Manual on Loan Policy & Procedure for Non-bank Financial Organizations Established Under the World Bank Funded Farm Privatization Support Project Tajikistan
This manual explains policy and procedure for appraisal and sanction of loans by non-banking financial organizations (NBFOs) in Tajikistan.
The government of Tajikistan identified agriculture as a priority sector for stimulating economic growth in the country. It implemented a project to transform existing state and collective farms into individual farming units. In order to address the capital needs of emerging private farmers, the government developed NBFOs that would provide farmers with short-term, seasonal credit. The manual is meant for staff, members and borrowers of NBFOs as well members of credit committees and the board of directors. It defines roles, functions and responsibilities of elected as well as executive bodies.
The manual also explains other areas relevant to credit delivery system. These include:
- Components of lending activity;
- Credit management;
- Formulation of annual business development plan and profit plan;
- Loan recovery management.
