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:: Zarai Taraqiati Bank Limited::

ZTBL Financing to Service Provider(SP)/ Crop Production Companies (CPCs)

Urdu Version

In order to enhance farmer’s productivity and income through the application of best agri. practices and reducing farmer’s cost, a model of financing to Service Provider/Crop Production Companies (CPCs) having technical expertise and adequate management resources has been evolved/conceived which is expected to bring about a great change in agriculture scene of the country. With this objective ZTBL will facilitate the farming community through financing to Service Provider (SP)/Crop Production Companies (CPCs) or groups of growers/producers/farmers registered with SP/CPCs.

Operational Jurisdiction The scheme has been launched as pilot project in selected Branches of the Bank.
Eligibility Service Provider (SP)/Crop Production Companies having good balance sheet and must be in operation for the last five years and who meet the conditions of SBP Prudential Regulations for Agriculture.
Utilization 100% utilization in all loan cases would be carried out by concerned MCO, concerned Branch Manager, Zonal Manager (Recovery) and Internal Auditors of the Bank. During his periodical inspection, the concerned Zonal Chief will also check the utilization of the loan. In case of mis-utilization of the loan the same be recalled in lumpsum as per Bank Policy.
Maximum Loan Limit Upto the tune of Rs. 25 million.

The loan will properly be secured against following securities:-

1- Registered mortgage of property/ land and other tangible securities acceptable to the Bank.
2- Post dated cheques from concerned Service Provider/Crop Production Company (CPC) for repayment of loan/loan installments.
3- In addition to personal guarantee(s)/securities acceptable to the Bank/Bank guarantee.

Continuous Guarantee of Service Provider/Crop Production Companies & Personal Guarantees of all Directors of the Company against un-encumbered property with an undertaking of property holder/Director of Service Provider/Crop Production Company that this property will stay un-encumbered during the tenure of guarantee.
Borrower’s Contribution Debt equity ratio under the scheme would be 80:20 (20% from the borrower & 80% from the Bank).
Cost of Credit As per standing instructions of the Bank.
Repayment Schedule

A. Production Loan:

1- i) The loan to be advanced for Rabi Crops (to be disbursed from 1st October to 31st December) would be recoverable on 15th June & (to be disbursed from 1st January to 31st March) would be recoverable on 15th September and for Kharif Crops (to be disbursed from 1st April to 30th June) would be recovered on 15th December & (to be disbursed from 1st July to 30th September) would be recoverable on 15th March with one month grace period.
2- ii) Since maturity period of Sugarcane Crop is more than one year, therefore loan advanced for sugarcane crop (Aug-April) would be repayable in two installments on 15th January and 15th April as per standing instructions of the Bank with grace period of one month.
3- iii) The loan to be advanced for working capital of dairy/livestock would be recovered in two half yearly installments on 15th January and 15th July.
4- iv) The loan to be advanced for all services relating to agri. activities would be recoverable in six months after disbursement in lump sum on 15th January or 15th July as the case may be.

B. Development Loan: The loan to be advanced for development purposes would be recoverable within five years in half yearly installments after six months of its disbursement on 15th January & 15th July.

Rate of Mark Up As per prevailing rate of Mark-up for development loans.
Monitoring Close monitoring would be carried out on monthly basis by respective Branch Manager, Zonal Chief and Credit Operations Department. Internal Auditors of the Bank would also closely watch its progress and effective implementation.

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Loan FAQs ( Urdu PDF 599KB )