| Salient Features of Production Loan |
| Purpose |
Financing for working capital requirements include purchase of Farm Inputs such as seeds, fertilizers, pesticides and various farming related expenses as allowed under the per SBP Indicative Credit limits and Eligible Items for Agri Financing. Accordingly, the facilities under this product shall be provided for all crops including major and minor crops, orchards, nurseries etc. |
| Eligibility Criteria |
Minimum land cultivation of 05-Acres either self-owned or jointly with family (Family covers spouse and children only (Minor) parents are not covered in family.
Fard of family to be obtained as a proof of ownership of land
All other i.e. brother, father, mother, sister and third party can either become co-borrower or can provide lease agreement valid for at least 3 years.
In case of leased land Khasra Gardawari in the name of applicant to be taken as a proof of land under cultivation of applicant.
|
| Age Requirement |
Age should be between 21- 65 years (Max. 68 years at time of maturity) |
| Target Market |
Self-cultivator/resident farmers: Owner or Owner and family land and/or Leased Land
Corporate Farms: The target market also include Corporate farms which mean a legal entity separate from its owner(s) and carry out farming activity at a large scale. |
| Loan Size |
| Per party / Per Group/ Related Party |
MINIMUM |
MAXIMUM |
| Individuals |
Rs. 500,000/- |
Rs. 50,000,000/- |
| Corporate farms |
Rs. 1,000,000/- |
Rs. 100,000,000/- |
|
| Loan Tenor |
Upto 3 years |
| Debt to Equity Ratio |
50% |
| Pricing |
| Against Agri Land/ Urban/ Residential & Commercial Land or property |
6M K + 6% p.a.without any floor and cap |
| Corporate Farms |
6M K + 4% p.a.
without any floor and cap
|
|
| Security Requirement |
As per banks’ policy |
| Processing Fee |
As per SOC |