Shadabi Plan covers the agriculture loan products for the production requirements of farm & non-farm activities of the farming community. Financing products extended under this category are Agriculture Running Finance-Revolving (ARF-R), Agriculture Production Finance (APF) and Agriculture Production Finance Growers (APF-G). A brief description of finances under Shadabi Plan are provided below.

Agriculture Running Finance Revolving:

The objective of the product ARF-R is adequate and timely support from bank to farmers for their cultivation needs including purchase of inputs in a flexible and cost effective manner. The product is structured to facilitate the borrowers for their financial needs of routine nature with one time documentation during the validity of 3 years limit, subject to the defined condition of annual cleanup.

Salient Features:

  • Revolving limit up to 3 years i.e. borrowers shall have the facility of multiple withdrawals and deposit from time to time at their convenience within its validity.
  • Annual cleanup at least once a year with the option of relaxed terms of SBP directive i.e cleanup in two parts by adjusting 50% after harvest of Rabi & Kharif crops OR on turnover basis.
  • Cost effective i.e., saves in markup amount, due to time to time adjustment feature.

Agriculture Production Finance:

APF caters the financing needs for production activities on the farm which mainly include seed, pesticides and fertilizers along with provisions for miscellaneous expenses like payment of electricity & diesel bills and the like items as per list of eligible items.

Salient Features:

  • Farm credit allowed for production purpose for purchase of inputs and working capital requirements.
  • After approval of finance, full limit amount is credited to customer account.
  • Payment of loan to the borrower is made in kind through pay order favoring dealer/supplier of input or in case of cash payment, on production of purchase receipt of input by the borrower.
  • Mark up on limit amount will apply from the day of disbursement irrespective of the amount availed by the farmer.
  • Partial adjustment of limit availed is allowed but once limit is adjusted, partial or full, the same can not be availed again.
  • Once the loan is fully adjusted, fresh approval of finance will be required for further disbursement/availment of facility
  • Repayment of loan in lump sum on expiry of the limit or partially as per farmers choice Mark up will be calculated on daily basis on outstanding principal amount and charged on expiry of the limit

Agriculture Production Finance Growers (APF-G)

Agriculture Production Finance-Growers (APF-G) is generally allowed to Sugar-cane Growers who supply their produce to Sugar Mills. Usually a Sugar Mill manages a relationship with large number of growers/farmers and induces & facilitates these growers to ensure continuous supply of raw material. The purpose of the facility is to meet the input needs for sugar-cane crop of the Growers.

Salient Features:

  • Growers Finance is mainly meant for Sugarcane Growers (farmers/tenants) who supply their produce to Sugar Mills and may not be able to offer adequate security of their own.
  • The Sugar Mills offer Corporate Guarantee for the repayment of loan under Growers Finance Facility
  • Growers Finance can also be considered for other Crops, provided that the same criteria/security/corporate guarantee as applicable in case of sugarcane is fulfilled.
  • The Mills will submit Credit Proposals to the concerned Branch which will appraise Proposals as per procedure.
  • The limit of individual growers will be assessed as per indicative credit limits per acre and approved as per eligibility/requirements recommended by the Mill.

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