Farmers/Agric Loan

Posted on: 23 October 2022

Farmers/Agric Loan

These shall be loans to farmers in the Bank’s catchment’s area.

Ø  All farmers engaged in active farming shall be eligible for credit after operating accounts   with the Bank for at least three (3) months.

Ø  Farmers who channel their farm proceeds through the Bank shall be eligible.

Ø  There shall be Deed of Undertaking by Purchasing Clerks/Purchasing Agents to channel farm proceeds cheques through the Bank.

Ø  All loans shall be properly appraised and evaluated by the Credit Department.

Ø  Loan repayment shall be on installment basis or regular cash lodgments during the harvesting season.

Ø  Duration of loans shall not be more than 12 months. However, long-term loans shall attract a cash lien of 15%, a commitment fee of 6%.

Ø  Guarantors shall be two (2) salaried workers who receives their salaries through the Bank.

Ø  Loans shall be disbursed to applicants within 10 days provided applications are approved and ratified where applicable and availability of funds.

Ø  Loans appraised and evaluated by the Credit Department shall be endorsed by the Chief Executive Officer and forwarded to the Loans Committee and/or Full Board where applicable.

Ø  Extension of loans’ duration shall be granted upon detailed evaluation of borrowers’ requests.