Page 5 - NIBAF-Training Matters April - June 2022

Agriculture is an important sector of credit proposal that include credit evaluations in terms of obligors,
the economy and contributes history of the borrower, visiting size and pricing of the loan,
significantly towards economic borrower’s place/business, vetting understanding of early warning
growth besides ensuring food all the documents to establish title signals, underlying security,
security and employment genuineness, evaluation of loan- collateral & various guarantees,
generation. Increased farm size & its purpose, loan pricing and and evaluation of repayment flows.
mechanization and efficient crop duration etc. Hence it is imperative The participants took active
the
sowing are the need of the hour for for agri-credit officers to participation to in enhance training
of
their
program
understand
various
types
better and timely produce. Keeping assets/properties, their nature, understanding of risk assessment
in view increased demand of agri- legal attributes, legal entitlement and remedial management.
produce, innovative farming that constitute security and
techniques create lucrative collateral. These training programs Agri-Lending
opportunities for the banks to tap discussed various revenue Techniques
potential of this segment and direct documents, related Acts, Articles &
agri-credit to innovative borrowers. Clauses, passbook & its attributes; NIBAF organized four face-to-face
SBP is taking various initiatives and Land Record Management programs on Agri finance. Two
measures to address agri-related Information System (LRMIS), types training programs were on Agri-
shortcomings and promote of charges, personal guarantees lending techniques during the
agriculture financing. This requires etc. This training program further quarter. The objective of this
thorough understanding of agri- provided comprehensive know- program was to enhance the skill
how to credit risk and various
sector and various measures taken documents required for any loan set of banking officials in order to
by SBP. disbursement. The participants undertake marketing and sale of
demonstrated keen interest and agri-product in effective and
NIBAF in collaboration with SBP efficient manner. This training
initiated an extensive capacity recommended more such program discussed various types
development program for banks in programs to be conducted in this of agri-financing products and
domain.
this area over the last two years. matching potential customers
These programs aim to equip along with risk profiling,
banks with necessary tools and Remedial Management in assessment and understanding of
techniques for serving the subject Agri-finance requisite documents. The course
priority sector more effectively and also highlighted various financing
efficiently. During the quarter, One online program on Remedial products and SBP Re-finance &
NIBAF conducted seven free of Management in Agri-finance was Credit-guarantee schemes.
cost training programs pertaining also conducted over the quarter. Conducting marketing survey,
to different aspects of agri- The objective of the course was to
financing for commercial banks. highlight the significance of credit
monitoring, recognize & evaluate
problem loans, causes of default
Credit Risk & Security and its impact on overall loan
Documentation portfolio, types of risks & their

Two online programs on Credit
Risk & Security Documentation
were conducted during this
quarter. The objectives of this
program is to develop
understanding of banks’ officials
regarding credit risk, need of
securitization in agri-lending, legal
concepts of various assets &
underlying securities, significances
and legal aspects of
documentation. For any credit
underwriting, it is important to
determine borrower’s capacity and
willingness to pay. The credit
officers ensure pre-requisites of