Unique Agribusiness Financing Models
Maelezo
Seasonal Loans for Agriculture
These are credit facilities granted to finance purchase of seasonal agricultural inputs, meeting harvesting, transportation and other expenses before selling the crop by the end of crop season.
- Repayment source is mainly sales proceeds of the respective crop
- The main security for these loans will not be stocks under collateral management but other securities acceptable by the Bank.
- These credits will only be available to borrowers with a good track record in similar line of business
- Borrowers who are linked to key off-takers such as out-growers.
Commodity Financing under CMA/Warehouse Receipts Financing
These will be granted to finance purchase, process and sale of crops which are held under collateral management and taken as main security for the loan.
- The crops under this credit facility shall be those that are easily marketable and saleable.
- The borrower shall be required to build up initial stock or have an acceptable collateral/security for initial disbursement by the Bank.
- Subsequent disbursements shall not exceed 50% of the value of stocks delivered in a warehouse under collateral management by bank's appointed agent where there is no confirmed sales contract and 65% where there is a confirmed sales contract from a reputable buyer.
- Sales proceeds shall be controlled to ensure that they are deposited into respective borrower's accounts with the Bank and the loan shall be fully repaid when all stocks are sold.
- Outstanding exposures secured by stocks under collateral management shall not exceed 50% of the exposure fully covered by other collaterals where the risk of selling price decline is not mitigated by confirmed irrevocable LC, guarantee or price insurance scheme.
- Stocks under collateral management shall be taken either as an additional or sole security within the single borrower/group limits where the price risk fully is mitigated.
Seasonal Loans for Agriculture
These are credit facilities granted to finance purchase of seasonal agricultural inputs, meeting harvesting, transportation and other expenses before selling the crop by the end of crop season.
- Repayment source is mainly sales proceeds of the respective crop
- The main security for these loans will not be stocks under collateral management but other securities acceptable by the Bank.
- These credits will only be available to borrowers with a good track record in similar line of business
- Borrowers who are linked to key off-takers such as out-growers.
Commodity Financing under CMA/Warehouse Receipts Financing
These will be granted to finance purchase, process and sale of crops which are held under collateral management and taken as main security for the loan.
- The crops under this credit facility shall be those that are easily marketable and saleable.
- The borrower shall be required to build up initial stock or have an acceptable collateral/security for initial disbursement by the Bank.
- Subsequent disbursements shall not exceed 50% of the value of stocks delivered in a warehouse under collateral management by bank's appointed agent where there is no confirmed sales contract and 65% where there is a confirmed sales contract from a reputable buyer.
- Sales proceeds shall be controlled to ensure that they are deposited into respective borrower's accounts with the Bank and the loan shall be fully repaid when all stocks are sold.
- Outstanding exposures secured by stocks under collateral management shall not exceed 50% of the exposure fully covered by other collaterals where the risk of selling price decline is not mitigated by confirmed irrevocable LC, guarantee or price insurance scheme.
- Stocks under collateral management shall be taken either as an additional or sole security within the single borrower/group limits where the price risk fully is mitigated.
Unaweza kupendezwa na
Deposits
Agri MSME Products
These are products designed for small and mediums enterprises which already exposed to conventional Banking and related services