The Government of Punjab (GoPb) has taken an initiative to promote the wellbeing of small farmers through provision of interest free and easy access to financing in Punjab. The objective of the Interest Free Agri. E-Credit Scheme is to reduce the cost of production for these marginalized farmers and to increase the outreach of formal and digital financial services to meet the agenda of financial inclusion. Akhuwat has been selected as one of Participating Financial Institutions (PFIs) to implement the scheme with small holding farmers and tenants/sharecroppers having landholding up to 2.5 acres in selected districts of the Punjab.

• A unique initiative for agriculture lending in the Punjab
• The scheme is for entire province however Akhuwat has to provide loans in selected districts to:
• Farmers having land holding of up to 2.5 acres with preference to the landless
• Tenants and sharecroppers are also eligible subject to their tenancy agreement
• Loans are provided for Rabi and Kharif crops (all six months crops are covered under this scheme)
• Loans are awarded on social collateral or personal guarantees
• Farmers must be registered with Punjab Land Record Authority (PLRA) of GoPb.

• Some essential parameters will be set for the distribution of the loans:
• Farmer should have a valid CNIC.
• Farmer should not be convicted of any criminal offence
• Farmer should have a good social and moral character in his community.
• Farmer should be resident of the operational area of an Akhuwat branch.
• Farmer must be of good health.
• Farmer should hold verification/registration receipt issued by PLRA.
• Farmer should hold land up to 2.5 acre.
• Tenant should provide tenancy agreement.
• Farmer must be willing to constitute a group.