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:

Eligibility

 To be a BPR client for at least 1 months
 To be a credit worthy client
 To be engaged in farming or farm related activities (eg. Agro-processing)
 Present a bankable farming project

Terms

 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
 Loan payment:

o Period is up to 5 years with possibility of a grace period for certain projects,

o Payment can be monthly, Quarterly or Seasonal depending on the cash flow of the agricultural project.

 Security:

Collateral should be equivalent to at least 125% of the financed project, it can be in form of:

o Soft collateral (cash, assets like cars, machines, livestock, etc)

o Hard collateral (real estate)

o Joint guarantee for associations and cooperatives

o Insurance cover for the collateral presented

o For those farmers/ projects qualifying for a special guarantee fund, they may not need to provide any collateral or provide part of the collateral.