Revolving Production Loan
Product Features
- Credit revolves for a maximum duration of 3 years
- Increase in loan amounts annually by 10%
- Loans are made available for each crop season and repaid
- The line of credit will be for 121% of credit limit accessed for first year
- Interest is charged on declining balance
- Outstanding loan at any time does not exceed the limit for the year
Benefits
- Attractive interest rate
- No fresh credit appraisal needed for three years provided no enhancement in the limit is required
- Reduced loan documentation expenses
- Grace periods are offered
Requirements
- Current or Savings Bank account
- Completed loan application form
- Payment of loan processing fees
- Financial card
- Repeat borrowers who have promptly repaid 4 successive agricultural production loans
- Farmers area under cultivation or cropping has not changed
- Security acceptable such as mortgage including kibanja, chattels, crop insurance etc.
- Personal guarantee by two (2) Guarantors