| 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 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.
Valid CNIC Holder.
Clean E-CIB with “NIL” write off history.
Two Positive Market Checks.
|
| Age Requirement |
Age should be between 21- 65 years (Max. 68 years at time of maturity) |
| Target Market |
Individual and Entities engaged in Crop Production
|
| 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
|
| Other acceptable securities including BOP Term Deposit Receipts/ National Savings Scheme instruments such as DSCs/SSCls/RICs or Gold ornaments |
6M K + 3% p.a.
without any floor and cap |
|
| Security Requirement |
As per banks’ policy |
| Processing Fee |
As per SOC |