Agriculture Loan in Pakistan | Prime Minister Youth Business & Agriculture Scheme
Agriculture Loan in Pakistan
The farming industry is necessary not simply to our country’s economy, however also to the resources of millions of rural individuals. We help farmers by offering agriculture loan in Pakistan and also aiding with the procurement of seeds, fertilisers, insecticides, and various other farming inputs. Plants of all ranges are supported, from staples like rice to revenue crops like sugarcane and cotton, in addition to multi-cropping.
Prime Minister’s Youth Business & Agriculture Loan Scheme Apply Online
State Bank of Pakistan has announced the Prime Minister’s Youth Agriculture and Business loan in Pakistan. Loans for business reasons are available to all Pakistani men and women.
A male may take up to two loans, with 25% of loans earmarked for women. Loans can be obtained to establish a new business or to expand an existing one. Also read 5 lakh loan without interest in pakistan
Eligibility Criteria
- All Pakistani citizens with a CNIC who are between the ages of 21 and 45 and have entrepreneurial potential are eligible.
- For IT/E-Commerce-related firms, the minimum age will be 18 years old, with matriculation or comparable education necessary.
- Individuals and single owners are subject to the above-age-limit criterion. Only one of the owners, partners, or directors of any other type of business, including partnerships and corporations, must be in the above-mentioned age group.
- Small and Medium Enterprises (startups and existing firms) held by youngsters in the age ranges listed above are also eligible.
- Farmers will be classified according to SBP’s “Indicative Credit Limits & Eligible Items for Agriculture Financing 2020” in the case of agriculture.
Sectors and Products:
All industries and goods. Furthermore, in the case of agriculture, all crop and non-crop industries are eligible (including agricultural production, cattle, poultry, fishing, dairy, and so on).
Loan Size:
Size of loan is segregated into 3 tiers, as under:
- Tier 1 (T1): Upto Rs 0.5 million
- Tier 2 (T2): Above Rs 0.5 million and upto Rs 1.5 million
- Tier 3 (T3): Above Rs 1.5 million and upto Rs 7.5 million
Tenor:
T1: Up to three years, with equal monthly instalments. In the event of a crop loan, the tenure will be up to one year, and repayment will be in the form of a lump amount on or before maturity, related to the crop cycle.
T2 and T3: Up to 8 years for long-term/development loans, with a maximum grace period of one year.
The tenor for working capital/production loans and murabaha under T2 and T3 will be up to 5 years. Banks will be permitted to issue working capital/production loans in which just the markup is due for the first two years and then both the principle and the markup are due for the next three years, for a total payback term of up to five years.
Bank Rate:
T1: KIBOR+9%, which comprises a wholesale lender margin of KIBOR+1% and an 8% margin for Microfinance Banks (MFBs)/Microfinance Institutions (MFIs).
T2 and T3: KIBOR plus 3%
The mark-up subsidy will be calculated using a six-month KIBOR offer.
Security Requirements:
The following security arrangements will be made:
T1: Clean (secured only by personal guarantee of the borrower).
MFBs/MFIs must also follow the norms and regulations of the SECP/SBP.
T2: Clean (secured only by personal guarantee of the borrower).
T3: In accordance with bank policy.
Vehicles funded under T1, T2, and T3 will be used as collateral.
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