Small-scale farmers Kilimo Biashara loan from Equity Bank

    November 25, 2015   No comments

Agriculture is the backbone of the kenyan economy.In a bid to support the expansion of this sector, lending institutions have come up with various loan facilities targeting farmers.
Let us step into Equity Bank today.There are a variety of agricultural loan facilities offered by this bank of which today I'll be talking only about  Kilimo Biashara loan for Small-scale farmers. The loan amount ranges from ksh5000 to ksh100000 depending on the borrower's capability to repay.
By now am sure you want to know the type of small-scale farmers targeted.Ok ,this loan is specific in that it only targets small-scale comercial food crop farmers.Its evident now that cash crop farmers or livestock keepers don't belong here.Note that the food crop farmers are limited to small-scale and the loan should only finance the purchase of farm oriented particulars like
agrochemicals,certified seeds or hiring machinery or paying for labour costs but must not be used to finance land leasing or buying. Up to here, its again clear that this loan is not for starters.
Lets now look at the eligibility points for the intended group of farmers for this loan facility i.e small-scale comercial food crop farmers.     
Eligibility/Qualifications
.Borrower must be an active account holder with equity bank
.Loan applicant must demonstrate the ability to repay.Previous successful loan repayment is an added advantage.
.Comercial food crop farmers borrowing must have an experience of atleast one successful season.
.Submission of loan applications should be within a period of one month before the onset of planting season.
.The agriculture group lending policy demands that borrowers must attend group meetings every week for some training on loan management and better farming techniques.
.Farmers must show understanding of the market for the food crop to be financed.
.Borrower must identify input suppliers and get quotations or pro-forma invoices for all the particulars to be financed.
.Loan applicants must provide documentary evidence to show ownership of land/farm or lease agreement signed and witnesed by a lawyer covering not less than two future seasons.
.The bank demands that farmers demonstrate existence of other sources of income that could be utilised for loan repayment incase of crop failure, loss of harvest or poor marketing due to any factor like adverse weather.
That's all about qualifications. Do you qualify?
Mostly banks and others lending service providers wish to be on the safe side when it comes to incurring losses especially through loan defaulters.As a result,security can be asked for from the borrower.The Kilimo Biashara loan is secured.
Lets now see what can be used as security;

SECURITY.
.Personal mortgage can be used over farm as security against the loan.
.A minimum of two guarantors with active credible accounts with equity bank can be in place of security
.Convectional securities like motor vehicles & land title deeds can be subjected for consideration.
.If you belong to an agriculture group, then group guarantees may also be considered as the loan security.
Repayment Period.
-Farmers granted the kilimo biashara loan will have a maximum of one year or one production season ,whichever is shorter,to repay the loan.
Are you a farmer?Are you interested in this loan?Send me back to the bank for you by asking your personal question below as a comment.
Wish you success in your farming business and loan appliation too!             
   
Advertisements

Mwabaya Katana

Posted By Mwabaya Katana

Mwabaya Katana is a Personal Finance online writer.He is the founder of 'Loans Kenya' Blog.

Previous
Next Post