Agro – Business Loans

Short to medium term product designed to provide finance for purchase of agricultural equipment and machinery.

Activities to be financed:

  • Harvesters
  • Hatchery
  • Tractors
  • Ploughs and accessories
  • Post-harvest handling equipment
  • Irrigation Equipment

Features and Benefits:

  • Affordable interest rates
  • Flexible repayment plans structured to accommodate activity seasonality
  • Facilitates farmers to increase their production and therefore get more income
  • Flexible loan repayment period

What you need to get started:

  • Identifiable by means of serial numbers, engine numbers, make, model, etc
  • Purchased from a reputable dealer
  • Moveable and be able to be repossessed
  • The asset must be unencumbered (that is, free and clear of any other claims / prior liens)
  • Borrower Contribution: Depends on the age of the equipment as follows:
    • 1 – 5 yrs 10 – 25%
    • 5 – 8 yrs 25 – 40%
    • 8+ yrs 40% and above

Minimum loan amount: UGX 5,000,000 (Uganda Shillings Five million)
Disbursement: funds released to equipment vendor upon presentation of verifiable vendor.
Payment period: depending on age of machine as follows: 1 – 5 yrs (48 months repayment period)

Other Conditions:

  • Grace Period: Maximum of 3 months
  • Repayment Sources:
    • Sale proceeds from agricultural activity
    • Other sources of income

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