Small farmers, despite representing a major chunk of overall farming households, have very little access to formal credit. The credit which is available to these small farmers, mainly from informal sources, is of very high cost, which escalates their cost of production. As a result, these small farmers have to bear the financial burden which traps them in perpetual cycle of poverty due to low margins and limited income.

The Government of Punjab (GoPb) has taken an initiative to promote the wellbeing of these small farmers through provision of interest free and easy access to financing in Punjab. The objective of the Interest Free Agri. E-Credit Scheme is to reduce the cost of production for these marginalized farmers and to increase the outreach of formal and digital financial services to meet the agenda of financial inclusion. NRSP has been selected as one of Participating Financial Institutions (PFIs) to implement the scheme with small holding farmers having landholding up to 2.5 acres of land and tenants / sharecroppers of up to 5 acres in selected districts of Punjab.

Criteria

  • The scheme is for entire Punjab, NRSP will provide loans to 150,000 farmers in selected districts of Punjab.
  • Farmers having land holding of up to 2.5 acres are eligible for loans.
  • Tenants and sharecroppers of up to 5 acres are also eligible for loans.
  • All six monthly crops are covered under this scheme.
  • Farmers must be registered in Land Records Management & Information System (LRMIS), maintained at Arazi Record Center.

Loan size

The borrower will be entitled not more than PKR 25,000 per acre for Rabi crops and not more than PKR 40,000 per acre for Kharif crop. The actual loan size for each borrower will be determined based on his ability to produce, seriousness and repayment capacity.

Other terms & conditions for borrowers

  • A household will not be eligible for more than one loan at a time.
  • Defaulters of any Financial Institution are not eligible for loan under this scheme.
  • The applicant farmer/Tenant/share cropper should be the resident of same rural Union Council where the land is located.
  • Land of the farmer must be verifiable with the Land Record.