Financial Support of Small Farmers
1 / 19

Rural Finance in Pakistan - PowerPoint PPT Presentation

  • Uploaded on

This presentation is about Financial Support of small farmers in Pakistan to reduce poverty nad ensure food security under National Program of Food Security & Productivity Enhancement of Small farmers (Crop Maximization Project-II) Agriculture Department, Government of Pakistan.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Rural Finance in Pakistan' - guest14453

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Slide3 l.jpg

Competitive Features

  • Credit needs of the farmers at their doorsteps.

  • Efficient, fastest and cheaper lending procedure.

  • Simplified documentation.

  • Timely disbursement.

  • Transparent services.

  • Focus on small farmers.

  • Lowest Mark Up

  • Provision of Timely Inputs

  • Packaging credit with technology and appropriate marketing of inputs and outputs.

  • Mobile Banking

Slide4 l.jpg

Defining Target Clientele

Small Farmers:

  • Having land less than 20 Acres.

  • Actually cultivating land i.e owners/tenants

  • Socially excluded

  • Geographically disenfranchised

  • Away from socio-economic centers

  • Live in calamity - prone areas.

Slide7 l.jpg

Financing Policy & Procedure

  • Who Can Borrow?

    Only members of registered VO can borrow.

  • Documents Required?

    • Loan Application Form

    • Guarantee of Two Members

    • Post dated Cheque of any commercial bank.

    • Affidavit stating timely recovery of loans.

    • CNIC copy and photograph.


  • Slide8 l.jpg

    Financing Policy & Procedure …..

    • Procedure:

      • Loan applications are submitted to VO secretary.

      • Credit committees make technical and social assessment of loanees.

      • VO Secretary calls a meeting of executive body, in which loans are approved in the Presence of Credit Officer and Agriculture Officer concerned.

      • Purchases of inputs demanded in loan applications is made from the market at the lowest price ensuring collective marketing benefit.

      • VO also secures a pro-note and resolution from executive members before the issuance of check.

    Slide9 l.jpg

    Financing Policy & Procedure …..

    • Service Charges

      10 % per annum

    • Credit Limit:

      • For Kharif Crops: Rs. 8000/ Acre

      • For Rabi Crops: Rs: 6000/Acre

    • Loan Time Period

      • For Production Loans Maximum 6 Months

      • For Small Business: Maximum 2 Years

    Slide10 l.jpg







    Security Requirements

    • Two Guarantors

    • Jointly Group Liability

    • Post dated Cheque

    • Having immovable property barred with Revenue Department.

    • Affidavit from each member.

    Slide11 l.jpg

    Measures for Recovery

    • Proper Follow Up

    • Periodical Loan Recall

    • Discount in service charges for Early Recovery

    • Acceleration of repayment from guarantor

    • Legal proceedings under cooperative Act.

    • Help from Revenue Department.

    Slide12 l.jpg

    Establishment of Revolving Fund

    • Targets

    • Achievements

    • Establishment of Revolving Fund ( 2 – 4 million) in each project village, for production loans.

    • Funds for Small Business/IDIs @ 10 IDI’s per Village.

    • Matching grant against VO savings for establishing SFBC.

    • 80% grant for purchase of implements at village level.

    • 18 VOs have partially received revolving fund amounting Rs. 14.33 Million

    • Only two VO’s have got partial grant for the establishment of implements.

    Slide13 l.jpg

    Progress Review of Financing

    Revolving Fund

    Special Saving

    • Production loans amounting Rs. 9,689,038/- has been disbursed for Rabi 2010-11 benefiting 373 members of 15 VOs.

    • 100 % recovery was made on production loans for Kharif 2010 of Rs. 8,550,702/-.

    • A profit of Rs. 348,000/- was earned as services charges on loan issued for Kharif crop.

    • An amount of Rs. 240,000/- has been collected as share money from 2390 members of 55 VOs.

    • Eight VOs have invested their share money amounting in Small Farmer Business Center.

    Slide14 l.jpg

    Outreach (Rabi 2010-11)

    • Total loan disbursed: Rs. 9,689,038/-

    • Total members Benefited: 373

    • Total VOs covered: 15

    • Total area for which loan issued: 1900 Acres

    • Recovery Date: 15 May 2011

    • Amount Recovered: Rs. 98050/-

    • Inputs Provided:

      • DAP 1427 Bags Urea: 4988 Bags

      • SSP 80 Bags Potash: 22 Bags

      • Diesel: 3808 Liter Weedicides: 38 Liter

    Slide15 l.jpg

    Record Keeping

    • All VOs are liable to maintain record as per cooperative Act 1925 that includes Cash Book, Ledger Book, Minutes of Meeting Register, Membership Register, Stock Register, Bank receipts etc.

    • VO office bearers have been provided trainings for record keeping.

    • All necessary guidance is provided to VO office bearers to maintain record properly

    Slide16 l.jpg

    Extra Credit Services

    • Our Service is Beyond Savings and Loan.

    • Develop First Then Follow By Loan.

    • Assist farmers facing occupational problems

    • Re-lending to members

    • How to reduce cost of production, Living expenses, Farming tools & techniques.

    • How to improve farming productivity etc.

    • Farmers’ Coaching and Training

    Slide17 l.jpg

    Lessons Learnt from Experience

    • Issuance of loans on need basis only.

    • Linkages with Stakeholders

    • Close Liaison with Farming Community

    • Guidance to the Farmers/ Borrowers

    • Training & Awareness

    • Rural Deposit Mobilization and Fund Based Services

    Slide18 l.jpg

    State of Affairs

    • Funds are not provided as promised to the farmers which creates anarchy among them.

    • Per acre credit limit needs to be enhanced keeping in view the input prices.

    • Diesel may also be treated as input and loans may be issued for purchase of diesel also.

    • Sugarcane is the major crop of most project villages so loans for sugarcane crop may also be initiated.

    • As per agreement NBP has not yet calculated any profit on the amounts deposited into VO accounts despite of several written communications.

    Slide19 l.jpg

    Thank you

    M. Irfan Arshad Cell No: +92(300) 6732379, Credit & VO Help Officer, Rahim Yar Khan