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Requirements for Agricultural Loans
The applicant should either be the owner of the property to be developed, have proper legal/leasehold agreement or have proven access to property in the case of family lands.
The applicant must obtain technical information on the particular enterprise/project to be undertaken prior to consideration for loan approval. Technical information on drainage and irrigation must be provided where necessary.
Other than banana farmers with organized marketing arrangements, loans will be granted to agricultural enterprises/activities for which sound marketing arrangements have been put in place, such as contracts and other commitments.
Generally the Bank shall consider granting a grace period for commencement of repayment of principal, which shall as far as possible, coincide with the interval between the start of project implementation to production of output. Grace periods may range from two (2) months to twenty-four (24) months for crop and livestock production. During the Grace Period, interest shall be payable. The Bank may, in special cases consider capitalization of interest during the Grace period.
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