Govt. of Pakistan announced Markup Subsidy and Risk Sharing Scheme for Farm Mechanization (MSRSSFM) under Kissan Package provide relief package for the farmers across Pakistan in December-2022. The purpose is subsidy to the farmers for purchase of key farm machinery. In the backdrop of unprecedented rise in markup rate, inflation and increase in cost of machinery requirement for crops, this scheme provides affordability to farmers.
All farmers and corporates engaged in agri crop production are eligible
to avail this facility from all commercial banks including Islamic banks in
Pakistan. Key farm machinery required for preparation of land, field practices
and subsequent post-harvest drying and transport of crop produce, the machinery
covered under this scheme is of high value to farmers. Availability of loan is
on first come first serve basis.
Machinery Eligible for Finance under MSRSSFM:
1.
Tractor
2.
Thresher
3.
Harvester
4.
Planters
5.
Mobile Grain Dryer
6.
Solar Tube Wells
Markup Rate, Tenure and Equity Participation
The farmers/ entities are eligible for finance at pricing of 7 percent per
annum with a down payment of 25 percent and bank finance 75 percent.
Categories
|
Category-1 Tractor & Thresher |
·
All farmers are eligible. ·
New and used Tractors & Threshers (up to
3 years old) are eligible for financing. ·
In case of used Tractors and Threshers,
valuation report from PBA approved evaluator will be required for assessing
loan tenor/useful life of machinery. ·
Hypothecation of the asset purchased will be
acceptable as collateral. |
|
Category-2 Harvesters, Planters Mobile grain dryers Solar Tube-wells |
·
All farmers, processors, corporates engaged
in agriculture crop production. ·
New and used Harvesters, Planters, Mobile
grain dryers and Solar Tube-well (up to 3 years old) are eligible for financing. ·
In case of used Harvesters, Planters, Mobile
grain dryers, Solar Tube-well, valuation report from PBA approved evaluator
will be required for assessing loan tenor/useful life of machinery. ·
Hypothecation /any collateral acceptable to
bank as per policy. |
Application Process
Applicants can easily apply with simple information on Prime Minister’s
Youth Program Portal.
Link: Youth
Development Programme (pmyp.gov.pk)
& go to the following link:
Application guidelines are also available online.
Select the name of bank from where you want to apply loan and after successful
verification of the application, the representatives from that bank will contact
the application and loan will be processed.
Banks will follow their internal criteria for application processing
under this scheme and decision will be communicated to the applicant.
Mode of Disbursement
The payment through disbursement of approved finance for purchase of
machinery / equipment will be made directly by the bank to the vendor/
manufacturer/ seller.
Validity of Scheme
The validity of scheme is 12 months from the date of issuance of circular by State Bank of Pakistan i.e., December-2023.
