Overview
This is a credit facility offered to produce farmers for the purpose of financing cultivation expenses such as purchase of agro in-puts including but not limited to crop seeds, fertilizers, pesticides and meeting of labour expenses etc.
Product Features
Credit revolves for a maximum duration of 3 years
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Increase in loan amounts annually by 10%
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Loans are made available for each crop season and repaid
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The line of credit will be for 121% of credit limit accessed for first year
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Interest is charged on declining balance
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Outstanding loan at any time does not exceed the limit for the year
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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
Letter of Continuing Security in case of loans secured by mortgage
Loan request-cum-loan document link
Loan officer visit prior loan disbursement at every cycle
