This document summarizes an interest free agriculture loan scheme launched by the government of Punjab, Pakistan. Key points of the scheme include: - It provides interest free loans of up to Rs. 50,000 to small farmers with land holdings of 2.5 acres or less. - The loan process involves verification, application, selection, appraisal, approval and disbursement steps managed through an online portal. - Loans are disbursed into digital "Asaan Accounts" and funds are transferred to borrowers through smart phones and mobile wallets. - The scheme aims to promote financial inclusion among small farmers through access to formal and digital financial services.

1. Religiosity and threshold effect in social and financial
performance of microfinance institutions
Mohammad Ashraful Mobin

2. Interest Free Agriculture
E-Credit Scheme
BY
Dr. Amjad Saqib
08-11-2016

3. Background of Project
The Government of Punjab (GoPb) has taken
an initiative to promote the wellbeing of small
farmers, having land holding up to 2.5 Acres,
through provision of interest free loans. The
objective of the Interest Free Agriculture E-
Credit Scheme is to increase the outreach of
formal and digital financial services to ensure
financial inclusion.

4. Salient Features
• Available in all districts of Punjab.
• Farmers having land holding of up to 2.5 acres.
• Tenants and sharecroppers are also eligible for Interest Free
Loans.
• The applicant farmer/Tenant/share cropper should be the
resident of same village where the land is located.
• 30% farmers may have existing lending relations with financial
institutions whereas 70 % would be fresh borrowers.
• Service charges of SPO shall be borne by Government of
Punjab.
• Loans will be awarded on social or personal guarantees.

5. Loan Process
for
Agri E-Credit Scheme

6. 1. Program
Introduction
2. LRMS Verification/
Registration
3. Application
submission by
potential borrowers
4.Selection of
farmers on PITB
portal
5.Social Appraisal by
staff
6.Agriculture
Appraisal by staff
7.Guarantors of Loans
(to be provided by
farmers)
8.Finalization of
documents
9. Loan Approved
by Loan Approval
Committee
10.Final Approval
from Agri. Dept.
11.Asaan Account
12.Smart phones
and mobile wallets
13. Social guidance &
paper Disbursement
14.Regular visits of
field
15.Recoevry of
Loan
Loan Process for
Agri. E-Credit
Scheme

7. Funds Flow
for
Agri E-Credit Scheme

9. Public Private Partnership

10. Sr.
NO
Scheme Name Start Date
Funds
Allocated $
Funds Received
$
1
Chief Minister’s Self Employment
Scheme (CMSES-Punjab)
October
2011
100 Million 85.00 Billion
2
Chief Minister’s Self Employment
Scheme- Gilgit Baltistan (CMSES-GB)
April 2013 3.85 Million 3.85 Million
3
Prime Minister’s Interest Free Loan
Scheme (PMIFL)
August
2014
4.46 Million 4.46 Million
4
Governor KP Scheme for Federally
Administrative Tribal Areas (FATA)
Septembe
r 2015
5.00 Million 4.12 Million
5
Technical Educational and Vocational
Training Authority (TEVTA) Interest
Free Loan Scheme
October
2015
5.00 Million 5.00 Million
Public Private Partnerships

11. Salient Features
• First ever interest free loans projects on such scale.
• Loan size ranges from Rs. 10,000 to Rs. 50,000.
• Loans are given for businesses and setting small enterprise
only.
• Graduates of PVTC, TEVTA and technical/vocational institutions
are preferred.
• Loans are disbursed in mosques/church to ensure transparency
and participation.
• There is no mark-up or interest on these loans.
• Loans are disbursed in 450 locations of 60 districts of the
province.

12. Salient Features
• Loans are given after due scrutiny and appraisal according to
an eligibility criterion, on first come first serve basis.
• More than 1,400,000 loans have been disbursed so far.
• This is the largest interest free small loans scheme in Pakistan
jointly ventured by a Government agency and a civil society
organization.
• Total funds released so far: Rs. 10 billion

13. Progress Report of
CMSES- Punjab
PROGRESS UPDATE
Recovery
99.94%
Average Loan Size
201
280 Million
Active Loans
550,000
OLP $
80.0 Million
Total Disbursment $
450
No. of Branches
(As of 30th September, 2016)
Female Male
45% 55 %
600,000 800,000
1,400,000Total Loans

14. Akhuwat Branches

15. Picture of Rajanpur Branch, Rajanpur

16. Picture of Bahwalpur Qasim Town Branch, Bahawalpur

17. Picture of Jahania Branch, Khanewal

18. Picture of D.G Khan Branch

19. Beneficiaries of Akhuwat

20. Bicycle Repair

21. Sewing & Tailoring

22. Carpenter

23. Vegetable Stall

24. Production

25. Thank You

26. AlHuda CIBE FZ LLE - U.A.E
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