April 7: Banks and Financial Institutions (BFIs) have started attracting commercial farmers into their loan schemes through credit cards.

BFIs have shifted their focus on providing loans to commercial farmers under pressure from the government to expand agriculture loan and to facilitate the farmers’ desire to use modern technology in farming.

Banks such as Agriculture Development Bank, Mega Bank, Civil Bank, Nepal Bangladesh Bank, Global IME Bank among others have already started issuing credit cards for farmers. Those banks have started providing loans to the farmers through credit cards in collaboration with the local units and private companies.

According to this scheme, banks make the approved loan available to the farmers through credit cards. Farmers can make payment for fertilizer, seeds, agricultural equipment and tools through their credit cards. To avail this service, the farmers must visit the designated sellers who are also linked with the bank.

The Nepal Rastra Bank (NRB) had announced credit card facility for farmers through the monetary policy of the last fiscal year. To back this concept, Agriculture Development Bank had launched credit card for the farmers on the occasion of its anniversary more than a year ago.

Agriculture Development Bank’s CEO Anil Kumar Upadhyay says that the bank does not only provide financial service to the farmers through the cards but also market information.

“Farmers can make purchase with the loan amount that has been approved. The bank has also launched an application to help the farmers use the credit cards.  Through this app, we provide the farmers with market information, weather situation and other technical advise,” said Upadhyay.

Private banks have also shown interest in this scheme after the central bank included this concept in the monetary policy. The private banks have started providing loans to the farmers in collaboration with the  local units and private companies.