Islamic Investment & Finance
Cooperatives Group

Agriculture Loans

AGRICULTURAL SCFA

financial assistance extended to qualified clients for agricultural purposes. This may include working capital to buy seeds, fertilizer and to pay for labor of farm workers.

Main Types of Agriculture related activities

Crop Farmers

Farmers who grow major crops are eligible to take loans under this category. Branch conducts a study in the operational area to understand the major crops grown and its seasonality. Based the seasonality Branch estimates how much investment required by farmers for various crops to invest in agricultural inputs (e.g. chemicals, fertilizers, seeds, labor charges etc.) and at what time. Wheat, Grapes, Almonds, Pomegranate, Vegetables are major crops for which BRANCH provide loans.

Livestock Farmers

These types of enterprises are normally community and home-based. Poultry or chicken raising either as broilers (meat) or layers (eggs), livestock rising such as cows, buffaloes, sheep, etc.

Agriculture based enterprises

Rice mills and other root crop processing are some of the examples of businesses under this category.

Farm Machines

These types of enterprises are normally tractors, rice mills and other crop processing related machinery.

Agriculture Loan Product

Features Details
Product
  1. Target Clients: Farmers
  2. Loan Size: AFN 25,000 – AFN75,000 (Loan Size would be decided by requested loan amount and loan applicant cash flows)
  3. Loan Repayment Term: At the time of crop harvesting for the which the loan has been taken
  4. Installments: Lump sum repayment of loan at the time of crop harvesting however the maximum repayment period is 9 months. However, loan size AFN. 200,000 in rare cases can be disbursed for 18 months.
  5. Mark-up payment: Borrowers have to remit Mark-up on monthly basis.
Price
  1. For loans, the Mark-up is 24% pa, on declining balance.
  2. Borrowers have to deposit 10% -20% of the loan amount (based on loan size) as Pledge Savings which would be returned at the time of completion of loan repayment.
Place
  1. Cash flow Analysis is done at borrower’s location
  2. Loan Disbursement and Loan repayment collection done at BRANCH Office

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