Nafaka Large-Scale

Loan offered to large scale farmers to enable them access farm inputs, working capital, farm equipment and other social needs e.g. school fees, medical bills, furniture etc.

  • Maximum debt ratio of 50% of gross margin.
  • Proof of viable market or existence of a warehouse receipt arrangement for products whose inputs are to be funded.
  • Minimum earnings and positive cash flows from farming of grains of 2 years or 4 seasons.
  • Borrower must be the owner of or lease of land used for production of the grain. Lease tenure should be more than tenure of loan by at least one year
  • Borrower must demonstrate ability and willingness to take life insurance and assign it to the bank for a sum insured not less than the loan amount.
  • Borrower must demonstrate ability to meet other costs of producing
  • Borrower must be willing to open and operate account with co-operative bank for disbursement/ remittance of proceeds and debt servicing.
  • Borrower must provide the following minimum documents for determination of repayment ability
  1. Amounts up to Kshs.10,000,000, bank accounts statements, production and earnings trend analysis and cash flow forecasts
  2. Amounts exceeding Kshs.10, 000,000- audited accounts or statement of affairs + income and expenditure statements, production and earnings trend analysis, bank account statements and cash flow forecast.
  • Borrower and marketer/buyer/warehouse demonstration willingness to execute tripartite agreements where possible.
  • Borrower demonstrating willingness to issue irrevocable instructions to buyer /warehouse to remit all payments in respect of produce to borrower’s account with us.
  • Land size should be greater than 5Ha.

Other Features
  • Loan Amount: from Kshs. 300,000 to 15,000,000
  • Interest rate: Base + 1% p.a.
  • Application fees of 1% of loan amount
  • Appraisal fees of 1% of loan amount
  • Maximum tenor of 12 months
  • Acceptable security will be a mix of:
  1. Legal charge to cover 60% of loan amount
  2. Acceptable chattels e.g. farm machinery & equipment whose forced sale value cover minimum of 150% of portion of loan to be covered by chattels
  3. Debenture covering all of the assets of the borrower
  4. Insurance cover over death and disability if borrower is an individual with minimum sum assured of loan amount with the bank’s interest noted

  • Farm input must be direct to the input supplier.
  • Farm machinery must be directly to equipment dealer
  • Social needs e.g. school fees and other domestic use must be credited to customer account with Co-op Bank.