KZTL stands for Kisan Zarri Taraqiati Loan. It is a loan product offered by NRSP Bank and possibly other institutions to farmers who need funding for agricultural development, such as purchasing equipment, fertilizers, seeds, solar systems, or irrigation tools. NRSP Bank
This loan helps farmers invest in their land, increase yield, and improve their overall farming operations.
Eligibility Criteria
To qualify for KZTL, applicants generally must meet the following criteria:
- Must hold a valid CNIC (Computerized National Identity Card)
- Not a defaulter of any bank or financial institution
- Provide collateral or acceptable security (e.g. land, vehicle, gold ornaments) NRSP Bank
- Must show proof of agricultural activity or land ownership
- Demonstrate ability to repay (income or cash flow)
- Age criteria may apply (depending on the bank’s policy)
Required Documents
Typically, the following documents are needed to apply:
- Application form (loan request form)
- Copy of valid CNIC
- Copy of land record / ownership documents / passbook
- Proof of agricultural activity (if required)
- Collateral/security documents (if needed)
- Recent photographs
- Any additional documents the bank may require (income proof, bank statements)
Benefits of KZTL
- Provides working capital when farmers need inputs like seeds, fertilizer, etc.
- Helps farmers buy or upgrade irrigation tools, solar pumps, equipment
- Flexible tenure options (short duration)
- May come with subsidized or lower markup than commercial loans
- Improves farm productivity and reduces cash strain during crop cycles
Loan Amount & Terms
- Minimum Amount: Rs. 30,000 (approx, as per NRSP scheme) NRSP Bank
- Maximum Amount: Up to Rs. 500,000 (depending on collateral and capacity) NRSP Bank
- Loan Duration (Tenure): 3 months minimum, up to 36 months in many cases NRSP Bank
- Repayment Frequency: Monthly, semi-annual, or lump sum (depending on applicant’s income source) NRSP Bank
- Markup Rate: As per bank’s schedule — varies depending on risk, collateral, market conditions NRSP Bank
- Early Closure Option: Allowed; markup is charged only for the utilized period NRSP Bank
Calculation of Installments (Example)
Let’s say a farmer takes Rs. 200,000 loan for 36 months at a hypothetical markup of 10% per annum (for illustration).
- Principal = 200,000
- Annual markup = 10%, so monthly ~ (200,000 * 0.10 / 12) = 1,666.67
- Total monthly payment ≈ principal share + markup
- If principal share (assuming equal installments) = 200,000 / 36 = 5,555.56
- Add markup ~1,666 → approximate monthly installment = ~ Rs. 7,222
Note: This is illustrative. The bank’s actual calculation may differ (reducing balance method).
How to Apply
- Visit your nearest branch of NRSP or participating bank offering KZTL
- Collect and fill out the loan application form
- Submit required documents and collateral as requested
- Bank will conduct credit check and evaluate your repayment capacity
- If approved, funds will be disbursed to your account
- Begin repayment per agreed schedule
Risks & Considerations
- If unable to repay, you risk losing collateral
- Markup or interest can increase overall cost
- Defaulting or delayed payments may affect credit score or blacklisting
- Always verify all terms, hidden charges, processing fees
Conclusion
The Kisan Zarri Taraqiati Loan (KZTL) is a valuable tool for farmers to gain working capital, invest in their land, and enhance productivity. But success depends on meeting eligibility criteria, understanding terms, and managing repayments responsibly. Always consult with the bank and read your loan agreement carefully.