Tea Plantation, Processing, Packaging & Marketing

Tea is one of the three major non-alcoholic beverages used in the world, which was originally discovered in China. Currently tea industry has spread from China to the far corners of the world encompassing countries ranging from 30° latitude in the Southern Hemisphere (Kenya) to 45° latitude in the Northern Hemisphere (Georgia). The per capita consumption is more than 1.0 kg. Unfortunately, all tea consumed in Pakistan is imported from abroad. Tea is the third commodity after petroleum and edible oil on which our billions of expenditure has been spent annually. Moreover, in 2020, Pakistan was the leading tea importing country in the world, with imports valued at approximately 590 million U.S. dollars.

Keeping in view all of the above facts, Bank is already providing loans to farmers to enhance the tea production of country. Now, in order to make this initiative more fruitful, loaning facilities can also be provided on similar grounds for tea plantation, processing, packaging and marketing. ZTBL will try to provide linkages to farmers for marketing of their produce either by contact with utility stores or super markets etc or by exploring suitable parties for buying of packaged tea for further marketing.

Terms & Conditions

Operational Jurisdiction

The scheme would be applicable in following branches (i.e. Mansehra, Baffa, Shinkiari, Oghi (Abbottabad Zone) & Mingora, Dir (Mingora Zone) as Pilot Project.

Eligibility Criteria
  1. The creditworthy and reputable rural populace of above areas are eligible to get financing under the scheme. Scheme will be effective in tea growing areas only.
  2. Clear e-CIB Report from SBP
  3. Obligor’s Risk Rating (ORR) upto 4
Items to be Financed

Inputs for Tea plantation (Seeds, fertilizers etc.), Solar Dryer and  Packaging Material etc.

Documents Required

CNIC Copy, Loan application, Agri. Pass Book/Fard Jamabandi & 2 recent photographs

Maximum Loan Limit

Upto Rs. 1.500 million per borrower/party.

Borrower’s Contribution

10% of project cost or the amount over and above the Bank’s maximum per borrower/party exposure of upto Rs. 1.500 million will be invested by the borrower towards the project as equity.

Collateral

The loan would be secured against all types of securities acceptable to the Bank. In case of its non-availability, parents/family member’s security can be accepted as a co-applicant.

Cost of Credit

As per Bank’s Rules.

 

Rate of Mark Up

The prevailing rate of mark up on development loans based on low-cost financing is applicable.

Sanction of Loan

Loan under the scheme upto a maximum limit of Rs. 1.500 million would be sanctioned by CLSD, ZTBL Head Office, Islamabad with maximum Turn Around Time of 3 days.

Disbursement of Loan

After execution of legal documents loan would be disbursed through current account of the borrower in two phases. Sanctioned amount for tea cultivation & store room will be disbursed in first phase and loan sanctioned for solar dryer & packaging cost will be disbursed in 2nd phase after prompt checking of utilization of first loan.

Repayment Schedule

Loan will be recovered within 10 years in annual installments with prescribed return commencing grace period of 4 years without return.

Monitoring

Close monitoring would be carried out by the respective Bank authorities.



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