The Presidents / Chief Executive Officers
All Banks

Dear Sirs / Madam,

 

Financing Scheme For Small Farmers

In order to improve the access to finance to the small farmers involved in crop and non-crop activities who are unable to provide adequate collaterals according to the requirements of banks, SBP has designed a financing scheme for them on the group based lending methodology. Under the scheme, banks shall provide loans to the members of small farmers’ groups for crop and non-crop activities, based on their cash flow under joint cross guarantee of group members.

The scheme covers all areas of the group based financing methodology including group formation, roles & responsibilities of members, bank & group coordinator, size and tenure of loans, documentation and other related matters. Financing to small farmers under the scheme shall be subject to compliance with SBP regulations on agriculture financing. Copy of the scheme is attached.

Please acknowledge receipt.