ZTBL building
:: Zarai Taraqiati Bank Limited::

ZTBL financing to NAVTTC trained rural youth as service provider

Urdu Version

With the objective to provide credit assistance to National, Vocational & Technical Training Commission (NAVTTC) trained rural youth to make them able to work as service provide for facilitation of agri. related services to the rural populace/farming community, the subject scheme has been launched by ZTBL.

Operational Jurisdiction The scheme is being launched as pilot project in selected ZTBL Branches falling under Lahore, Faisalabad, Multan, Islamabad, Karachi, Hyderabad, Mirpurkhas, Abbottabad, Peshawar, Quetta, Muzaffarabad & Gilgit-Baltistan zones.
Eligibility i. All new as well as old credit worthy farmers are eligible to get financing under the scheme however, preference will be given to those farmers who already have experience in agro & livestock related business/activities.
ii. All rural youth who obtained trainings with regards to agro & livestock services at the approved training institutes/centres of NAVTTC.
iii. The loan would be provided to eligible farmers, in which 30% borrowers/farmers having existing lending relationship with the Bank & 70% fresh farmers, with clean credit history would be considered.
iv. The borrower/farmers must have valid copy of CNIC.
v. Clear e-CIB Report
vi. ORR Rating upto 4
Documents Required CNIC Copy, Loan Case File, Agri. Pass Book/Fard Jamabandi & 2 recent photographs
Maximum Loan Limit Clean financing limit would be upto Rs. 0.100 million whereas for secured financing limit would be upto Rs. 1.500 million per borrower/party.
Collateral Part-I (Loan Against Personal Surety):
NAVTTC trained rural youth would be provided clean financing/surety loan opportunity for the agro-service loan items/facilities subject to fulfillment of following collateral requirement

i) Two Federal/Provincial Government officers (Grade - 16 & above) are eligible to stand surety for one case only up to the limit of three times of their substantive pay.
ii) Surety of a person owning immoveable property, worth two times the amount of loan, can be accepted. Thus a solvent person can stand surety to the extent of 50% of the assessed value of his property either under Pass Book System or Outside Pass Book System.
iii) The surety of a relative can be accepted provided he/she fulfill the criteria as per Bank’s standing instructions.
iv) No guarantee/surety can be accepted from a borrower who is defaulter of ZTBL or any Bank/ financial institution.

Part-II (Loan Against Tangible Collateral/ Security):
Under the scheme NAVTTC trained rural youth will be eligible to avail loan facility in their area of trainings for the agro & livestock services against tangible collateral/security acceptable to the Bank.
Equity Contribution 10 % of loan amount and the same would be invested by the borrower towards his/her project/scheme.
Rate of Markup As per prevailing rate of Mark-up for development loans.
Cost of Credit As per standing instructions of the Bank.
Repayment Schedule Loan would be recoverable in three (03) years in five equal half yearly installments on 15th January & 15th July commencing after six months of 1st disbursement with one month grace period with following provisions:-
i) 100% cash on due date must be recovered.
ii) No roll-over is allowed under the scheme.
iii) Targeted NPLs must not to exceed > 10%.
Utilization MCO will check the utilization of loans within one month of disbursement in 100% cases. Moreover, Manager, Zonal Manager (Recovery) and Bank’s Internal Auditor will also check the utilization of loans as per prescribed share percentage. During his periodical inspection, the concerned Zonal Chief will also check the utilization of the loan. In case of mis-utilization of the loan the same be recalled in lumpsum as per Bank Policy.
Monitoring & Evaluation Close monitoring would be carried out on monthly basis by respective Branch Manager, Zonal Chief and Credit Operations Department, ZTBL Head Office Islamabad. Internal Auditors of the Bank would also closely watch its progress and effective implementation.

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