ZTBL, NBP to give agri loans at reduced rate of 9.9%

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ZTBL, NBP to give agri loans at reduced rate of 9.9%

ISLAMABAD, May 26 (APP): Zarai Taraqiati Bank Limited (ZTBL)
and National Bank of Pakistan (NBP) will launch a new scheme from July 1,
for small farmers with holdings of 12.5 acres, providing them
agricultural loans at a reduced rate of 9.9% per annum.
This was announced by Finance Minister Muhammad Ishaq Dar
during his budget speech at the Parliament House here on Friday.
The minister told that mark-up rates currently charged ranges
between 14% to 15%.
Each farmer availing the new scheme will get a small loan of
up to Rs 50,000.
Two million such loans will be provided by ZTBL, NBP and other
banks. State Bank of Pakistan will monitor the implementation of
this new scheme.
The minister said credit availability for the small farmers is
a major constraint in the use of farm inputs.
In order to facilitate the farmers, the volume of
agriculture credit was being enhanced to Rs 1,001 billion from the
last year’s target of Rs 700 billion which would be an increase of
43%.