DANIDA Agricultural Loan

Loan designed to primarily provide working capital for increasing agricultural production in Rakai District. Agricultural activities like crop and animal production (diary, poultry and piggery projects), dairy, poultry, livestock breeding and others. The loan period and repayment plan is dependent on the nature and season of the agricultural activity to be financed.

Main Features:

• Loan period is up to a maximum 12 months.
• Grace periods are applicable.
• Repayment in equal installments whose amounts are dependent on the projected cash flow of the agricultural activity practiced.
• Interest charged on reducing balance.
• Minimum loan amount UShs. 100,000/=.
• Maximum loan amount is UShs. 20 million.

Basic Requirements:

• Savings or Current account with the bank.
• Project undertaken must be an activity in the agricultural value chain.
• Business project must have a minimum of 2 production seasons.
• Applicant must be resident in Rakai District.
• Applicant must be owner or tenant of the land on which he/she operates.
• Securities include land titles, unregistered land or moveable assets like cows, goats, sheep, household property or business equipment and tools.
• Application fee of UShs. 5,000/=.
• Commitment fee of 2%.
• Completed agricultural loan application form.

Benefits:

• Faster loan processing speed.
• Attractive interest rate.
• Repayment plans structured to accommodate the crop seasonality or animal production cycle.
• Grace periods are offered.
• Multiple disbursements offered to accommodate different stages of production cycle.