The State Bank of Pakistan has launched the Zarkhez-E scheme under the National Subsistence Farmers Support Initiative.
- Farmers will get inputs, advisory services, and insurance support.
- Loans need no collateral. Most funds go directly to agri-input vendors.
Small farmers across Pakistan can now apply for agricultural loans of up to Rs 1 million through the Digital Zarkhez app. The State Bank of Pakistan (SBP), the Ministry of Finance, and the Pakistan Banks Association launched the platform to make farm loans easier and faster.
The scheme operates under the name Zarkhez-E and follows the National Subsistence Farmers Support Initiative. SBP shared the details through its Agricultural Credit and Microfinance Department.
How the Loan System Works
Farmers can submit loan applications online without visiting bank branches. After verification and land checks through the Land Information Management System (LIMS), the app sends the request to the farmer’s selected bank.
Banks will provide 75% of the loan to buy agricultural products through pre approved vendors. These include seeds, fertilizer, pesticides, and diesel. The remaining 25% will be given in cash to cover other farming needs.
Each farmer will also receive Agri advisory services through LIMS to improve crop planning.
Who Can Apply and Loan Limits
Land limits differ by province. Farmers owning this much land can apply:
- Punjab and Khyber Pakhtunkhwa: up to 12.5 acres
- Sindh: up to 16 acres
- Balochistan: up to 32 acres
Banks will provide financing of up to Rs 1 lakh per acre. The maximum loan limit is Rs 10 lakh for landowners and Rs 5 lakh for tenants.
The government will cover 10% of initial losses to reduce bank risk. Banks will also receive Rs 10,000 per borrower as operational support.
Insurance and Bank Integration
Every borrower will receive life insurance equal to the loan amount. Crop insurance will apply to five major crops under the Crop Loan Insurance Scheme.
Most banks and microfinance institutions have linked their systems with the digital portal. SBP has asked the remaining banks to complete integration.
SBP said the Digital Zarkhez app aims to increase access to finance, support small farmers, and improve agricultural productivity across Pakistan.
