APNA Microfinance Bank

PPG – AGRICULTURE LOAN

Product Features: APNA Agriculture Loan Eligibility Criteria

• Applicant should be residing & doing business in the
Target Audience : Small Farmers and Agri Micro Entrepreneurs (For Agri inputs)
respective Tehsil or 20-KM whichever covers the more
For Individuals: Up to Rs. 150,000/ distance of the Branch vicinity.
For Micro Entrepreneurs: Rs. 150,001/ to Rs. 500,000/- • Applicant should hold a valid CNIC.
Loan Amount :
(Enterprise Loan will be only processed where loan is • Age limit is 65 years at the time of maturity of loan.
secured/collateralized) • Applicant should not be in the negative professions list as
For the purchase of Agri inputs, like fertilizer, pesticide, per AMBL’s Credit Policy.
Purpose of Loan : cultivation, labor, transportation, agriculture farming • Applicant should not be defaulter of any financial institution
machinery/instruments/equipments etc.
For Individual Category: Documentation
Maximum annual income (NDI/Gross Salary of borrower) must
Income of Following documentation will be required from the
: not exceed Rs.500,000/- per annum.
Applicant Applicant:
For Entrepreneur Category:
As per guidelines provided in Prudential Regulations (PRs). • Copy of CNIC.
• 2 Passport Size Photographs.
General Loans Enterprise Loans
• Copies of Latest Utility Bills (Not Older than 3 Months).
(Up to Rs. 150,000/-) (Rs. 150,001/- to Rs. 500,000/-)
• 2 Personal guarantees of well reputed and credit worthy
2% + Rs. 500 (for Punjab & 1.5% + Rs. 500 (for Punjab & persons (in case of un-secured loan).
KPK) & 0.3% of the Financed KPK) & 0.3% of the Financed • Copy of CNIC of both Guarantors (for un-secured loan)
Processing Charges amount (for Sindh) + Tax amount (for Sindh) + Tax • Business Proof/Fard Malkiat/Agri Passbook.
& Insurance Rate • 2-Security Cheques from Applicant.
Life Insurance: Life Insurance:
0.42% of Financed Amount 0.42% of Financed Amount For RF Cases:
Asset Insurance: 2-Advance cheques are required.
o 1 equivalent to the purchase price (Principal +
2% of Financed Amount
Mark-up).
Product Type : Running Finance (RF) o 1 equivalent to the 1-year Mark-up amount.
For TF Cases:
Financing
: 1 Year 2-Advance Cheques are required.
Tenure
o 1 equivalent to the purchase price (Principal +
• Principal adjustment at maturity (with crop cycle) Mark-up).
• Mark up servicing on Half Yearly basis (5th o 1 equivalent to the 6-month EMIs.
May & 5th Nov of each Year) i.e.
• Acknowledgement of cheques will be provided to customers.
Repayment : ✓ Loans disbursed during 1st May to 31st Oct will pay
1st mark up on 5th Nov. Security/Collateral
✓ Loans disbursed during 1st Nov to 30th Apr will pay
1st mark up on 5th May. General Loans:
Renewal will be allowed upon maturity after complete Markup Any of the following security/collateral can be obtained:
Renewal : servicing and review of borrower’s repayment behavior during the
loan tenure. • 2 Personal Guarantees of well reputed and credit worthy
Unsecured: persons.
APR 34.50% • Gold / Lien/Equitable Mortgage on Residential/Commercial
Pricing : Property/Lien on Agri Passbook.
Secured:
APR 26.50%
Enterprise Loans:
General Loans: • Lien/Mortgage on Residential/Commercial property/Agri
• Asset & Life Insurance is mandatory in all cases. Passbook.
• Insurance premium will be recovered upfront. Risk Assessment Criteria
Insurance: :
Enterprise Loans (Lien Based/Secured): Customer Segment:
• Only Life Insurance is mandatory in all cases & will
be recovered upfront. There are three main segments namely:
•a. Low Income Individuals
Product Type : Term Finance (TF)
b. Micro & Small Entrepreneurs
Financing c. Women: To equitably expand economic opportunities
: 12 months, 24months & 36 months
Tenure and to maximize value for all stakeholders
Repayment: : Equal Monthly Installments (EMI)
Residential Ownership Status:
Unsecured:
APR 53.84% The applicant or any of the guarantor must reside in her/his
Pricing : own/family house. In case applicant is living on rented place,
Secured:
APR 42.52% min. tenure of residing must be at least 2-years in same area.
General Loans: Credit History:
• Asset & Life Insurance is mandatory in all cases.
• Insurance premium will be recovered upfront. All applicants to be screened through online ECIB Database with
the following criteria.
Enterprise Loans (Lien Based/Secured):
Insurance : • Only Life Insurance is mandatory in all cases & will • Presently not in 30 DPD in any products
be recovered upfront. • Not more than once in 30 DPD in last 6 months
If loan tenure is more than 1 year, Insurance premium • Not more than twice in 30 DPD in last 12 months
for the remaining period will be amortized in the • Never in 60 DPD in last 12 months
installment repayment plan. • No write off / charge off.
Version: V1
Updated: November 2019
Developed By: Product Development Div.