THE Agribank of Namibia launched a new product called ‘no collateral loan’ at Oshakati on Friday.
The product is the bank’s response to farmers’ needs, especially those in communal areas who do not have access to conventional collateral that would enable them to secure loans from the bank.
“This intervention is a step towards the bank’s strategic objectives of catalysing transformation of the agricultural sector in Namibia,” said Agribank chief executive officer Sakaria Nghikembua at the launch.
Nghikembua said the bank is committed and ready to play its role in the country’s economy by coming up with a product targeted at communal farmers.
These are Namibian farmers, who genuinely do not have fixed property in a proclaimed urban environment.
Loans will range from N$5 000 to N$500 000 per individual client at 8% interest per annum, and they are payable in 12 to 54 months, depending on the loan size.
Credit life insurance is part of the product to ensure that the bank is paid in the event that a client dies before paying off the loan to the bank.
Speaking at the launch, vice chairperson of Agribank board of directors Michael Iyambo explained that the bank continues to provide financing for agricultural purposes against mortgage collateral and/or fixed term investment.
He said the financial services institution decided to support the funding of agro-processing industries in the country to add value to basic agricultural produce, create employment and expand production in support of economic growth.
Oshana, Oshikoto and Omusati governors, Clemens Kashuupulwa, Henock Kankoshi and Erginus Endjala respectivly, also attended the launch.
– Nampa
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