Agribank reminded farmers to make use of its production loan facility in light of the looming drought in Namibia that has resulted from the poor and delayed rainfall patterns.
The bank offers this production loan facility to farmers aimed at growing their agribusinesses to create wealth today, for prosperity tomorrow.
In a statement released yesterday, Agribank spokesperson Fillemon Nangonya said a production loan facility can be used for the acquisition of seeds, fertilisers, herbicides, and pesticides; weeding; fuel and oil; transportation costs; wages for temporary workers; leasing of grazing; livestock feed; licks; veterinary medicine; horticulture; and micro-irrigation.
The facility also caters for day-to-day farming expenses such as the maintenance of boreholes, farm vehicles and food rations for farmworkers.
“There is no loan limit, as the loan amount will be based on the affordability and risk appetite of the bank. Farmers will receive a grace period, depending on the cash flow of the production activities/agri-enterprise,” stated Nangonya.
The loan is repayable over one year, and can be revolved for up to five years. The facility is available to both full-time and part-time farmers, while the applicable interest rates are 8% for communal farmers and 9.5% for commercial farmers.
“At Agribank, we provide local solutions to every farmer’s needs, with tailor-made facilities at competitive interest rates. Agribank will be there for you at all stages of the production stage because we believe that your success is our success, and ultimately that of the whole nation,” he noted.
Lastly, Agribank calls on its clients facing financial distress and being unable to service their loan obligations to approach the bank and make the necessary arrangements.