Online Loan Guide for Pakistan’s Farmers: Everything You Need to Know
Pakistan’s Farmers now have access to a groundbreaking digital loan initiative launched by the federal government. This new scheme offers up to Rs 1 million in unsecured, collateral-free credit for smallholder farmers to purchase essentials like seeds, fertiliser, and diesel. Announced by Finance Minister Muhammad Aurangzeb during the June 2025 budget, the move aims to improve food security, boost rural productivity, and accelerate financial inclusion.
What’s the catch-free offer?
- Loan amount: Unsecured, up to Rs 1 million per farmer.
- Purpose: Purchase of seeds, fertiliser, diesel, and other farm essentials.
- Disbursement: Entirely digital through partner banks like Bank of Punjab, UBL, MCB, and Bank Alfalah.
How to Apply & Deadlines
- Eligibility
- Genuine smallholder farmer (landowner or tenant).
- Valid CNIC, local residence proof, and age (generally 18–60).
- Should not be a defaulter of any financial institution.
- Electronic Warehouse Receipt (if applying via the warehouse receipt financing route.)
- Genuine smallholder farmer (landowner or tenant).
- Application Process
- Log in to the designated digital portal or mobile app (link below).
- Select loan amount and purpose.
- Upload required documents (CNIC, farm proof, EWR receipt if storing produce).
- Complete digital KYC and e-sign.
- Funds will be deposited into your connected bank account.
- Log in to the designated digital portal or mobile app (link below).
- Timeline & Repayment
- Apply from June 25, 2025 (announcement date).
- Deadline expected by August 31, 2025—verify with your bank.
- Typical repayment: 6–12 months, aligned with crop cycles.
- Apply from June 25, 2025 (announcement date).
How Pakistan’s Farmers Can Use the Warehouse Receipt System for More Credit
Together with the loan scheme, the government will launch a digitally enabled warehouse receipt system. Farmers can store grain in certified warehouses and use the receipt as collateral for the loan accessing up to 70% of the commodity’s market value. This ensures secure storage, cuts post-harvest losses, and helps farmers sell at peak prices.
Access the Digital Portal
For full application details and deadlines, visit the official announcement https://pmyp.gov.pk/
Why It Matters
- Empowers small farmers to grow independently and sustainably.
- Removes reliance on middlemen and informal lenders.
- Promotes transparency, fair pricing, and proper storage.
- Aligns with larger social reform goals: boosting BISP support and inclusive finance for women.
What You Should Do Next
- Visit the digital agriculture finance portal or your preferred bank’s agri‑finance section.
- Keep your CNIC, farm proof, and EWR documentation ready.
Apply before the likely August 31 deadline to secure funds for this season.
FAQ
1. Who is eligible for the digital loan scheme for farmers in Pakistan?
Smallholder farmers owning or leasing agricultural land, with valid CNICs and no history of loan default, are eligible. Applicants must apply digitally and meet basic KYC requirements.
2. How much loan can a farmer get, and for what purposes?
Farmers can access unsecured digital loans of up to Rs 1 million to purchase inputs such as seeds, fertilisers, diesel, and other essential farming supplies.
3. How can farmers apply for the digital agricultural loan and what is the deadline?
Applications can be submitted via digital banking platforms or the government’s dedicated agri-finance portal starting June 25, 2025, with the deadline expected by August 31, 2025. Required documents include CNIC, proof of farming activity, and, if applicable, an Electronic Warehouse Receipt.