The Presidents / Chief Executive Officers
Sirs / Madam,
Scheme For Small Farmers
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.
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.