This loan is meant for any type of agricultural activity; production, processing or distribution. (purchase of farm inputs, tools, machines, agro-processing, livestock farming, farm related expenses, etc )
Loan terms and conditions:
To be a BPR client for at least 1 month
To be a credit worthy client
To be engaged in farming or farm related activities (eg. Agro-processing)
Present a bankable farming project
Loan amount depends on client’s payback capacity – income to be generated from the farming project
Loan amount is equivalent to not more 80% of the cost of the farming project to finance.
The client has to raise 20% of the cost as own contribution
Period is up to 5 years with possibility of a grace period for
Payment can be monthly, Quarterly or Seasonal depending on
the cash flow of the agricultural project.
Collateral should be equivalent to at least 125% of the financed project, it can be in form of:
Soft collateral (cash, assets like cars, machines, livestock, etc)
Hard collateral (real estate)
Joint guarantee for associations and cooperatives
Insurance cover for the collateral presented
For those farmers/ projects qualifying for a special guarantee fund, they may not need to provide any collateral or provide part of the collateral.