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Establishment of high efficiency Irrigation System

Financing For “Establishment of high-efficiency Irrigation System”

1)Operational Jurisdiction The scheme would be applicable across the country. However, financing may be provided on a priority basis to farmers living in underserved areas.
2)Eligibility Criteria i).       The creditworthy and reputable rural populace all over the country, having the capacity to repay are eligible to get financing under the said scheme. However, old borrowers having good repayment behavior and familiarity with the above activity would also be considered for such loans.

ii).      Not a defaulter of ZTBL or any other Bank.

iii).    Clear e-CIB Report

iv).     Obligors Risk Rating (ORR) up to 4

v).      The progressive borrower should possess technical know-how of Solar Energy Pumps, Drip Irrigation systems so as to enable them to establish and run the unit in a commercially viable manner.

vi).     Quotation/estimate for installation of Solar Tube well, Drip Irrigation System from the firm/entity to be verified by respective Branch Manager, duly accepted by the prospective borrower would be required.


   Loan Limit

The maximum loan limit under the scheme would be up to Rs. 5.000 million per borrower/party.
4)Borrower Contribution The amount over & above the Bank’s maximum per borrower/party exposure of Rs. 5.000 million will be invested by the borrower in the project as equity, or 10% of the project cost if the project cost is less than Rs. 5.000 million.
5)Collateral The loan would be secured against tangible securities acceptable to the Bank.
6)Cost of Credit As per Bank’s Rules.
7)Rate of Mark Up Prevailing Bank’s markup rate on development loans would be applicable for the scheme. However, a 3% rebate would be allowed on timely repayment.
8) Items to be financed Solar Tube well, Drip Irrigation System, Small Water Reservoir/Mini dam
9)Sanction of Loan Loans under the scheme would be sanctioned by Central Loan Sanctioning Department (CLSD) up to Rs. 2.500 million and over & above by the respective Head Office Credit Committee.
12)Insurance Insurance of assets to be created out of a Bank loan will be arranged by the borrower.
13)Monitoring Close monitoring would be carried out on monthly basis by the respective Zonal Chief and Credit Operations Department, ZTBL Head Office Islamabad for which they would develop formats for the production of required data by the Information System Division, ZTBL Head Office Islamabad.