Purpose

Provision of financial facility to farmers for purchase of farm inputs (pesticides only) through authorized Franchisees of M/s Syngenta (Pvt) Ltd. as per terms and conditions agreed upon between M/S Syngenta and The Bank of Punjab through MOU.

Eligibility

• A genuine farmer/self cultivator of his owned or leased land.
• Not a defaulter of any Financial Institution.
• Recommendatory letter from franchisee of Syngenta.

Amount

• Against personal guarantees maximum amount of finance would be RS: 500,000/- according to per acre limit of a crop as admissible under our regular Agriculture Finance Scheme for inputs.
• Against tangible collateral (Agriculture land, Urban property etc.) amount of finance would be determined by the cultivation of the farmer. 

Security

• Hypothecation of crops
• Two personal guarantees (One from M/S Syngenta Franchisee and the other from a notable person of the area)                                       OR
• Charge on Agriculture Land through Agri. Pass Book.        OR
• Registered / Equitable mortgage of urban property assessed by PBA’s approved surveyor and cleared by Bank’s legal counsel.      OR
• Liquid security in the shape Bank’s Fixed Deposited Receipts/DSC/NSC or Regular Income Certificates.                                                     AND
• Two written satisfactory market checking reports

Insurance

• Crop insurance ( Mandatory)
• Life assurance of the borrower (Mandatory)

Mark Up

Average 6 months KIBOR+150 bps with the floor of 8.5 % p.a.

Disbursement

The facility will be disbursed through Kissan Dost Agriculture Finance Account of the borrower as per following procedure:

       I.      After approval of facility in favour of borrower, Bank will complete all pre disbursement documentary formalities.

       II.      The farmer(s) after having approved facility will approach the bank for issuance of delivery order for purchase of products.

       III.      BOP upon availability of funds in the account of the borrower will issue delivery order in favour of the customer (in quadruplicate). Delivery order shall be addressed to Syngenta franchisee and shall contain full particulars of farmers including his CNIC# and signatures/thumb impression. In no way, BOP shall directly disburse the loan amount to farmer for the purchase of pesticides.

       IV.      Original copy along with triplicate and quadruplicate will be handed over to farmer whereas duplicate will be retained by the bank. The bank will verify the CNIC#, signatures/thumb impression of the borrower on the original copy.

       V.      Farmer upon taking delivery of products from the Nayasavera shop will hand over original and triplicate copy to the franchisee at the Nayasavera shop.

        VI.      The franchisee at the Nayasavera shop will submit original receipts with their stamps and signatures confirming that products/commodities have been delivered to the farmer.

       VII.      Bank will make payment to the franchisee within 10 days of submission of the original receipts vide crossed Pay Order/DD payable in the account mentioned against the name of franchisee OR credit to account if maintained with BOP.(maintenance of account with BOP a must)

The branch will receive a written undertaking from the borrower in this regard that approved limit will be utilized for purchase of farm inputs from Syngenta.

Repayment

Our regular KDAF Scheme will guide payment plan.

Renewal

The facility would be renewed upon adjustment of entire principal along mark up amount for which specific request from Syngenta will be required. However, fresh documentation for this facility will be required after three years.