Product Purpose
The bank finances smallholder farmers’ groups composed of 50-400 members who are involved in the production and marketing of various crops as part of a value chain. The farmer group’s Funds may be utilized for working capital such as inputs, storage, crop finance, or asset acquisition including farm machinery, processing equipment, and milk coolers, among others.
Key Product Features
- Under this scheme, the bank supports farmer groups that are organized and registered as either a cooperative society, association, or company limited by guarantee.
- Individual farmer loan requests are aggregated as one Farmer Group/Cooperative loan.
- This product is offered with the highest levels of concessional including interest rates of 10% and
concessions on collateral requirements.
Tenure
Tenor of up to 5 years
