Interest rates adjustments 24 Nov 2017

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
Subsidised loans 4.00% 4.00%
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%
Arrears penalty 2.00% 2.00%

Existing and prospective clients of Agribank are hereby informed of the change in interest rates.
Issued by:

Sakaria Nghikembua
Chief Executive Officer
For enquiries, kindly contact the Marketing and Communication Division at:
Tel.: 061 2074332
Fax: 061 2074206

End

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