Energy is the vital force powering business, manufacturing and the transportation of goods and services to serve world economies. In view of the shrinking energy sources and to keep the momentum of economic growth, Biogas amongst other sources can be one of the best and cheapest alternatives. Being an agrarian country, Pakistan is having abundant ingredients for biogas The use of this energy source can not only help in catering increasing energy requirements but can also reduce the environmental threats. Rotting food waste, animal and human sewage is converted into gas by anaerobic conversion in a digester and process results in the production of Marsh gas (Methane) which burns more cleanly and produces more energy with less emissions of carbon dioxide.

Keeping in view the business prospects and to help village community in meeting their domestic energy requirements at cheaper rates, our Management has decided to introduce a new product for purchase and installation of Biogas Plant under Kissan Dost Lease Finance Facility for Installation of Biogas Plant on following terms & conditions:-

PURPOSE

The purpose of this scheme is to provide lease finance facility for purchase & Installation of Biogas Plant.

ELIGIBILITY

• Applicant should be a Resident of the town/village where plant is to be installed
• Not a defaulter of any Financial Institution
• Having good market reputation

NATURE & TENURE OF FACILITY

• Medium Term Lease Finance Facility (L/F) for a Maximum period of Three (03) Years.

AMOUNT OF FINANCE (For Purchase & Installation of Biogas Plant)

• Maximum 80% of the purchase price of the plant (as per quotation)

EQUITY

• Minimum 20% of the purchase price of the plant (to be contributed by the applicant)

TYPE OF SECURITY

PRIMARY

• Leased Assets (Plant with Fittings) (Original Receipts will be issued in the name of the Bank of Punjab)

COLLATERAL

• Charge on Agriculture Land through Agri. Passbook. OR
• Registered/Equitable Mortgage on urban immovable property. The property should be cleared by the banks approved legal counsel and will be assessed by the Banks and PBAs approved surveyor. OR
• Liquid security in shape of Bank’s Fixed Deposit Receipt/DSC/NSC or Regular Income Certificates.
• One personal guarantee of a reputable person acceptable to Bank.
• Two written satisfactory market checking reports

MARGIN ON SECURITY

• 25% Margin on Oast Bai Value (duly verified by Revenue Officer) of Agri Land
• 50% Margin on Forced Sale Value of the property as evaluated by PBA/Bank’s approved surveyor.

INSURANCE

• Comprehensive Insurance (assigned to BOP) of the Leased Assets at borrower’s cost.
• Life assurance of the borrower (assigned to BOP)

MARK UP RATE

• 15% per annum (to be recovered along with monthly installments)

DISBURSEMENT

Disbursement of Lease Finance Facility will be made direct to the vendor/supplier of plant through crossed PO/DD by debiting finance account & equity being deposited by the borrower.

REPAYMENT