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

Activities to be financed:

This is a loan designed to help customers in the agriculture sector to boost their activities which include.

• Horticulture (fruits, vegetables, and tubers e.g., ginger)
• Apiary (Bee keeping)
• crop production,
• livestock farming,
• irrigation,
• poultry farming/breeding,
• agricultural trade/marketing,
• agricultural processing,
• Agricultural input trade,
• agricultural produce distribution/transportation.
• Fish farming

Requirements

• 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