Agriculture Credit Facilities - Summit Bank

Agriculture Credit Facilities

Summit Bank Ltd Offers Agriculture Credit Facilities Under Conventional and Islamic Banking Systems:

Summit Bank Limited (SMBL) offers financial assistance to the farmer community engaged in the Production & Development of Agricultural Sectors through Bank branches available across the country. SMBL having presence in all agriculture belts of the country ensures easy access to all types of farmers (individual, groups, commercial and corporate) engaged with activities involved in agricultural sectors in rural and urban areas.

The Bank provides Agriculture Credits to small, medium & large-scale land-owning farmers as well as large institutionalized units and alliance-based farmers, enhancing agricultural harvest and in turn, the economic output of the country.

Agriculture Credit means any facility (Fund based and Non-fund based) allowed to any person, firm or company for agricultural production/development/grading/polishing and storage of agricultural produce, etc. It includes such lending for Forestry, Horticulture, Fish farming, Dairy farming, Poultry farming, Renewable Energy, Farm Produce Storage, lending to the agricultural value chain, export of agricultural goods or for any other purpose declared eligible by the State Bank of Pakistan.

Bank Products / Credit Facilities are available under both Conventional & Islamic Banking for all types of customers (individual/groups/commercial/corporate) engaged in agricultural production activities and eligible for Production & Development loans.

Mode of Conventional Banking:

  • Running finance (RF) facility in general (regular schemes) and under Revolving Credit Scheme (one-time loan documentation is valid for 3 years) and through Value Chain Financing (with reference to end users of product) for crops, dairy and livestock farms, poultry, fisheries and other agricultural activities.
  • Development Loan (Term Loan) for land development & others
  • Financial assistance for the purchase of Assets through Summit Sarsabz Pakistan Tractor / Agri equipment and other Agri machinery required for farming & land development.
  • Dairy & livestock farm financing (purchase of milky & meat animals), construction of farm sheds and financing to meet other expenses
  • Warehouse receipt financing.
  • Watercourse Development & Tube well, land development through Alternative/ Renewable Energy.
  • Purchase of Tractor, its implementation & Farm Transport Credits.
  • Green House & Tunnel Credits.
  • Farm Storage /Warehouse Construction Credits.
  • Fish Farming inland and seafood under regular schemes and value chain financing.
  • Poultry farming, construction of sheds under regular schemes and value chain financing.
  • Fruit Trees farming /Forestry.
  • Flower & Nursery farming Credits.
  • Any other financial assistance to be deemed fit for the development of agricultural sector produce.

Non-Fund based Facilities:

  • Letters of Bank Guarantees
  • Letters of Credits
  • Others

Mode of Islamic Banking Financing for Farm & Non-Farm Agriculture sectors:

  1. Letters of Bank Guarantees
  2. Murabaha/Salam/Musawamah/Muzara’ a (for crops, dairy, poultry and fishing farming etc.).

  3. Term Financing (Development Loan):
    • Tractor Financing/Transport: Ijarah/Diminishing Musharka (DM)/Murabaha
    • Livestock & Dairy: Diminishing Musharka (DM)/Murabaha/Istisna
    • Installation of Tube wells/Turbine/Sprinkle/Drip Irrigation System, Water Management, Solar Energy Plants, and Pumps for Irrigation System: Ijarah/Diminishing Musharka (DM)/Murabaha/Ijarah-al-Ashkaas (Services Ijarah).
    • The lining of the water-course, cost of land levelling/development etc. Salam /Istisna.
    • Forest Development and enhancement: Diminishing Musharka (DM)/Murabaha.
    • Poultry, dairy sheds, fish farming and cold storage warehouse constructions: Diminishing Musharka (DM)/Murabaha/Ijarah and others as per requirements of the customers engaged with agricultural sector business.


  • Any other viable agricultural Credit products may be introduced by the Bank only after the approval of the Bank’s Agriculture Credit Committee.
  • All existing portfolios will continue in conventional mode until full settlement or conversion into Islamic mode products given above.
  • All the above Islamic Banking products/facilities and their Shar’iah process flow are to be approved by the Shar’iah Board/ Compliance Department of Islamic Banking.
  • All the available Islamic Banking products are subject to the approval of the Bank’s Shar’iah Board.

Farm Sector Financing:
Farm Sector financing products are designed to facilitate the farming community in obtaining agricultural production loans to meet the working capital needs of agriculture farming. Production loan means the amount disbursed for the purpose of sowing, producing, growing, harvesting and marketing of crops, vegetables, fruits, etc. and may include the cost of input/charges to be incurred on the acquisition of the material and services. The limit would be extended on a revolving basis and automatically renewed each year after fulfilling clean-up conditions under the terms of the loan agreement with the Bank & customer.

Salient Features (Production Loans)

  • Credit availability on a Revolving basis.
  • One-time documentation is valid for three years.
  • Easy processing.
  • Once clean-up of facility account in a year.
  • Option to use limit as per the requirement of the farmer.
  • Withdrawal and deposits at any time.
  • Markup will be charged on the amount utilized/withdrawn (outstanding debit balance).
  • A landlady can also avail of the facility by applying for a loan with her husband or blood relation i.e. brother or father as co-applicant.

Crop Inputs:
Crop input financing is specific finance for the purchase of seasonal crop inputs such as seeds, fertilizers, pesticides and other related financial assistance that are available on the easy terms for regular and value chain with the reference and undertaking of products end users and suppliers.

Tractors/Agricultural Vehicles:
Development Loans are available to individual farmers, self-employed for purchase tractors and transports used for agricultural purposes, providing the option to select transports /vehicles used by the farmer community from a range of different manufacturers.

Farm Implements:
Development Loans are available for the purchase of farm implements and machinery like combined harvesters, sprayers, ploughs, tube wells and other crop-related tools/implements.

Non-Farm Financing:

Livestock and Dairy Farming:
Production & Development Loans are available for the purchase of milky and meat animals, construction of sheds, purchase of required machinery and funds for the purchase of animal feeds, medicines, raw material, other labour charges and other related activities expenses.

Poultry Farming:
Production & Development Loans are available for all poultry-related activities including poultry farm construction/equipment, hatchery plant and machinery, poultry feed, poultry medicines, composite feed production, poultry processing and other related activities.

Fish Farming:
Production & Development Loans are available for inland fish farms as well as deep-sea fishing. This includes procurement of boats, fish locating equipment, nets & ropes, ice maker, fish farm water solution, hatchery construction/equipment, purchase of medicines/feed and other related activities.

Renewable Energy projects:
To facilitate farmers in availing credit for renewable energy financing for agriculture/land development. This would provide cheaper credit to farmers to shift from existing expensive energy options.

Other Areas:
The customers engaged in all the activities relevant to the Agriculture sectors may avail of Bank financial assistance “Production & Development loans” to meet their short & long-term financial requirements.

Group Lending:
Joint finance facility for a group of farmers with small land holdings for the working capital requirement.

Eligibility criteria of the Customer/Farmer to avail Bank financial assistance:

  • Should be a Pakistani & holding valid CNIC.
  • An account holder with Summit Bank.
  • Permanent resident of the area.
  • Should be Agri land owner/cultivator; Self-cultivator/landlord.
  • Minimum 3 years of experience in relevant field.
  • Not a defaulter with any Bank/FIs
  • Have repayment capacity.
  • Able to produce proper securities/Passbooks/ other sureties.
  • The applicant customer shall be 18 to 65 years of age.
  • Individuals may produce any proof to cultivate Agri land and are engaged in the business of agriculture sectors.

Bank requires a Security/Collateral from the list below against the Credit Facility:

  • Bank charge on Agri Land through Zarie Passbook.
  • Mortgage of Gold/other liquid security.
  • Lien over deposit accounts/TDRs.
  • Mortgage of Rural/Urban property other than Agriculture Land.
  • Hypothecation of Farm equipment with backup collateral.
  • Join registration of tractor/vehicle with backup collateral.
  • Corporate Guarantee of Agriculture produces processing units.
  • Liquid Securities (Lien over cash deposits, Defense Saving Certificates, National Saving Certificates, etc.).
  • Any other collateral required by Bank for conventional and Islamic Banking facility(s).

Other Terms & condition

  • Each customer shall submit a request on Bank Loan Application Form and fulfil all the requirements and documentation with Bank.
  • Each individual/group/corporate shall submit proof of agriculture business.
  • Clean e-CIB.
  • Financial assistance for farmers engaged in both the agriculture sector activities shall follow guidelines given in the latest SBP “indicative eligible limits and items list”.
  • Markup rate is variable linked with KIBOR.
  • Markup payment frequency against working capital production loans will be set monthly/quarterly/half yearly or lump sum linked crops harvesting cycle/cash inflows. Repayment of development loans instalment frequency based on monthly/quarterly/half yearly/yearly for development loans with agreeability of customer & Bank.
  • The minimum landholding size is 5 acres (variable with a value of land) required for the purchase of tractors and machinery.
  • Any other document required by Bank

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Last Updated 2023-05-26

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