Group members

Shahid Nawaz Arooj Abdullah Sobia Manzoor Hina Rana

Agriculture credit
Definition:
A credit financing vehicle, such as a loan, bankers acceptance or letter of credit, that is designed specifically for agriculture producers , typically, this financing is used to fund operations, purchase equipment or acquire real estate.

Types of agriculture credit

Short term loans
e.g. to purchase the seeds, pesticides, fertilizers etc.

Medium term loans

e.g., cattle's, constructions of water ways, fences and dairy farms etc.

Long term loans

e.g., improvement of land, installation of tube wells, tractors and heavy agricultural machinery etc.

Sources of agriculture credit

Institutional sources

Zari Tarkiati Bank Limited Commercial banks Cooperatives banks Domestic private banks

Source agriculture credit

Non institutional sources

Friends Neighbors Professional money lenders

Why agriculture credit is necessary?

Purchase of input
Payment of land rent and water rate Purchase of technology Construction purposes Payment of inherited debt

Why agriculture credit is necessary?

Natural calamities
Increase the value of land Purchase of new land Limited scale of cottage industries Defective marketing system

Problems of agriculture credit

Small farmers ignored

Uneconomic holdings Complications of advancing loans Low productive of land

Problems of agriculture credit

Delay in disbursement
High interest rate Limitation of securities Bad debts Ignorance and illiteracy

Solutions of the problem

1. 2. 3. 4. 5.

Zarai taraqiate bank limited(ZTBL)

Cooperative credit Commercial banks Taccavi loans Role of state bank in agriculture credit

6.

Establishment of bank branches in rural areas

Role of ZTBL

Development loans
Production loans

Agriculture business loans

Revolving finance scheme/ sada bahar scheme

Role of ZTBL

Loan under one window operation

Micro credit scheme Crop maximization project

ZTBL agriculture credit limits

Maximum Credit Limit Per Borrower/Party Rs.1.000 Million

Zarkhaiz Scheme (One Window Operations) Rs.0.200 Million

Sada Bahar Scheme/ Awami Zarai Scheme Rs.0.500 Million

ZTBL agriculture credit

PER ACRE CREDIT LIMITS
Major Crops: Wheat 16,000 Rice 19,000 Sugarcane 30,000 Cotton 21,000 Maize 20,000

Requirement to get the agriculture credit

Applicant must be a genuine

farmer/tenant.

The borrower should be holder of computerized N.I.C in cases of individuals.

Requirement to get the agriculture credit

The borrower should not be a defaulter of any Bank/Financial Institution. Applicant must produce proper securities / sureties / passbook or other collaterals acceptable to the banks

CONCLUSION
the credit not only solve the problems of food crisis but also increase the economic growth, saving, employment, and industries etc in the country. So short term and long term loans problems solutions is required for the improvement of the farmer.

Question & Answer Session