HBL introduces an Agricultural Lending Scheme considering Crop as Collateral



Pakistan is progressing with its plans to achieve financial inclusion for the low income and key segments of the society who lack access to the regulated financial services. As part of similar efforts, HBL Pakistan (Habib Bank Limited) has just introduced its agricultural lending scheme that allows Farmers to provide Crop as collateral rather than the agricultural land.

The initiative has been introduced through the key effort put forward by Pakistan Agricultural Coalition (PAC), a non-profit organisation comprised of over 20 leading business groups of Pakistan. PAC is committed to promoting and developing Pakistan’s agriculture sector. According to PAC, this initiative will open doors for Pakistani Farmers to benefit from the lending scheme that considers the warehouse receipts financing & available stock of crop. Currently, the initiative is being taken as a pilot program linked with the collateral management regulations 2017 by SECP and a wider adoption will be exercised at a later stage.