The central bank Friday extended agriculture loans tenor from three to five years for Small and Rural Enterprises (SREs), the regulator reported.
The farm loans are disbursed by the banks under the Credit Guarantee Scheme of the State Bank of Pakistan (SBP) to facilitate eligible farmers for purchase of tractors and other agriculture implements.
“To avoid portfolio concentration in tractor and other implements financing, the aggregate financing under this category shall not exceed 20 percent of the total allocated guarantee limit of the bank,” warned an SBP circular issued Friday.
SBP extends farm loans tenor to five years
