Great news, SBP announces online loan scheme without guarantee

The State Bank of Pakistan has introduced a modern, easy and accessible loan scheme called ’Fertilizer-E’ to reduce the financial difficulties of farmers and increase agricultural production. This scheme is specially designed to provide loans to small farmers without guarantee so that they can improve their agricultural activities and contribute to the agricultural development of the country. Scheme Features and Benefits
Under the Fertilizer-E scheme, farmers will be able to get a loan of up to Rs 10 lakh, while this limit has been limited to Rs 5 lakh for farmers. The loan will be given by banks and microfinance institutions for a period of one year, including the principles of Islamic banking to make it easier for each segment. Also read: Important information including launch of e-taxi scheme, application procedure and deadline revealed on easy installments
The most important thing about this scheme is that at least 75% of the loan has been earmarked for direct purchase of agricultural commodities. This includes seeds, fertilizers, agricultural medicines and diesel which farmers will be able to get from authentic and registered traders. The aim is for farmers to use quality and authentic agricultural equipment to increase production and improve quality. The remaining 25% will be given in cash so that farmers can also meet their other needs. Quantity of loan and disbursement of cash
 There will be a loan of Rs 1 lakh per acre of land, but there will be a maximum limit of Rs 10 lakh. They will be given 25 per cent of the loan amount in cash.They have been capped at Rs 5 lakh and they will be given 15 per cent of the amount in cash. Application process and online facility
Farmers do not need to go around the banks to apply for the Fertilizer-E Scheme. They will be able to easily submit their application through the online portal. The application must be accompanied by a processing fee of INR 1,200. The application will then be sent to the selected bank after verification of NADRA, Pakistan Meteorological Department (PMD) and land records. Eligibility Criteria and Regional Limits
For this loan scheme, farmers from Punjab and Khyber Pakhtunkhwa have been declared eligible to own up to 12.5 acres of land, farmers from Sindh up to 16 acres and farmers from Balochistan up to 32 acres. The applicant must be a Pakistani citizen, be between 21 and 60 years of age, have a valid NADRA ID card and have a registered mobile number in his/her name. Government Risk-Curing Framework and Subsidies
The Government of Pakistan has formulated this scheme under its Risk Covering Framework so that farmers in small and backward areas can also get financial assistance easily. 10% First Loss Covering is provided for new users to provide a certain level of protection in case of damage. In addition, a subsidy of Rs 10,000 will also be given to each farmer to meet operational expenses. Read more:Easy business finance scheme, how much loan can be availed? Get details
The Fertiliser-E scheme is a great opportunity for farmers to get financial support without any complications and continue their agricultural activities in an innovative and effective manner. This scheme will not only improve the livelihood of the farmers but also substantially increase the agricultural production of the country, which is welcome for the overall economy of Pakistan.