Budget 2017-18: Two million small loans on subsidised rates for farmers

Budget 2017-18: Two million small loans on subsidised rates for farmers
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ISLAMABAD: 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%.

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