19 Dec 2017
24 November 2017
FOR IMMEDIATE RELEASE
Interest rates for some Agribank products will see a modest increase of 0.50 percent (50 basis points) effective 1 December 2017. The Bank’s interest rates have not been adjusted since November 2013.
Notwithstanding the increase in some products, the Government subsidised interest rates will remain unchanged at 4%, while penalty interest rate on arrear balances will similarly also remained unchanged at 2%. Overall, Bank’s interest rates remain competitive relative to the market.
Subsidised loans are loans to communal farmers under the National Agricultural Credit Programme (NACP) and resettled farmers under the Post Settlement Support Fund. The NACP was established in 1995 for communal farmers to access credit in order to increase food production and become surplus producers, create jobs and alleviate the cycle of poverty. It also serves as a preparatory stage for small scale farmers in communal areas before they could be considered to qualify for the purchase of commercial farmland under the Affirmative Action Loan Scheme (AALS).
The new interest rates per loan type are indicated in the table below:
|Loan Type X||Previous Rates X||New Rates X|
|Short term loans||7.50%||8.00%|
|Medium term loans||8.25%||8.75%|
|Long term loans||8.00%||8.50%|
|NACP non-production loans X||7.00%||7.50%|
|NACP production loans||4.00%||4.00%|
|Post resettlement support||4.00%||4.00%|
|Bush control loans||6.00%||6.50%|
Loans are granted against security of fixed property, investment or any other acceptable form of security (fixed deposits, investments and surrendering value of policies). read more
No, Agribank is not a commercial bank. read more
Yes, Agribank can assist you to start farming. read more