The purpose of this loan is to enable existing semi-commercial farmers engaged in horticulture (dambo) farming showing great potential for growth to access high efficient solar-powered drip irrigation assets on loan to improve productivity, efficiency and grow their businesses’ revenues. The loan is in form of Asset where the borrower becomes a legal owner of the asset upon completion of the loan. In this case, the collateral backing the loan is the asset.
Targeted
- Semi-commercial farmers belonging or affiliated to a Cooperative, Association and clubs
Features
- The collateral backing the loan is the asset.
- Maximum Loan term – 18 Months
- Maximum Loan value – According to the Applicant’s capacity to repay from the business proceeds.
- Loan payment is made direct to the appointed reputable supplier or dealer of equipment.
Requirements
- Market contract
- Physical collateral or Third Party Guarantee
- Cash contribution of up to 20% of total Loan should be made by the Borrower.