Small Farmers Loan Scheme 2025
The Government of Pakistan has taken another step to support the agricultural sector by launching the Small Farmers Loan Scheme Pakistan 2025. This scheme is specially designed to provide financial assistance to small farmers across the country so they can easily obtain loans from banks without unnecessary difficulties. The State Bank of Pakistan (SBP) has issued detailed instructions to all banks to ensure smooth implementation of this scheme.
Agriculture is the backbone of Pakistan’s economy, and small farmers play a major role in it. However, many farmers struggle due to lack of capital, expensive seeds, high input costs, and limited access to financial facilities. This new loan scheme aims to solve these problems by providing easy credit facilities to small farmers for crops, livestock, and fisheries.
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Objective of the Small Farmers Loan Scheme Pakistan 2025
The main purpose of this scheme is to empower small farmers financially. Through this scheme, farmers will be able to:
- Improve crop production with timely financial support.
- Invest in livestock farming such as dairy, poultry, and goats.
- Expand fish farming and related activities.
- Reduce dependence on informal lenders who often charge high interest.
By providing access to formal banking channels, the government aims to bring stability to the agricultural sector and ensure that farmers get equal opportunities to grow their businesses.
Coverage Period and Eligible Regions
The Small Farmers Loan Scheme Pakistan 2025 will remain active for a three-year period.
- Start Date: 1 July 2025
- End Date: 30 June 2028
This scheme will benefit farmers from every province and region of Pakistan. Eligible areas include:
- Punjab
- Sindh
- Khyber Pakhtunkhwa
- Balochistan
- Azad Jammu & Kashmir
- Gilgit
This wide coverage makes it one of the most inclusive farmer support programs in the country.
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Sectors Covered under the Loan Scheme
The scheme is not limited to just crops. Farmers from multiple agricultural sectors can benefit. The covered areas include:
- Crops — Farmers can apply for loans for all kinds of seasonal and cash crops such as wheat, rice, maize, cotton, and vegetables.
- Livestock — Dairy farming, poultry farms, and goat/sheep rearing activities are eligible.
- Fisheries — Farmers involved in fish farming and related businesses can also get financial support.
This wide range ensures that small farmers from different backgrounds can equally take advantage of the scheme.
Loan Amount and Duration
One of the biggest features of the scheme is the flexibility of loan size and tenure.
- Farmers can apply for loans up to PKR 3,000,000.
- For most crops and activities, the loan duration is 12 months.
- For sugarcane farming, the duration is 18 months due to its longer crop cycle.
This setup makes it convenient for farmers to repay the loan according to their crop cycle.
Loan Repayment and Government Coverage
The State Bank’s circular has clarified the repayment terms:
- If the farmer fails to repay the loan within 12 or 18 months (depending on the type of activity), the loan will be considered a loss.
- In such cases, the government will cover only the principal amount.
This arrangement protects banks from heavy losses and encourages them to issue more loans to farmers without hesitation.
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Bank Incentives
To ensure that banks participate actively, the government has introduced a special incentive:
- PKR 10,000 will be given to banks per borrower.
This step motivates banks to provide loans to more farmers and expand the scheme’s reach.
How Farmers Can Apply for the Loan Scheme
Farmers who wish to benefit from the Small Farmers Loan Scheme Pakistan 2025 can follow a simple process:
- Visit a Bank Branch
Farmers should go to the nearest commercial bank branch that is participating in the scheme. Almost all banks will be part of it since SBP has issued instructions. - Fill in the Application Form
Farmers need to fill out the loan application form available at the bank. - Submit Required Documents
Usually, the following documents are required:- National Identity Card (CNIC)
- Proof of land ownership or tenancy papers (if applicable)
- Details of farming activity (crops, livestock, or fisheries)
- Any additional documents requested by the bank
- Verification by Bank
The bank will review the application, verify the documents, and assess eligibility. - Loan Approval and Disbursement
Once approved, the loan amount will be transferred to the farmer’s account or provided as per banking procedures.
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Key Information Table
| Feature | Details |
| Scheme Name | Small Farmers Loan Scheme Pakistan 2025 |
| Authority | State Bank of Pakistan (SBP) |
| Duration | 1 July 2025 – 30 June 2028 |
| Eligible Regions | Punjab, Sindh, KP, Balochistan, AJK, Gilgit |
| Eligible Sectors | Crops, Livestock, Fisheries |
| Maximum Loan Amount | PKR 3,000,000 |
| Loan Duration (General) | 12 months |
| Loan Duration (Sugarcane) | 18 months |
| Government Coverage | Principal Amount Only |
| Bank Incentive | PKR 10,000 per borrower |
Benefits of the Scheme for Farmers
- Easy access to loans through banks.
- Equal opportunities for crop, livestock, and fisheries farmers.
- Large loan size up to PKR 3 million.
- Secure repayment terms with government support.
- National-level coverage for farmers from all regions.
Final Words
The Small Farmers Loan Scheme Pakistan 2025 is a landmark initiative by the government to strengthen the agricultural economy. With loans up to PKR 3 million, flexible repayment terms, and special incentives for banks, the scheme is expected to improve the financial conditions of farmers and increase agricultural productivity.
For small farmers, this is a golden opportunity to access formal financial support and invest in their crops, livestock, or fisheries. By using this facility, farmers can not only grow their income but also play a vital role in ensuring food security and economic stability in Pakistan.
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Frequently Asked Questions (FAQs) about Small Farmers Loan Scheme
Who can apply for the Small Farmers Loan Scheme Pakistan 2025?
Any farmer from Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Azad Jammu & Kashmir, or Gilgit can apply. The scheme covers crops, livestock, and fisheries.
What is the maximum loan amount I can get?
Farmers can get a loan of up to PKR 3,000,000 under this scheme.
What is the loan duration?
- For most crops and activities: 12 months.
- For sugarcane farming: 18 months.
What happens if I cannot repay the loan on time?
If you fail to repay within the given period, the loan will be considered a loss, but the government will cover the principal amount to protect banks.
How can I apply for the loan?
You can apply by visiting your nearest bank branch, filling out the loan application form, and submitting documents such as CNIC, land ownership or tenancy papers, and details of your farming activity.
Will banks get any incentive for giving loans to farmers?
Yes. Banks will receive PKR 10,000 per borrower from the government to encourage them to provide more loans.
When will the scheme start and end?
The scheme will start on 1 July 2025 and continue until 30 June 2028.