Overview
Short-term loan product requiring a customer who is either s Producer-farmer or Processor to save every month a certain sum for a specific period to reach a targeted amount and at the end of the savings term – usually 12/24 months the customer can be availed a loan against the savings for financing a certain purpose like acquisition of farm equipment, building a farm store or purchase of agricultural processing equipment
Product Features
Interest rate on deposits as per the Banks Savings account regime
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Interest charged on declining balance as per reining interest regime
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Loan amount of 2 to 3 times the amount of savings up to a maximum of UShs5 million
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Loan period of up to a maximum of 36 months
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Mode of loan repayments based on the nature of cash flow
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Benefits
Save 25% of loan amount intended for a specific purpose
Faster loan processing speed
Attractive interest
Grace periods offered on a case-by-case basis
No penalty for early loan repayment
Entire savings repaid with interest on maturity
Requirements
Current or Savings Bank account
Completed loan application form
Payment of loan processing fees
Financial card
Clients of consent age engaged in agriculture
Maintain regularity in saving UShs. 20,000 every month for a minimum of one year
Security is hypothecation/mortgage of asset purchased and a lien on savings accumulated
