Agribank reassures women and youth on loans

This comes after a young Namibian, Namene Nekwaya, complained that his application for a loan to set up a hydroponics project was rejected by the bank's Oshakati branch despite him meeting the set criteria.“The bank is not doing what it promises the nation. I am disappointed because it took me between four and five months to prepare my business proposal and to secure companies to buy my products. They dismissed it without even going through it. “To make matters worse, a friend in a similar situation got a loan and is now farming. The bank staff at Oshakati derailed my plans,” Nekwaya said last week and accused the bank of deceiving the public. “Since I am unemployed, I have thought of using my skill and education to start a farming venture, but the bank let me down,” he said.Nekwaya holds qualifications from the University of Namibia, the Namibia University of Science and Technology, as well as the University of Ghana. Agribank spokesperson Fillemon Nangonya last week dismissed the claims and said there appears to be a misunderstanding between Nekwaya and the officials at the Oshakati branch.“The cash-flow lending facility is available for the public. Numerous youths who have qualified under this facility were financed, and they are busy farming as we speak,” he said.Nangonya advised Nekwaya to contact the bank “so that we can take the matter up with the person who assisted him so that we understand what was discussed between the two”.Nekwaya said he has already submitted a complaint in writing to the bank regarding the issue.According to the bank, there are three categories of Namibians who qualify for the women and youth scheme: young people up to 35 years, women of all ages, and agri-professionals.There are three options for financing under the loan scheme. Cash-flow lending is for short-term loans with no collateral required from clients who do not have fixed property or have limited collateral scope on their fixed properties.“The funds to be borrowed are based on the projected cash flow of the venture,” the bank said.The salary-backed loans are medium and short-term loans with no collateral required from clients, but the monthly payment is done through salary deductions or debit orders. For those interested in buying farmland, the collateral requirement has been relaxed.“We offer 100% loan-to-value collateral. This means we can finance a farmland at a price equivalent to the bank's valuation of the property, unless additional collateral is provided,” said Nangonya. Email: matthew@nsmibian.com.na

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