IRFAN Presentation

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Financial Support of Small Farmers

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Credit needs of the farmers at their doorsteps. Efficient, fastest and cheaper lending procedure. Simplified documentation. Timely disbursement. Transparent services. Focus on small farmers. Lowest Mark Up Provision of Timely Inputs Packaging credit with technology and appropriate marketing of inputs and outputs. Mobile Banking Competitive Features

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Small Farmers: Having land less than 20 Acres. Actually cultivating land i.e owners/tenants Socially excluded Geographically disenfranchised Away from socio-economic centers Live in calamity - prone areas. Defining Target Clientele

Conceptualizing Village Organization : 

Conceptualizing Village Organization

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Who Can Borrow? Only members of registered VO can borrow. Documents Required? Loan Application Form Guarantee of Two Members Post dated Cheque of any commercial bank. Affidavit stating timely recovery of loans. CNIC copy and photograph. LOAN IS ISSUED IN THE FORM OF INPUTS ONLY Financing Policy & Procedure

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Procedure: Loan applications are submitted to VO secretary. Credit committees make technical and social assessment of loanees. VO Secretary calls a meeting of executive body, in which loans are approved in the Presence of Credit Officer and Agriculture Officer concerned. Purchases of inputs demanded in loan applications is made from the market at the lowest price ensuring collective marketing benefit. VO also secures a pro-note and resolution from executive members before the issuance of check. Financing Policy & Procedure …..

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Service Charges 10 % per annum Credit Limit: For Kharif Crops: Rs. 8000/ Acre For Rabi Crops: Rs: 6000/Acre Loan Time Period For Production Loans Maximum 6 Months For Small Business: Maximum 2 Years Financing Policy & Procedure …..

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Two Guarantors Jointly Group Liability Post dated Cheque Having immovable property barred with Revenue Department. Affidavit from each member. Security Requirements

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Proper Follow Up Periodical Loan Recall Discount in service charges for Early Recovery Acceleration of repayment from guarantor Legal proceedings under cooperative Act. Help from Revenue Department. Measures for Recovery

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Establishment of Revolving Fund ( 2 – 4 million) in each project village, for production loans. Funds for Small Business/IDIs @ 10 IDI’s per Village. Matching grant against VO savings for establishing SFBC. 80% grant for purchase of implements at village level. 18 VOs have partially received revolving fund amounting Rs. 14.33 Million Only two VO’s have got partial grant for the establishment of implements. Establishment of Revolving Fund Targets Achievements

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Production loans amounting Rs. 9,689,038/- has been disbursed for Rabi 2010-11 benefiting 373 members of 15 VOs. 100 % recovery was made on production loans for Kharif 2010 of Rs. 8,550,702/-. A profit of Rs. 348,000/- was earned as services charges on loan issued for Kharif crop. An amount of Rs. 240,000/- has been collected as share money from 2390 members of 55 VOs. Eight VOs have invested their share money amounting in Small Farmer Business Center. Progress Review of Financing Revolving Fund Special Saving

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Total loan disbursed: Rs. 9,689,038/- Total members Benefited: 373 Total VOs covered: 15 Total area for which loan issued: 1900 Acres Recovery Date: 15 May 2011 Amount Recovered: Rs. 98050/- Inputs Provided: DAP 1427 Bags Urea: 4988 Bags SSP 80 Bags Potash: 22 Bags Diesel: 3808 Liter Weedicides: 38 Liter Outreach (Rabi 2010-11)

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All VOs are liable to maintain record as per cooperative Act 1925 that includes Cash Book, Ledger Book, Minutes of Meeting Register, Membership Register, Stock Register, Bank receipts etc. VO office bearers have been provided trainings for record keeping. All necessary guidance is provided to VO office bearers to maintain record properly Record Keeping

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Our Service is Beyond Savings and Loan. Develop First Then Follow By Loan. Assist farmers facing occupational problems Re-lending to members How to reduce cost of production, Living expenses, Farming tools & techniques. How to improve farming productivity etc. Farmers’ Coaching and Training Extra Credit Services

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Issuance of loans on need basis only. Linkages with Stakeholders Close Liaison with Farming Community Guidance to the Farmers/ Borrowers Training & Awareness Rural Deposit Mobilization and Fund Based Services Lessons Learnt from Experience

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Funds are not provided as promised to the farmers which creates anarchy among them. Per acre credit limit needs to be enhanced keeping in view the input prices. Diesel may also be treated as input and loans may be issued for purchase of diesel also. Sugarcane is the major crop of most project villages so loans for sugarcane crop may also be initiated. As per agreement NBP has not yet calculated any profit on the amounts deposited into VO accounts despite of several written communications. State of Affairs

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Thank you M. Irfan Arshad Cell No: +92(300) 6732379, Credit & VO Help Officer, Rahim Yar Khan