Agribank extends farmland purchase loan repayment term
All Namibians younger than 35 and willing to purchase farmland through Agribank now have up to 30 years to repay their loans.
This represents a five-year extension from the usual 25-year period that is now only applicable to clients older than 35.
Agribank this week announced that it has extended its Farmland Purchase Loan Repayment Term to 30 years for young farmers aged 35 years and below.
It said this change was prompted the bank’s financial inclusion agenda with a special focus on the youth.
Under the farmland purchase loan product, loans are advanced to purchase farmland or additional land for agriculture-related activities that are instrumental in adding real enterprise value to the national economy.
The bank says the package is tailored for farmers
seeking to ensure a well-developed and productive utilisation of the land for food security and job creation.
Over the past few years, Agribank has embarked on a youth-inclusive journey providing youth-friendly terms and conditions.
In 2020, the pro-youth drive led to the introduction of the Women and Youth Loan Scheme, targeted at men and women of 35 years and younger, women of all age categories, and agri-professionals both full-time and part-time.
Under this scheme, the target group is offered flexible collateral financing options, such as salary-backed loans, whereby repayment can be through payroll deduction, contract financing and 100% loan-to-value collateral.
Contract financing requires off-take agreement between the applicant and a potential buyer or offtaker at the time of loan application. Correspondingly, a tripartite agreement between the client, buyer, and Agribank is to be signed once the loan is granted.
“The recent product review exercise added a provision of a debit order for the scheme, applicable when the payroll deduction agreement between employers and Agribank is not in place and subject to client’s affordability,” according to Agribank
It added that all applications are subject to due diligence and the credit policy of the bank.
This represents a five-year extension from the usual 25-year period that is now only applicable to clients older than 35.
Agribank this week announced that it has extended its Farmland Purchase Loan Repayment Term to 30 years for young farmers aged 35 years and below.
It said this change was prompted the bank’s financial inclusion agenda with a special focus on the youth.
Under the farmland purchase loan product, loans are advanced to purchase farmland or additional land for agriculture-related activities that are instrumental in adding real enterprise value to the national economy.
The bank says the package is tailored for farmers
seeking to ensure a well-developed and productive utilisation of the land for food security and job creation.
Over the past few years, Agribank has embarked on a youth-inclusive journey providing youth-friendly terms and conditions.
In 2020, the pro-youth drive led to the introduction of the Women and Youth Loan Scheme, targeted at men and women of 35 years and younger, women of all age categories, and agri-professionals both full-time and part-time.
Under this scheme, the target group is offered flexible collateral financing options, such as salary-backed loans, whereby repayment can be through payroll deduction, contract financing and 100% loan-to-value collateral.
Contract financing requires off-take agreement between the applicant and a potential buyer or offtaker at the time of loan application. Correspondingly, a tripartite agreement between the client, buyer, and Agribank is to be signed once the loan is granted.
“The recent product review exercise added a provision of a debit order for the scheme, applicable when the payroll deduction agreement between employers and Agribank is not in place and subject to client’s affordability,” according to Agribank
It added that all applications are subject to due diligence and the credit policy of the bank.
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Namibian Sun
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