September 22, 2006	Friday	Sha'aban 28, 1427

NAUSHAHRO FEROZE, Sept 21: The Procedure for sanctioning agriculture loans has been simplified and the number of documents has been reduced to three--namely the application, the form IB-7 and the passbook. Earlier, 14 documents were required for the purpose.

This was stated by head of agriculture finance division of the United Bank Ltd Abdul Qadir Khan at a press conference after a State Bank’s special outreach and training programme here on Thursday.

He said that the bank had arranged this training programme at Naushahro Feroze to create awareness among the growers. He said that a crop loan insurance framework was under process and would be introduced within few months.

Joint Director State Bank of Pakistan Karam Akram Bakhshi said that earlier there were seven commercial banks giving agriculture loans but presently there are 21 banks advancing such loans.

He said in 2001 agriculture loans amounting to Rs30 billion were sanctioned but in 2005-06 the amount increased to Rs130 billion and for 2006-07 the target has been fixed at Rs160 billion.

He said that a group loans scheme will be introduced whereby every person would be the guarantor of his group members and in case of default by a member the other group members will convince the defaulting member to repay his dues.

Mr Bakhshi said that of the total farm loans target, 70 per cent will be given to small growers, 20 per cent to medium and 10 per cent to the big growers.

He said that if the growers having orange, grape fruit, mangoes orchards, set up a juice factory, they will come within the agriculture loan structure.

The joint director said that guidelines for livestock financing will be released soon while a scheme for loans to the fisheries sector will be announced next year.