Nafaka Loan Small-scale

Loan offered to small scale farmers to enable them access farm inputs for production of cereals which include maize, wheat, barley, sorghum, rice and millet among others.

  • Individual must be a farmer engaged in viable production of maize, wheat, barley, rice, sorghum and millet on a small scale.
  • Must be residents, should be the owners of land used for production and for leased land it should be two (2) years prior to expiry.
  • At least 12 months in operation (2 seasons of grain production), with positive net cash flows.
  • Must be willing to open and operate account with Co-operative Bank for channeling the disbursement and repayments
  • Maximum debt ratio of 50% of Gross income (income from farm, employment or other businesses as evidenced by bank account turnovers and farm gross margin analysis).
  • Must have life insurance on the life of borrower (sum assured pegged on the loan amount).
  • Land size should be between 1 Ha & 5Ha

Other features
  • Loan Amount: from Kshs.20,000 to 300,000
  • Interest rate: base +1 %
  • Application fees of 1% of amount requested, minimum Kshs 500
  • Appraisal fees of 1% of amount requested, minimum Kshs 1000
  • Maximum tenor of 12 days
  • Security should be chattels whose forced sale covers minimum 150% of loan.
  • Insurance over death and disability with minimum sum assured of loan amount with the banks interest noted.
  • Irrevocable instruction to the buyer to channel all proceeds through the bank and/or proof of market e.g. positive cash flow.
  • Disbursement must be direct to the input supplier.