- The maximum loan amount to a single borrower is up to Shs.2.1billion. However, this amount can be increased up to Shs.5billion on a case by case basis (for eligible projects that add significant value to the Agriculture sector and the economy as a whole). There is no designated minimum loan amount to the final beneficiary (farmer/ agro-processor) but BoU can only reimburse a minimum of Shs 10million to the PFIs.
- Loan Tenure : The maximum loan period should not exceed 8 years and the minimum should be 6 months.
- Grace Period:The Grace Period is up to a maximum of 3 years.
- Interest Rate : The interest rate to the final borrower is up to a maximum of 12% per annum. The 50% GoU contribution is disbursed to the PFIs at zero
Agricultural Loans
Alterfin
Featured
- Amount: between USD 100,000 and USD 1,500,000
- Loan Term:3 to 18 months
- Amount: between USD 100,000 and USD 1,500,000
- Currency: USD, EUR, or local currency
- Short-term credit operation, lasting 3 to 18 months, used to finance harvests. Short-term credit operations must be covered by sales contracts that exceed the value of the loan.
- Long-term investment loan of up to five years to finance fixed assets. For an investment loan, the financed property is pledged as a guarantee.
- Interest rate: in line with market rates (including mandatory currency hedging).
- Years in operation: at least two years
- Ethos: clearly aligned with Alterfin’s key areas of focus: working primarily with smallholder farmers (no more than five hectares of land), clear environmental and/or social objectives, aiming to improve the living conditions of smallholder farmers, commitment to sustainable agriculture through fair trade, organic farming, etc.
- Number of smallholder farmer beneficiaries: at least 150
- Annual sales: at least USD 500,000
- Operational self-sufficiency: > 90% and a positive trend
- Administration fee: 1% of the loan amount
Bank of Uganda
- Amount:Up to to Shs.2.1billion for a single borrower
- Loan Term: Upto 8 years and the minimum should be 6 months.
- The primary security for the credit facilities is the machinery and equipment financed, where applicable, and any other marketable securities provided by the borrower/final beneficiary. PFIs may seek additional security based on their evaluation of the risk profile of the project being financed.
- The PFIs shall ensure that the loan is adequately secured as per their credit policy to protect their interest and that of the BoU and the GoU.
- Loan processing fees charged by PFIs to eligible borrowers should not exceed 0.5% of the total loan amount. Legal documentation and registration costs are borne by the borrower.
Centenary Bank
- Amount:Up to to Shs.8 Billion.
- Loan Term:Loan period for working capital purpose is up to a maximum 24 months but development/ investment may exceed 24 months.
- Loan period for working capital purpose is up to a maximum 24 months but development/ investment may exceed 24 months.
No principal loan repayments during the grace period except for the interest where cash flows allows.
Repayable through equal installment payments whose amounts are dependent on the projected cash flow of the agricultural activity
Irregular payments can be structured basing on the cash flows
Interest charged on reducing balance
Minimum loan amount UShs. 100,000
Payments from other sources of income are allowed
Maximum loan amount of up to UShs 8 Billion.
Current or Savings Bank account
Completed loan application form
Payment of loan processing fee
Project undertaken must be an activity in the agricultural value chain
- Financial Card
Experience in project being undertaken
Business project must be profitable
Applicant must be resident within the branch designated area of operation
Applicant must be owner or tenant of the land on which he/she operates.
Securities can be mortgaged on titled or unregistered land, moveable assets like cows, goats, sheep, mortgaged household property or business equipment and tools
Loan period for working capital purpose is up to a maximum 24 months but development/ investment may exceed 24 months.
Minimum loan amount UShs. 100,000
Maximum loan amount of up to UShs 8 Billion.
Housing Finance Bank
- Amount:#TODO
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A Mortgage in legal terms refers to ‘the conveyance of title (legal or equitable interest) in real property by borrower to lender for repayment of money or loan. Which simply means that; A Housing Finance Bank Ltd. mortgage is an agreement in which money is lent to a borrower, for home construction, or purchase, buying urban plots or commercial property, using that very property as security.
- Have an account with us
- Ascertainable monthly income
- Have copy of the land title
- Copy of approved building plans
- Bills of quantities of outstanding work
- Photographs of four elevations of the building
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Post Bank
- Amount:#TODO
- Loan Term: #TODO
- Loan amounts matching your agriculture financing needs.
- Flexible repayment terms.
- Competitive interest rates
- Accessible from any of our countrywide branch network.
- Fast Turn Around Time
- Top up loans available
- Flexible collateral requirement
- Flexible tenure
- Insurance Cover.
- Grace periods available.
- Hold a Post Bank Account.
- Completed loan application.
- Payment of application fees.
- Financial Card.
- Resident within the branch designated area of operation.
- Applicant must be engaged in proven commercial agricultural activities across the value chain.
- Agricultural activity must be profitable.
- Owner or proven tenant of the land on which agricultural activity is being operated
- Bank statement from other banks evidencing income regularity (Minimum of 12 months) where applicable.
- Experience in project being financed.
- Sufficient collateral for the loan covering 120 % of loans amount.
- Up to 4% per annum
Pride Microfinance
- Amount:#TODO
- Loan Term:#TODO
- Flexible amounts starting from Ugx 200,000.
- Grace periods commensurate with the gestation period of the enterprise to allow time for harvesting and selling of products.
- Attractive interest rates
- Customers can access the loan even when they have other running loans with Pride so long as they have the capacity to service both loans.
- Flexible repayment period depending on the agricultural enterprise
- Quick loan processing i.e. within 3 days
- Valid National ID/Driver’s license with NIN/Passport with NIN and passport photos
- Should be between 18-75 years of age
- Have a savings account with Pride/Willing to open an account
- Engages in commercial farming
- Have adequate security e.g. land, motor vehicle or chattels such as household or business assets and guarantor(s).
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Root Capital
- We partner with small and growing agricultural businesses to overcome critical challenges and capacity gaps through holistic services including; loans, training, and tailored services
- Years in Operation: 3 years of business operations. We focus on financing for agricultural businesses, cooperatives and related enterprises. We do not lend directly to individual farms.
- Minimum Annual Revenue: $100,000
- Location: Must be legally established in one of Root Capital’s lending countries within Africa, Latin America, or Southeast Asia (see sidebar).
- Documentation: Must present audited or management-prepared financial statements from the past three years.
- Products & Services: Must be active in one or more of our focus industries: coffee, cocoa, honey, tree nuts, vanilla, grains, oilseeds, and other staple crops.
- Commercial Relationships: Must have strong relationships with established buyers.
Stanbic Bank
- We offer a wide range of finance, investment and risk management solutions across the entire agricultural value chain
- Financing solutions to keep your agricultural business up and running.
- Access to financing specifically to manage your cash-flow.
- Asset finance for farming equipment.
- Production loans for a variety of farming-related production resources.
- Affordable insurance from our trusted partners
- 24-hour business banking support through our Enterprise Centre
- Business Legal documents
- Business’ financial statements, including and income statement, balance sheet and cash flow
- A 12-month cash flow forecast
- Management Accounts or Audited Financials for 2 years
- Cash flow statement projections.
- Valuation report if security pledged is land/Buildings
- Bank Statement from the client has been banking for 1 year
- Financial Card
- Performa Invoices for the machinery
- Prime + 3% interest rates
- 2% of the Loan Amount arrangement fees
Yunus Social Business
- Long-term loans with favourable interest rates and grace periods. Ranging from $100,000 to $500,000.
- Amount: between USD 100,000 and USD 500,000
- The regions where we provide funding are: Brazil, Colombia, India, Kenya, Rwanda, and Uganda.