What is “Revolving Credit Scheme” offered by State bank of Pakistan?

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1. Guest6096
   

   Revolving Credit Scheme was introduced in 2003 in consultation with banks. Under the scheme, banks which are eligible from State bank of Pakistan can provide finance for agricultural purposes on the basis of revolving limits for a period of three years with one-time documentation. The borrowers are required to clear the entire loan amount (including mark-up) once in a year at the date of their own choice. Multiple withdrawals are allowed and the borrowers are also allowed to make partial repayments. Only the amount utilized by the borrower will attract mark-up. This facility can be availed by the farmers just like “running finance”. The limits under this scheme are automatically renewed on annual basis without any request or fresh application.

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