Communal farmers eligible for Agribank loans

• FILLEMON NANGONYACURRENT and aspiring farmers in communal areas are eligible for Agribank’s loan products contrary to the belief that communal farmers do not qualify.

Agribank has several facilities under which communal farmers can be financed, such as the Emerging Retail Financing Product (ERFP) that was developed in response to the market’s demand for collateral-free products, especially for previously disadvantaged Namibian farmers.

Under ERFP, loans are granted on the basis that successful applicants will undergo a mandatory training programme on the production, management and marketing of commodities, for which the loan is being requested.

Additionally, a farmer will be attached to a bank-approved mentor for the duration of the loan facility.

For a farmer to be considered under this product, he/she should be a full-time communal farmer and should have a letter from the traditional authority authorising the use of the piece of land where farming is to take place.

In case of livestock farmers, one should also have his/her own brand mark from the Meat Board of Namibia.

ERFP is not the only product available to communal farmers. The women and youth loan scheme is another avenue through which Agribank can finance communal farmers, specifically women of all age groups and men under the age of 35.

The no-collateral loan facility is another product, especially salaried part-time communal farmers can use to access financing from Agribank. Repayment of the no-collateral loans is made through monthly payroll deductions, provided there is a payroll deduction agreement between an applicant’s employer and Agribank, at an interest rate of 9% per annum.

Communal farmers interested in Agribank products should, therefore, approach their nearest Agribank offices to discuss how the bank can help them realise their full farming potential.

Agribank has the mandate to promote growth and development of agriculture, through the provision of affordable, inclusive and innovative financing solutions.

Applications for loans can also be made online via the bank’s website, www.agribank.com.na

* Fillemon Nangonya is the public relations officer at Agribank Namibia

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