Rockefeller Farmer Guarantee Program (RFGM)

The RFGM is a loan guarantee program through which the Rockefeller Foundation reimburses to Centenary Bank 50% of the unrecovered loan principal and interest for agricultural production loans offered to smallholder farmers in selected areas of Uganda. The guarantee is aimed at enabling smallholder farmers with cultivable land size of 10 hectares or less increase their income from stable to value added crops. The main feature, basic requirements and benefits of the loan under RFGM are stated below.

Main Features:

• Loan period is up to a maximum 12 months.
• Grace periods are applicable.
• Repayment is 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. 15million.

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 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/=.
• Completed agricultural loan application form.
• Commitment fee of 2%.

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.