Page 8 - NIBAF-Training Matters July - December 2022

SBP encourages MFBs to extend its support to
‘Government’s Markup Subsidy Scheme’ to offer
‘Tier 0’ financing facilities to marginalized segments
residing in rural and peri-urban areas. In order to
prepare MFBs to expand their business in the
housing sector, capacity building of their teams is
required in the area of mortgages documentation,
lien perfection in rural areas, and other important
aspects of housing finance. Accordingly, NIBAF
developed and conducted customized training
program on Sale-techniques & GMSS scheme and
Cash-based Lending & Credit Assessments for
MFBs. Senior Microfinance bankers attended the
program. These programs primarily designed to promote micro industry potential to promote government schemes
government schemes on housing sector and it explained for housing sector, potential of housing sector across
the potential of housing sector across Pakistan. The Pakistan, the requirements for security documentation
subject specialist shared their insights and experience on and their role in credit risk mitigation.

Agriculture is an important sector of NIBAF in collaboration with SBP place/business, vetting all the
the economy in terms of its has initiated an extensive capacity property documents to establish
contribution to economic growth, development programs for banks. title genuineness, evaluation of
employment generation and This program aims to equip loan-size & its purpose, loan price
ensuring food security Increased bankers with necessary tools and and duration etc. The credit officers
farm mechanization and efficient techniques to serve their targeted must also ensure pre-requisite of
crop sowing are the need of hour priority sector more effectively and credit proposal are met which
for better and timely produce. efficiently. Details of some of the include assessment of borrower
Increased demand of agri-produce important programs conducted credit history, visiting borrower’s
and need of the farmer community over the six months are as below. place/business, vetting all the
to employ innovative farming documents to establish title
techniques (farm mechanization Agri Credit Risk & Security genuineness, evaluation of loan-
and efficient crop sowing) creates Documentation for Agri- size & its purpose, loan price and
lucrative opportunities for the Officers duration etc. The officials must
banks to tap potential of this further have a through understand
segment and direct agri-credit to NIBAF organized three programs of the various type of
innovative agri borrowers. SBP is on the topic from November- assets/properties, their nature,
taking various initiatives and legal attributes, legal entitlement
measures to address agri-related December, 2022 including two that constitute security and
online programs and one class
shortcomings and promote based program. collateral.
agriculture financing. Given this important role of agri
In order to build thorough The objectives of this program is to officers, organizational
develop understanding of banks’
understanding of agri sector and officials regarding credit risk, need expectations from agri officers
various measures taken by SBP, credit and the significance of
of securitization in agri- vigilance in underwriting
lending, legal concepts of processes, this program was
various assets & conducted to develop required
underlying securities, expertise in agri officers and to
significances and legal enhance their understanding of
aspects of documentation. credit risk, its assessment and
Agri credit officers are also securitization.
required to ensure The program was conducted on
completion of the ground Oct 24-25, 2022 at NIBAF-Lahore
work of a credit proposal in by Mr. Adnan Adil Hussian and Mr.
borrower assessment Yahya Hameed. Mr. Adnan is a
through analysis of credit legal expert with vast experience in
history, visiting borrower’s
Agri lending who shared his