Interest-free Agriculture E-Credit Scheme “Empowerment of Kissan through Financial & Digital Inclusion� (An initiative by Government of the Punjab) An Overview of Project Progress
Brief Description of Project Project Initiator
Government of the Punjab
Budget
PKR 100 billion
Duration
05 years (2016-17 to 2020-21)
Target group
500,000 small farmers with landholding of up to 12.5 acres
Participating Financial Institutions Akhuwat, NBP,NRSP, Tameer Bank & (PFIs) ZTBL Date of MoU Signing b/w GoPb and Akhuwat
8th December, 2016
Funds allocated to Akhuwat
PKR 2.0 billion
Transfer of funds
30th December,2016
Progress of Akhuwat as of 31st October, 2017
41,976 loans Disbursed
Salient Features • A unique initiative for agriculture lending in Punjab • The scheme is for entire province however Akhuwat has to provide loans in selected districts to: • Farmers having land holding of up to 2.5 acres with preference to the landless • Tenants and sharecroppers are also eligible subject to their tenancy agreement
• Loans are provided for Rabi and Kharif crops (all six months crops are covered under this scheme) • Loans are awarded on social collateral or personal guarantees • Farmers must be registered in Land Records Management & Information System (LRMIS)
Digital Inclusion • • • •
Opening of bank accounts of farmers Cashless disbursement Use of ATM card for cash withdrawal Use of mobile wallet account for cash withdrawal and vendor payments • Inclusion of smart phones for: • • • • • •
Agriculture advisory Weather forecast Knowledge about latest machinery Market information Helpline number Agriculture news
Progress Report as of 31st October, 2017 No. of Districts Outstanding Loan Portfolio
1.4 Billion
23 No. of Branches
86 %age Recovery
100% Total Benefitting Farmers
Active Loans
23,482 Amount Disbursed
2.292 Billion
41,976
No. of Loans Disbursed-Ownership as of 31st October, 2017
31%
13,000
28,796
69%
Tenants
Owners
Significant Achievements • Disbursement through Asaan Accounts: 34,150 Asaan Accounts opened and farmers will receive loans through these accounts for Rabi 2017-18 • Benchmark survey of all farmers completed though it was not required under the agreement • Farmers’ facilitation and capacity building: 20,000 farmer got training on latest techniques and 90% farmers will get training before coming cropping season (It was also not a part of agreement) • All farmers are availing Water & Soil test services (so far 4,320 farmers have conducted these tests) • Laser leveling campaign was launched and this activity will be completed before next crop (so far 6,180 farmers have conducted laser leveling)
Farmers’ Road to Success Start
Land
Seeds & Fertilizers Technology
Trainings about latest tools and techniques
Access of Interest Free Financial Services Crop Increased crop production
Improved Income Farmer is free to sale crop in market
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