The Agricultural Bank of Namibia (Agribank) has suspended the salary-backed loan scheme which was being offered to farmers.
Agribank chief executive Raphael Karuaihe says this is in light of the recent directive from the Ministry of Finance that it will no longer process new personal loans for government employees through the Avril Payment Solutions platform.
“As a consequence, the bank has placed an immediate moratorium on its salary-backed loan facility for government employees,” says Karuaihe.
However, existing loans remain unaffected and will continue to be administered by the Ministry of Finance until they are fully settled.
The salary-backed loan scheme was launched to improve financial inclusion among farmers who lack collateral.
The programme targets salaried part-time farmers, agribusiness ventures and other agricultural stakeholders by facilitating access to finance with repayments deducted directly from their payroll.
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