CM Punjab Kissan Card
Soft loans will be approved for small farmers of Punjab. This would be unsecured facility being extended to increase the crop productivity in the province. Under the agreement, small farmers are to be issued with cards with certain pre-defined limits for their working capital needs. With rising cost of Agriculture based inputs limited or no access of credit to small farmers this is a great step being taken by the government.
Program Key features for Cycle 1:
| Sponsor |
Agriculture Department, Government of Punjab |
| Program size |
500,000 farmers to be issued Kissan Credit Card |
| Max Program Financing |
PKR 75bn |
| Targeted crop |
Pilot for October sowing season |
| Loan Type |
Unsecured Clean Facility |
| Targeted Input |
Fertilizers & Seed as defined in the cabinet approval for the initiative. Also eligible items to be kept as per SBP Indicative Credit Limits and Eligible Items for Agriculture Financing |
| Farmer Categorization |
Upto 12.5 acres –Subsistence Farmers only |
| Land Cap |
Maximum 5 acres |
Financing Limit |
| Minimum Limit |
Maximum Limit |
| • The Min Financing amount is PKR 30,000 only (based on min 1-acre land) |
• The Max Financing amount is PKR 150,000 only (based on max 5 acres land) |
|
| Cost of Credit |
0% to farmers- markup fully subsidized by GoPb |
| Eligibility Criteria |
Land owner registered with PLRA
Subsistence Farmer: Maximum upto 12.5 acres of land, minimum is 1 acre (loan upto max 5 acres of land @ upto Rs 30,000 per acre)
Valid CNIC
PMD validation (mobile number in own name)
Credit history as defined in Risk Acceptance Criteria
|
| Age Requirement |
Age should be minimum 18. There is no maximum age. |
| Financing tenor |
Maximum tenor shall be up to 6 months excluding one month grace period for repayment of loan. |
| Pricing for BOP |
6 months Kibor+3.5% (Net-off Card Issuance Fee) |
| Card Issuance Fee |
@PKR 1000 per acre to be recovered from borrowers |
| Loss Guarantee |
30% First Credit Loss Guarantee |