Zarai Taraqiati Bank Limited (ZTBL) launched the Kissan Khushhal Scheme (KKS) on Monday (30 August) which will enable the farmers to get the maximum amount of loan benefits with a minimum mark-up.
The KKS will assist farmers in obtaining timely agricultural financing to address the real demands of the farming community for crop input, as well as convenient credit access with one-time documentation for three years. The salient features of the KKS are as follows:
- It provides multiple operations of withdrawal.
- The farmers can withdraw the money according to their needs hence allowing a repayment facility.
- The farmers can easily repay loans when they have the sufficient finances.
The Head Credit ZTBL Arshad Hassan Awan explained that “It is a marvelous scheme that provides loan and guidance simultaneously to farmers. It means that farmers can withdraw need-based amount out of the total sanctioned loan limit and the mark-up will be charged on the amount withdrawn by the farmer.” The KKS allows the farmers to use the partial amount or use the entire limit as per their needs. In addition, they can pay the labiality in their loan account depending on the cash flow.
The Head Credit Policy Qadeer Javed explained that “In simplest words, it means that if ZTBL sanctions Rs700,000 to the farmer and the farmer withdraws only Rs200,000 from his account, the mark-up will be charged on the utilized amount only and not on the entire sanctioned amount.”
In addition to this, he said that the main driving force behind KKS is that it will allow the farmers to make productive use of the loan as per their needs and issue checks without the exploitation from middlemen.
This is how ZTBL distributes loans while also advising farmers on how to get the most out of their loans with the least amount of mark-up. Furthermore, the strategy offers the considerably more flexible option of repaying the Mark-up in half-yearly installments and the principal amount in one year to decrease the debt burden. To help borrowers avoid default, enhanced system-based restrictions have been implemented.
The KKS will stay valid for up to three years with one-time documentation, however, it is important for the farmer to clear out the outstanding amount once in a year to become eligible for the loan next year.
The scheme’s maximum per-borrower limit will be Rs.0.700 million, with insurance coverage available in the event of natural calamities. The scheme was introduced in line with Prime Minister Imran Khan’s objective of empowering small farmers across Pakistan.
Special Assistant to the Prime Minister Dr. Shahbaz Gill tweeted that Pakistan is changing as per the vision of Prime Minister Imran Khan.
