Circulars/Notifications - Agricultural Credit & Microfinance Department  

 AC&MFD Circular No. 05 0f 2014
September 30, 2014 

President/Chief Executives of All Banks
(As per list attached)

Dear Sir/Madam,

Guidelines for Value Chain Contract Farmer Financing

With a view to improve small farmers’ access to finance to achieve the broader goal of financial inclusion, SBP, in consultation with stakeholders, has developed Guidelines on Value Chain Contract Farmer Financing.

2. Value Chain Contract Farmer Financing is an internationally recognized best practice in agriculture financing that is being increasingly adopted by banks. It provides a step away from the traditional collateral based lending, which is difficult to obtain particularly in the case of small farmers. The concept is woven around key value chain players including farmers, input suppliers, processors, traders and the financing bank. The Guidelines provide detailed instructions on securing a mutually benefitting tripartite agreement among the participants.

3. Banks are advised to use the guidelines for developing their own products for providing credit to contract farmers according to bank’s credit policy, operational and marketing requirements and compliance with SBP’s regulations.

Please acknowledge receipt.

Encl: As above

Yours faithfully,

(Dr. Saeed Ahmed)


About SBP
Economic Data
Press Releases
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Contact us
What's New?
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Rupey ko Pehchano
Zahid Husain Memorial Lecture
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.