Vuna Kilimo Loan
To enable individuals, cooperatives or corporate firms undertaking agricultural production activities access loans for purchase of farm inputs, equipment, set up greenhouses and irrigation systems.
- The individuals, Co-operatives and firms must be engaged in a viable crop, livestock or fish production activity at the primary level.
- Farmers must be residents or ideally own the land used for production
- Proof of viable market e.g. Tri-partite agreement involving buyers, Proof of cash flows
- Applicant must have been in operation for a minimum of 2 production seasons with positive cash flows
- The loan shall be repaid within 24 months matched with the seasons.
- Ability to retain at least 40% of the proceeds after loan deduction.
- Farm enterprise must have a minimum income of Kshs 20,000 per season.
- Applicant must provide proof of farm enterprise cash flows for the last 2 seasons and projection for the current season
- Applicant must provide proof of payments received in respect of the last season’s produce of the farm enterprise
- Collateral includes charge over titles, chattels and guarantees
- Amounts below Kshs 500,000 to have guarantors in additional to chattels. Tangible security for amounts above Kshs. 500,000. In the case of chattels forced sale value covers at least 150% of the loan
- Applicants can borrow between Kshs 10,000 to Kshs 2 million
- Willingness to channel all proceeds through the bank
- Maximum debt ratio of 60%
- Crop insurance not necessary for those who do not meet threshold for minimum acreage for insurance.
- Interest charged at base +2 p.a. on reducing balance
- Application fee to between 1% subject to Kshs 500 minimum
- Appraisal fee to be charged at 1%, minimum Kshs 1,000