Farm Equipment Loan
Product Features
- Loan period for working capital purpose is up to a maximum 24 months but development/investment may exceed 24 months.
- No principal loan repayments during the grace period except for the interest where cash flows allows.
- Repayable through equal installment payments whose amounts are dependent on the projected cash flow of the agricultural activity
- Irregular payments can be structured basing on the cash flows
- Interest charged on reducing balance
- Minimum loan amount UShs. 100,000
- Payments from other sources of income are allowed
- Maximum loan amount of up to UShs 8 Billion.
Benefits
- Faster Loan processing speed
- Attractive interest rate
- Repayment plans structured to accommodate nature of cash flow
- Grace periods are offered
- Multiple disbursements offered to accommodate different stages of production cycle
Requirements
- Current or Savings Bank account
- Completed loan application form
- Payment of loan processing fee
- Financial card
- Project undertaken must be an activity in the agricultural value chain
- Experience in project being undertaken
- Business project must be profitable
- Applicant must be resident within the branch designated area of operation
- Applicant must be owner or tenant of the land on which he/she operates.
- Securities can be mortgaged on titled or unregistered land, moveable assets like cows, goats, sheep, mortgaged household property or business equipment and tools