Interest-Free-Agriculture-Loan-In-Pakistan

Agriculture Loan In Pakistan (15-50Lakh) [PM Youth Program]

The Government of Pakistan has introduced the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS) ranging from Rs. 1.500 million to 5.000 million.

Designed specifically for rural youth aged between 21-45 years, this scheme aims to address their term loan and working capital financing needs within the agriculture sector with a low mark-up rate subsidized by the Government of Pakistan.

The scheme has a primary objective of fostering job creation in rural communities and offers a range of loan limits, an online application portal, and unique features ensuring accessibility and ease for the target demographic.

The scheme unfolds as a comprehensive opportunity for rural youth. As the CLSD oversees the loan sanctioning process, the repayment schedules are strategically tailored, reflecting a balanced approach toward financial sustainability.

The collaborative monitoring mechanism involving various stakeholders ensures transparency and accountability, making PMYB & ALS a pivotal step towards empowering and uplifting the rural youth of Pakistan.

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Agriculture Loan In Pakistan (15-50Lakh) [PM Youth Program]

Interest-Free-Agriculture-Loan-In-Pakistan
Interest-Free-Agriculture-Loan-In-Pakistan

Table of Contents

Eligibility Criteria For Agriculture Loan In Pakistan

Eligibility-Criteria-For-Agriculture-Loan-In-Pakistan
Eligibility-Criteria-For-Agriculture-Loan-In-Pakistan

  • Citizenship: Open to all citizens of Pakistan.
  • Age Range: Applicants must fall within the age bracket of 21 to 45 years.
  • Entrepreneurial Engagement: Individuals involved in entrepreneurial activities or engaged in agricultural/cottage activities are eligible.
  • Loan Limit: Customers are allowed to avail themselves of two loans – one short-term and one long-term within their Micro Credit Line (MCL).
  • Government Employment: Government employees are not eligible to apply for financing under this scheme.
  • Previous Default Status: Individuals who are defaulters of ZTBL or any other Financial Institution are not eligible for financing under this scheme.
  • Enhancement of Loan Limit: Only regular genuine borrowers are entitled to the facility of enhancing the Agriculture Loan limit.
  • Documentation: A valid copy of a Computerized National Identity Card (CNIC) is a mandatory requirement.
  • Credit History: Applicants must provide a clear electronic Credit Information Bureau (e-CIB) report from the State Bank of Pakistan (SBP).
  • Risk Rating: Applicants with an Obligors Risk Rating (ORR) up to 4 are eligible for consideration under this financing scheme.

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Required Documents For Agriculture Loan In Pakistan

Loan Application Submission: Applicants must submit their loan applications through the PM Youth Online Portal.

Application Mechanism: The Prime Minister’s House serves as the overseeing agency, and the National Information Technology Board (NITB) has collaboratively developed an online portal in conjunction with NADRA for the submission of applications under the scheme of Agriculture Loan In Pakistan.

Application Tier and Submission: Borrowers are required to apply through Tier-3 on the PM Portal. Following submission, the application will be allocated to the relevant bank for further processing.

Guidance and Application Assistance: Field functionaries are designated to guide individuals about the scheme and assist in completing the application forms on the online portal.

Agricultural Documentation: Applicants must provide essential agricultural documents, including an Agri. Passbook, Fard Jamamadi, or Alienability Certificate.

Photographic Evidence: Two recent photographs of the applicant are mandatory for the application process under the scheme of Agriculture Loan In Pakistan.

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Maximum Loan Limit For Agriculture Loans in Pakistan

Production Loans

Borrowers can access a per-borrower/party loan limit ranging from Rs. 1.500 million to Rs. 2.500 million under the Production Loans.

Development Loans

The per borrower/party loan limit for Development Loans within the scheme for agriculture loans is set between Rs. 1.500 million to Rs. 5.000 million.

Borrower’s Contribution For Agriculture Loan In Pakistan

Financial Participation:

Borrowers are required to contribute 20% of the total loan amount either through a deposit or investment for Agriculture Loan In Pakistan Project.

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Collateral For Agriculture Loan In Pakistan

Secured Loan: The loan will be secured against various types of tangible properties or securities deemed acceptable by the Bank.

Alternative Collateral for Rural Youth: In instances where collateral is not available with rural youth, the property belonging to their parents or family members can be accepted as security. These individuals will be included as co-applicants for this purpose.

Cost of Credit For Agriculture Loan In Pakistan

Loan Application Fee

A Loan Application Fee of Rs.100/- will be charged, encompassing NADRA online verification charges.

Rate of Mark-up

Borrowers are responsible for paying a 7% markup on the loans. The remaining portion of the markup will be covered by the Government of Pakistan.

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Sanction of Loan For Agriculture Loan In Pakistan

Approval Authority

The Central Loan Sanctioning Department (CLSD) at the Head Office is the designated authority for sanctioning loans.

Maximum Sanction Limit

Loans up to Rs. 5.000 million will be sanctioned by the CLSD.

Repayment Schedule For Agriculture Loan In Pakistan

Repayment-Schedule-For-Agriculture-Loan-In-Pakistan
Repayment-Schedule-For-Agriculture-Loan-In-Pakistan

Working Capital Loans

The repayment period for working capital loans is set at 5 years. During the initial 2 years, only the markup will be payable. Subsequently, for the next 3 years, both principal and markup will be paid, completing the total repayment period of 5 years.

Development Loans

Development loans will be repaid within 8 years through half-yearly installments.

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Monitoring For Agriculture Loan In Pakistan

Collaborative Oversight

The monitoring of the scheme will be conducted through close collaboration among the respective Bank authorities, PM Youth Program (PMYP), State Bank of Pakistan (SBP), and other relevant stakeholders.

Regular Evaluation:

Ongoing assessments will be implemented to ensure effective supervision and compliance with the program’s objectives.

Stakeholder Involvement

Multiple stakeholders, including banking authorities, the PM Youth Program, and the State Bank of Pakistan, will actively participate in the monitoring process to guarantee transparency and accountability.

Contact Detail of Zari Taraqiati Bank Loan (ZTBL)

Official Website: https://ztbl.com.pk/

Address: 1 Faisal Ave, Near Zero Point Interchange, G-7/1, Islamabad Capital Territory, P.O Box 1400.

Telefone: 051 9252805

Email: contactus@ztbl.com.pk

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Frequently Asked Questions (FAQs) – Agriculture Loan

What is the Prime Minister’s Youth Business & Agriculture Loan Scheme (PMYB & ALS)?

PMYB & ALS is a collaborative initiative between the Government of Pakistan and the State Bank of Pakistan aimed at providing term loans and working capital financing to rural youth aged between 21-45 years in the agriculture sector.

What are the loan limits available under the scheme?

Borrowers can access loan limits ranging from Rs. 1.500 million to Rs. 2.500 million for production loans and Rs. 1.500 million to Rs. 5.000 million for development loans.

How many loans can customers avail of within their Micro Credit Line (MCL)?

Customers are allowed to avail themselves of two loans – one short-term and one long-term – within their Micro Credit Line.

Are there any eligibility criteria for enhancing the Agriculture Loan limit?

Only regular genuine borrowers are entitled to the facility of enhancing the Agriculture Loan limit.

What documentation is required for a loan application?

A valid copy of the Computerized National Identity Card (CNIC) is a mandatory requirement, along with a clear electronic Credit Information Bureau (e-CIB) report from the State Bank of Pakistan.

How much is the borrower’s contribution towards the total loan amount?

Borrowers are required to contribute 20% of the total loan amount either through a deposit or investment for the Agriculture Loan project.

What is the Loan Application Fee?

A Loan Application Fee of Rs.100/- will be charged, encompassing NADRA online verification charges.

What is the markup rate for the loans, and how is it distributed between the borrower and the Government of Pakistan?

Borrowers are responsible for paying a 7% markup on the loans, with the remaining portion of the markup covered by the Government of Pakistan.

Who sanctions the loans, and what is the maximum sanction limit?

The Central Loan Sanctioning Department (CLSD) at the Head Office is the designated authority for sanctioning loans, with a maximum sanction limit of Rs. 5.000 million.

What are the repayment periods for different types of loans?

Working capital loans have a repayment period of 5 years, with only markup payable in the initial 2 years. Development loans have an 8-year repayment period through half-yearly installments.

How is the scheme monitored to ensure its effectiveness and transparency?

Close monitoring is conducted through collaboration among respective Bank authorities, the PM Youth Program (PMYP), and the State Bank of Pakistan, ensuring transparency and accountability. Multiple stakeholders actively participate in the monitoring process.

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