted.
  
• The card issuing branch will notify the licenced input dealers.

Other Conditions :

• The card should be used by the card holder only.
  
• The card holder should pay all the amounts debited to the account based upon the vouchers of branches and bills of input dealers.
  
• The card holder should collect the original bills and copies of charge slips/vouchers from the input dealers/branches.
  
• Broken/damaged card shall be replaced at nominal charge.

Lost card should be intimated immediately to the issuing branch.

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Salient Features of KISAN CHAKRA Scheme ( Financing two wheelers to farmers)

Eligibility :

• Existing borrowers who are owner cultivators having minimum 2 acres of double cropped area/ 5 acres of single cropped area.
  
• All farmers below the age limit of 55 years.
  
• Women farmers are also be considered.
  
• Loans considered in the name of son/ daughter, if the farmer has become ineligible due to age factor.

Amount of finance :

75% of the cost of the two-wheeler vehicle, inclusive of life tax and insurance, etc. Subject to a maximum amount of Rs.30,000/- will be considered under the scheme for purchase of two wheelers of standard make from authorized dealers.

Rate of interest: As applicable to Agricultural advances at PLR.

Margin: Minimum of 25% of the vehicle cost including insurance and life tax.

Repayment:

10 Half yearly installments linked to the harvesting season along with the production.

Others:

• Vehicle to be hypothecated to the bank.
  
• 'C' Book endorsement incorporating Bank's lien.
  
• Insurance with Bank's clause.
  
• Suitable guarantee of third party.

Eligibility :

Individual farmers for storing Agricultural produce, Entrepreneurs and groups of persons engaged in storing and marketing of Agricultural commodities will be financed under the scheme for establishment of Rural Godowns.

Persons who are engaged in storing of Agricultural produce with an idea of hoarding will not be considered under the scheme.

Loans under tie up arrangements with Food Corporation of India(FCI), State Ware Housing Corporations(SWCs) and reputed corporations with suitable tripartite agreements will also be considered under the scheme.

Location :

Rural areas as per the definition of NABARD are to be included under the scheme provided there is sufficient production and availability of potentiality. The structure shall be located on a well-drained site not liable to flooding or inundations and it shall be away from a place likely to be affected by seepage water.

Capacity :

Godowns with capacity upto a maximum of 10000 MT capacity will be financed under the scheme.

Loan Amount :

2/3 rd of the cost of estimation will be allowed as a loan amount under the scheme. The cost of estimation should not include land cost. If the project is eligible for subsidy, the margin amount can be reduced to 25% of project cost.

For the godowns of different capacities, the maximum permissible loan amounts are indicated below.

Repayment Schedule :

12 to 15 years, including grace period of 12 months. Normally , the construction of godown should be completed within 6 months of disbursement of bank loan. Repayments are to be made in quarterly instalments.

Rate of Interest :

Interest at the rate of PTLR will be charged for loans up to Rs.2.00 lakhs and at PTLR + 1% for loans above Rs.2.00 lakhs. For the loans under tie-up arrangement with CWC/SWC/FCI , interest at PTLR will be charged.

Security :

Primary security of the site and the godowns constructed there on.
Collateral security is to be obtained atleast 100% of loan amount.

Insurance :
The godowns including the stock there in, are to be fully insured against all possible risks.

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Kisan Vivek Scheme for Graduate in Agriculture Allied Subjects

Eligibility:

Agricultural graduates and postgraduates who are below 40 years of age will be considered under the scheme. Group loans will be encouraged under the scheme, provided the persons joining together are agricultural graduates and the group does not exceed 4-5 members.

If beneficiaries are eligible under SGSY scheme, they will be considered under the scheme.

Location:

The units are to be established in the Village / Mandal / Block Headquarters where good potentiality is existing for the services.

Amount of Loan:

Under the scheme a maximum amount of Rs.10.00 lakh will be financed to the individuals. In case of group loans, the amount of loan can go up to Rs.25.00 lakhs.

The following components will be considered for financing

• Purchase of equipment for soil testing / input testing.
  
• Purchase of farm machinery like Tractor /s , power tiller/s, harvest combines, Tractor mounted spraying equipment, etc.
  
• Maintaining demonstration plots.
  
• Purchase of two wheelers.
  
• Purchase of computers, etc.
  
• Repairs to farm equipment.

However, purchase of site / construction of buildings are not financed under the scheme.

Margin: As per existing guidelines of Bank.

Rate of Interest:

For loans upto Rs.2.00 lakhs interest rate at PLR of the bank will be charged . Interest at the rate of PLR + 1% will be charged for loans above 2.00 lakhs upto 10.00 lakhs and at PLR+2% for loans above Rs.10.00 lakhs.

Repayment :

Depending upon the income generating capacity of the unit the loans are to be cleared in 5-7 years, in monthly / quarterly instalments with initial holiday of 3 months.

The unit is expected to generate income from:

• Hiring of equipment.
  
• Fees charged for soil / input testing.
  
• Fees charged for providing extension services.

The center can also enroll members for providing fee based consultancy services.

Security:

• Primary security of all the equipment financed.
  
• Collateral security:

Insurance:

All the machinery and equipment financed will be insured against all the possible risks.

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Kisan Sampathi

Objectives :

The scheme provides security to the farmers against distress sales soon after harvest when the prices of the commodities tend to be low.

Eligibility :

Loans can be sanctioned to all farmers. Both loanee and Non- loanee farmers can be financed. Loanee Farmers who have availed crop production loans from the Bank, which should not be overdue.

Eligible crops to be covered :

• Paddy
  
• Ground nut, Rape seed/Mustard
  
• Bengal Gram (Chana), Arhar/tur
  
• Turmeric
  
• Dry Chillies
  
• Maize
  
• Millets (Jowar/Ragi/Bajra)
  
• Yam
  
• Green gram, Black gram
  
• Jaggery

Loan amount :

75% of the value of the produce at a overnment announced procurement prices subject to a maximum of Rs.5.00 lakh.

Repayment :

Loan shall be repaid within a maximum period of 18 months from the date of disbursement.

Security

• Primary
  • Hypothecation of the produce stored with the cultivator or by the pledge of ware house receipt/cold storage/Rural godown receipt where the produce is stored by him in ware houses/cold storage/rural godown

• Collateral
  • By personal guarantee of two persons for loans upto Rs. 5.00 lakhs, by pledge of ware house receipts of central ware housing corporation / state ware housing corporation / Food corporation of India only.
  • If the produce is stored with the cultivator, 150% collateral security is to be obtained for loans above Rs. 2.00 lakhs. However, loans up to Rs. 2.00 lakhs can be sanctioned with personal guarantee.

Objective : To finance for tractors to improve farm mechanization.

Eligibility :

Farmers having 3 acres of perennially irrigated (owned) or 6 acres of dry land (owned)

Quantum of finance : Up to unit cost of the tractor

Margin : 15% of the unit cost

Repayment : 9 yearly or 18 half yearly installments linked to harvesting season.

Collateral Security

• Up to Rs.3,50,000/- , no collateral security.
  
• Above Rs.5, 00,000/-: Collateral security in the form of mortgage of land/charge creation under state laws

Rate of interest : Up to Rs.5, 00,000 : 9.50%

Our Bank entered into MOU with Eicher, Mahindra and Mahindra, Bajaj Tempo Ltd and TAFE tractor companies, New Holland for financing tractors.

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SHG Credit Card

Objectives

• To supplement the corpus of the SHG for their internal lending purposes.
• To take up micro enterprises / economic activities by the SHG or its members.
• If the economic activity taken up by the SHG/member require higher quantum of financing.
• The same will be considered based on the viability of the proposal. This may include construction
• of common work shed / production center etc.
• Separate limits will be

Eligibility :

SHGs who have availed finance from our bank and have repaid the same within stipulated time, and SHGs who qualify under category 'A' (70-100 marks) and ‘B ‘category (50-70 marks ) as per critical rating index norms. The Card will be issued to those groups which have reached to third/fourth level of finance.

Quantum of finance : A maximum limit of Rs. 2.00 lakh can be availed under the facility.

Validity of the card : The card is valid for the period of 3 years, subject to annual review.

Nature of facility :

The facility is in the form of cash credit. During this period, the SHG can utilize / draw the limit and credit the surplus as per their convenience.

Margin : Nil

Repayment :

As the facility is offered in the form of cash credit, no separate repayment schedule need be fixed while extending the facility.

Security :

• Up to the credit limits of Rs.5,00,000/- :
  No collateral security/third party guarantee
  Assets created out of loan should be hypothecated to Bank.
• Above Rs.5,00,000/-
  Suitable Collateral security by way of mortgage of and/buildings etc., in addition to hypothecation of assets created out of loan.
  

Rate of interest : At present, the interest to be charged is 8.00%.

Additional Benefits to the Card holders

• All the members of SHG will get an additional benefit of coverage of Life insurance.
  
• It is decided to provide Life Insurance coverage to all the members of the SHGs availing credit card facility in association with LIC of India. The detailed guidelines regarding premium and mode of remittances etc., will be informed to you shortly.
  
• Priority will be given to the credit card holders for training through Rural Development Institutes.
  
• Priority will be given for financing housing loans to the members under Rural Housing Scheme.
  
• All the members are covered under Swastya Bima Yojana.

Objectives

• To make the small and marginal holdings economically viable.
• To bring fallow lands and waste lands under cultivation
• To step up agricultural production and productivity
• To finance the share croppers/tenant farmers to purchase land to enable them to increase their income

Purpose :

To provide term finance to small and marginal farmers to purchase agricultural/fallow/ waste land.

Eligibility :

• small and marginal farmers based on pre-development income.
  
• Share croppers/tenant farmers

Margin : 20% of the project cost

Repayment : In 7-10 years in half yearly/yearly installments

Security :

• Mortgage of land purchased out of the Bank loan.
  
• Loans above Rs.30,000/-, co-obligation/third party guarantee is to be obtained

Objectives

• To increase business under Agricultural segment
• To increase milk production through organized sector
• To supplement the incomes of farmers
• To improve rural economy through employment opportunity

Area of operation : Entire state of Andhra Pradesh under tie up with reputed companies

Nature of facility : Agricultural Term loan

Classification : Indirect Finance to Agriculture

Reporting :Under GLB Code 2220

Loan amount

• Minimum of Rs. 1 lack per borrower for every 100 liters of milk procured by him and a maximum of Rs. 2 lakhs for procurement of 200 litres of milk.
  
• The amounts will be released to the agent based on specific recommendation of the company
  

Introduction of Dairy Agent :

• The format on which the company has to recommend the agent is enclosed as Annexure – A.
  
• Interview-cum-appraisal format of the agent is given as Annexure - B.
  
• The agent should be satisfactorily associated with the company for a minimum period of two years.
  
• Should not be a defaulter to any other bank.
  
• Should have adequate collateral security to offer.

Tie up arrangement :

Milk processing units have to execute a tie up agreement to the effect that the proceeds of milk supplied by the Dairy Agent will be routed through the financing branch. A model agreement to be entered into between agent, company and bank is enclosed as Annexure –C.

Repayment period :

• The loan is repayable in 24 monthly instalments after a gestation period of 3 months..
  
• The recovery will be made from the cheques issued by milk processing units.
  
• The account will be reviewed once in a quarter.

Rate of interest : These loans carry the following rates of interest

Security :

• Hypothecation of receivables and assets created
  
• Mortgage of landed/ building property equal to 150% of the loan amount

The Scheme :

The scheme will be referred to as the ‘ Scheme to cover term loans for agriculture & allied activities under Pattabhi Agri Card’ and will be termed as ‘ Andhra Bank Kisan Green Card.’

Objectives :

The scheme aims at providing adequate and timely credit for the comprehensive credit requirements of the farmers under single window with flexible and simplified procedures. The schemes aims to provide the farmers both Short term as well as Medium term loan requirements and a reasonable component of consumption needs.

Loan eligibility :

Individual farmer beneficiary availing PAC facility with our bank having satisfactory track record for a period of three years. Only owner cultivators are eligible for loans.

Nature of financial accommodation :

The credit facility extended under the scheme will be in the nature of term loan for Agriculture/ Allied activity loans and revolving credit for short term loans & consumption credit.

Quantum of limit :

• The limit may be fixed based on value of the landed property owned by the beneficiary. For valuation of the land, our usual guidelines for valuing agricultural lands will be adopted.
• 50% of the valuation so arrived will be fixed as Green Card limit and this will include the limit sanctioned under PAC.
• The minimum card limit is Rs.25, 000 and the maximum Rs.5.00 lakhs.
• The quantum of loan will be fixed based on crop production as well as working capital for agriculture and allied activities. Within the overall credit limit sanctioned, the farmer is free to choose his own purpose like purchase of agricultural implements, land development, purchase of cart & bullocks, dairy animals, sheep etc, repair of farm machinery or any other need including domestic needs like sickness, children’s education and family functions.
• The total limit would have a relationship with the projected net earnings and the repaying capacity of the borrower.

Validity period of the card :

The card limit is valid for a period of one year and can be renewed year after year. No documentation is required for subsequent years except the renewal letter. However, fresh documents are to be obtained at the end of third year. Default in repayment of any of the installments / out standings will render the card holder ineligible for further withdrawals.

Operational procedure :

The farmer should advise the branch manager of the purpose of drawl and the approximate cost thereof less a minimum margin of 15%. Drawls for consumption credit should not exceed 30% of the limit sanctioned. Drawls can be made in installments as and when required. A separate account will be opened for each purpose and a separate repayment programme drawn up in consultation with the farmer.

A farmer whose application is approved will be issued an identity card-cum-pass book with photo and other relevant details. He can take the required amount at different intervals by opening different accounts subject to a maximum of five accounts outstanding at any point of time. There will be no need to separate documentation and other formalities for these different accounts.

Discretionary powers :

The discretion for sanction of Kisan Card facility and sanction of investment credit under the facility is vested with the branches/ controlling offices as per discretionary powers in force for sanction of agricultural loans.

Rate of interest :

As applicable to Agricultural advances. Each facility has to be treated as a separate account and interest charged accordingly.

Registers to be maintained :

A separate register suitably designed for noting down the details of Green Cards issued and loans sanctioned under the scheme will be maintained.

Classification of loans :

Loans given are to be classified according to the purpose for which loans are allowed.

Insurance coverage :

• Coverage under Personal Accident Insurance Scheme (PAIS)
  
• Optional Rs. 1,00,000 accidental insurance coverage available to the Agri card scheme under ICD scheme
  
• Efforts will be made to provide Life Insurance Coverage of Rs. 1.00 lack by working out arrangements with LIC.

Prudential norms :

Prudential norms will be applicable as per RBI stipulations
Impairment of any loan facility is automatically detected
Automatic stoppage of withdrawal under different loan facilities even if one of the loan facility is impaired

Repayment period :

Short term credit / crop loans as well as working capital for agriculture and allied activities would continue to be provided as revolving cash credit, repayable on or before 30th of June every year. The term loan component will be repayable depending on the type of activity/ investment, as per existing guidelines.

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Surya Sakthi

About the scheme :

This is a scheme of Ministry of Non-conventional Energy Sources (MNES) Government of India, New Delhi for promoting use of Solar water heating systems and Solar Cookers in the Country.

This scheme is being implemented as Soft Loan scheme for Solar Water Heaters (SWH) and Solar Cookers (SC) under the Interest Subsidy.

In our Bank, it is named as Surya Sakthi scheme.

Eligible Systems and Suppliers
Under the scheme of MNES, soft loans are provided by our Bank for installation of / purchase of

• Solar Water Heaters based on Flat Plate Collectors(FPC based SWH)
  
• Solar Water Heaters based on Evacuated Tube Collectors(ETC based SWH) &
  
• Solar Cookers

The FPC based SWHs to be financed must utilize BIS (Bureau of Indian Standards) approved Solar collectors. The suppliers of ETC based SWHs are approved by the Ministry. The up to date list of BIS approved manufacturers of FPCs and approved suppliers of ETC based SWHs are enclosed as Annexure-I. Such updated list can also be had from the Web site www.mnes.nic.in of MNES.Systems

supplied by the following are eligible for financing.

• Manufacturers of BIS certified collectors
  
• Business associates/authorized dealers of such manufacturers, on production of a letter from the manufacturers.

It is informed by MNES that a model Regulation/Building Bye-laws for the installation of solar assisted water heating systems in certain categories of buildings has been circulated by the Ministry of Urban Development to all the State and Union Territory Governments with a request to advise their local bodies to incorporate in their existing building bye-laws to make it mandatory for several categories of buildings including residential flats of certain minimum plinth area to have solar water heating system.

Terms and Conditions for sanction of loans to Consumers under SOFT LOAN SCHEME.

Solar Water Heaters

Who can avail finance :

Eligibility :

• Employees of Central/State Government, Public sector undertakings
  
• Salaried employees with confirmed service of 5 years and take home monthly salary of not less than Rs.2000/- after meeting the proposed loan installment.
  
• Professional and self employed persons with Annual net income of Rs.60000/- as evidenced by Income tax return or Chartered Accountants certificate and supported by satisfactory P&C from their BankersIn addition to the above, any individual, Institution non commercial organization or commercial organizations including Hotels, hospital etc., are also eligible for finance.

Note : End users (other than individuals) have to give an undertaking that no depreciation allowance will be claimed under Income Tax rules)

Rate of interest :

Solar Cookers :

Rate of interest :

COST STRUCTURE OF SYSTEMS

Upper limit of cost of solar water heating systems to be financed by Banks ( for calculating loan amount). The cost up to only 5000 liters capacity been shown. Costs of higher capacity systems can be calculated judiciously by the branches based on the number of collectors used.

SOLAR WATER HEATERS BASED ON FLAT PLATE COLLECTORS (FPC BASED SWH)

Notes:
In terms of capacity :
One Collector system = 2 sq.mt. approximately
One Sq.mt = 50 lpd (liters per day)

SOLAR WATER HEATERS BASED ON EVACUATED TUBE COLLECTORS (ETC) BASED (SWH)

Notes:
In terms of capacity :
One Collector system = 2 sq.mt. approximately
One Sq.mt = 50 lpd (liters per day)

Terms of capacity:
One Collector system = 2 sq.mt. approximately
One Sq.mt = 50 lpd (Liters per day)

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