Agribusiness Loan
This is a short to Medium term credit facility to help farmers in purchase of farm inputs such as seeds, fertilizers and chemicals, pay for lease of additional agricultural land, buy livestock, meet their harvesting and marketing costs and also finance other social development needs.
Value Range
Minimum Kes100,000 – Maximum based on client ability to pay
Product Features
- Secured by a combination of any acceptable tangible securities such as title deeds, log books, listed shares, cash cover etc.
- Interest rate as per CBK regulation
- Interest rate calculation payable in arrears on reducing balance or flat rate
- Method of loan repayment either EMI, bullet payment or as per the customer cash flows.
- Loan advanced both in Kenya shilling and foreign currency
- Maximum 3 years for machinery, equipment and any farm asset financing.
- Maximum of 1 year or crop production period/cycle whichever is shorter for farm inputs financing
Requirements
- Detailed Analysis of the agricultural project including expected revenues and all the cost items e.g. seeds, animal purchases, herbicides, pesticides, harvesting and labour.
- A comparative analysis of the neighborhood to establish the kind of farming carried out, expected harvest and suitability of the farming activity the customer is carrying out
- 12 months bank statement
- Provide documentary evidence of ownership of farm to be used for the production or a valid lease agreement covering at least one future production cycles
- Provide documentary evidence of at least three year experience in the line of business
- Good credit history
- For limited companies Specific debenture over the asset being purchased
Eligibility Items
- KYC documents i.e. directors ID and PIN, Company PIN, MEMART and Certificate of registration
- Business records
- Copy of security
- Land ownership/lease agreements documents
- Dully completed loan application as per account mandate and appraisal form, resolution to borrow.
- Current Valuation Report from bank’s authorized valuers is required for used motor vehicles
- Complete security perfection after the approval.
- Detailed call report including photos and sketch maps